NRG Expert Reveals Effects of 2013 Budget on UK Shale Gas Industry
NRG Expert, the energy market research company, reveals the effects the 2013 UK Budget has on the shale gas industry in the UK.
The government’s budget offers a package of support for the UK shale gas industry, including a new shale gas field allowance and community benefits from shale gas projects.
Shale gas incentives are being offered as part of the UK government’s efforts to provide new employment, boost the economy and help communities. George Osborne stated, “shale gas is part of the future, and we will make it happen”. This signalled the UK government’s commitments to the shale gas industry.
Here are some of the key government initiatives announced in the 2013 Budget:
UK Shale Gas Incentives
- The Government will introduce a new ﬁeld allowance for shale gas and extend the ‘Ring Fence Expenditure Supplement’ for shale gas projects from 6 to 10 years.
- The Government will produce technical planning guidance on shale gas by July 2013 to provide clarity around planning during the important exploration phase. The Government will ensure an effective planning system is in place and by the end of the year will produce guidance for the industry to ensure that the planning system is properly aligned with the licensing regime and regulatory regimes, principally: health and safety, and environmental protection.
- The Government will develop proposals by summer 2013 to ensure that local communities will beneﬁt from shale gas projects in their area.
Shale Gas Industry
The US has seen a rapid increase in shale gas exploration, helping to lower gas prices across the country and increase energy security. This has also reduced the dependence the US has had on importing foreign fuel and helped to reduced CO2 emissions.
The benefits of shale gas exploration in the US highlight the potential benefits the UK can take from exploration. With the UK estimated to have vast shale gas reserves it could help reduce the reliance on imported LNG, contributing to high bills to UK households. Shale gas deposits in Northern Island alone could be worth £80 Billion according to a report from PwC.
NRG Expert is a London and Toronto based energy intelligence and market research publisher. NRG Expert provides up to date energy data, information and analysis on worldwide energy markets, including shale gas, natural gas, electricity, coal, nuclear, renewable energy, water and waste, clean energy, energy investment and all elements of energy infrastructure.
LNG World News Staff, March 27, 2013; Image: UKOOG