IoD: Shale gas could create 74,000 jobs

A NORTH West shale gas industry could create thousands of jobs, reduce imports, and generate significant tax revenue.

That’s according to the Institute of Directors which is launching its report into the industry’s potential at an event in Preston this morning.

Getting Shale Gas Working says investment could peak at £3.7bn a year, supporting 74,000 jobs, and the supply of domestic gas could cut imports from 76% to 37% by 2030. This would halve costs to £7.5bn.

But Friends of the Earth said the report painted a “completely distorted view” and warned of the impact on local communities.

There are large shale gas reserves underneath Lancashire but the hydraulic fracturing extraction process – or fracking – which involves pumping large amounts of water underground at high pressure, has many opponents.

Environmentalists claim it can pollute the water table and last year the government imposed a temporary ban on fracking after a minor earthquake in Blackpool was linked to the operations of Cuadrilla Resources, the first to drill for gas in the area. This was lifted in December and Chancellor George Osborne is now promising tax incentives to support the industry.

The report says shale could have environmental benefits as the gas would have lower emissions than imports and drilling operations only need a small surface footprint.

Corin Taylor, the report’s author and senior economic adviser at the IoD, said: “Shale gas could be a new North Sea for Britain, creating tens of thousands of jobs, supporting our manufacturers and reducing gas imports.

“Further exploration will be needed to assess the size of technically and commercially recoverable resources. At the same time, partnerships need to be established between industry, government and communities to ensure that development of this vital national resource benefits local people.”

Friends of the Earth Energy Campaigner Tony Bosworth said: “This industry-funded report paints a completely distorted view of the benefits of shale gas development in Britain.

“Shale gas extraction will have a major impact on local communities, undermine efforts to tackle climate change and do little to tackle soaring fuel bills.

“We should be embarking on a clean energy revolution to develop the huge potential from the wind, waves and sun – not rushing further down the dead end street of fossil fuel production.”