UK must act now to ensure shale gas can fill the energy gap

DECC graphic on shale well depthBy TIM KNOX and DANIEL MAHONEY                                                

While low oil and gas prices will make many extraction sites uneconomic and reduce supply in medium term, UK shale investors are concerned about prices in 2020s, not the current price

However, the current low oil price has led some to question whether UK shale development is economically viable.

This concern would appear unjustified, considering investment decisions will be based on gas prices in the 2020s – by which time prices are likely to rise.

Read the full analysis on our BUSINESS PROFILE page:  http://goo.gl/HYRUcz

However, on the first anniversary of Scottish Government’s announcement of a moratorium on fracking and unconventional gas, Friends of the Earth Scotland have today said that low oil price means shale gas is not economically viable.

A spokesman said: “The UK Government continues to offer tax breaks and weaken planning laws in its attempt get the fracking industry going, yet the low oil price has rendered the economics of unconventional fossil fuels totally unviable.”

See also: goo.gl/9roUPF

Get the full fracking facts about shale gas in new DECC guide

 

 

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