A report published today says up to £33bn is required in order to get the shale gas industry up and running in the UK while leading to the creation of 64,000 jobs.
The report, commissioned by industry body the UK Onshore Operators Group (UKOOG) with consultancy firm EY, says that in order to drill 4,000 wells over an 18-year period, billions of pounds must be ploughed into the industry’s supply chain.
Production of specialised equipment such as pumps trucks and other oil field services needed for hydraulic fracturing will require £17bn of the £33bn investment identified in the report.
The study also states the requirement for 50 new land-based drilling rigs to meet rising growth along with the fabrication of 8,000 miles of steel casing and £4.1bn of investment into additional services including transportation.
UKOOG chief executive Ken Cronin says the plan, which has been criticised for its potentially damaging environmental effects, will safeguard the future of the UK’s energy supply.
“We are building an industry in this country which will not only potentially give the UK energy security, and make a big contribution in tax revenues, but will also bring immense benefits to other industries and create sustainable, well-paid jobs,” he said.
Michael Fallon, UK minister of state for business and energy, said the report’s message urges the UK to “get ready for shale.”
“I want this report to be a call to action for the UK supply chain for small and large companies, whether in Lancashire or Lowestoft, whether in the steel industry, the chemical industry, or in other manufacturing and services,” he said.