Industry Welcomes May's Shale Wealth Plans

Industry Welcomes May's Shale Wealth Plans
Trade body for the onshore oil and gas industry UKOOG welcomes the UK Prime Minister's decision to share out profits from fracking with residents of host areas.

The trade body for the onshore oil and gas industry, UKOOG, welcomed the UK Prime Minister’s decision to share out profits from fracking with residents of host areas

“The onshore oil and gas industry in the UK continues to believe that local people should share in the success of our industry and be rewarded for hosting sites on behalf of others in the country,” said Ken Cronin, chief executive of UKOOG, in an organization statement. 

“The overarching objectives of secure, affordable and low carbon energy continue to be a driving force for our industry,” he added.

“Just 12 years ago, Britain was a net exporter of gas, but imports now make up nearly half of our gas demand, at a cost to this country of around $1.3 million (GBP 10 million) a day. Recent estimates by National Grid are that, without shale, the UK could be importing over 90 percent of its gas by 2040,” Cronin concluded.

Not everyone was enamoured with the latest fracking proposals within the UK government however, with the Green Party reacting angrily to May’s new scheme.

"By calling the EU referendum, David Cameron showed the Tories' talent for dividing communities. Prime Minister Theresa May is now taking this forward by offering individual payments, little more than bribes, to households in areas affected by fracking,” said Green Party MEP Molly Scott Cato on the party’s official website.

“This is bound to set household against household and can only exacerbate community tensions,” she added.

The development of shale gas in the UK could create a $43 billion (GBP 33 billion) investment opportunity for British business with the potential to create over 64,000 jobs, according to UKOOG’s “Getting Ready for UK Shale Gas” report, released in April 2014. 

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