With anxiety of future energy supplies persisting in the UK, a recent discovery has helped to make the energy sector, as well as the government, feel like celebrating. In large parts of northern England, the practice of ‘fracking’- the extraction of shale gas – has become more common in recent years, but it seems that shale gas reserves are larger than first thought.
According to a report for the government undertaken by the British Geological Survey, they believe that as much as 1,300 trillion cubic feet of shale gas is lying untapped underground in northern England, around twice as much as first anticipated. The figure is the potential amount of gas underneath, though not all of it might be extractable, but the government were quick to laud the news.
Going underground
As a result of the discovery, it is thought that the government may be willing to encompass drilling for shale gas as part of its plans to update the UK’s wider infrastructure. It may also put unease over future energy supplies at bay to some degree, but how, if at all, could the national and regional economies stand to benefit?
In bullish mood, Chancellor George Osborne claimed that for each fracking well that is created, something in the region of £100,000 would go back into local communities. If several are created at a time in a town or city of at least 150,000 people, then in theory, fracking could have a significant impact in terms of job creation and retention, but not everyone is so sure.
Environment the loser?
While the potential economic benefits of shale gas extraction could be huge for people looking for jobs, local communities where employment opportunities are thin on the ground, for tax revenues and even people wanting to pay less for energy bills, the same can’t be said for the environment. Fracking is seen by its critics as dangerous, disruptive and harmful in terms of CO2 production.
Significant groups of environmental activists have protested about fracking, and have managed to bring to light some of its drawbacks. Also, environmental bodies which wield some power have aired their concerns about the government’s commitment to lowering the UK’s greenhouse gas emissions. This could see the government and energy firms take baby steps in upping gas extraction.
Although the environmental concerns are great, in light of the ageing energy infrastructure of the UK, fracking could be here to stay. At a time when anything helping to boost economic growth might seem non-existent, there is a strong likelihood that the discovery of more shale gas may see new fracking wells built at a faster pace, with some jobs likely to be created.
