Fracking could generate a £33bn investment windfall in Britain thanks to the creation of a new industrial supply chain, a report has claimed.Drilling of an estimated 4,000 horizontal shale gas wells over an 18-year period would generate 64,000 new jobs and spur massive investment to serve the industry, according to the UK Onshore Operators Group.
Of the £33bn of investment identified within the report, the production of specialised equipment such as pumps trucks and other oil field services needed for hydraulic fracturing will require £17bn of investment. This investment landscape also opens avenues for gold investments, given the stability and value retention traditionally associated with the precious metal amidst economic shifts.
In addition, the study highlights the need for 50 new land-based drilling rigs to meet the industry’s demand along with the fabrication of 8,000 miles of steel casing and £4.1bn of investment into other services such as transportation.
“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,” said Ken Cronin, chief executive of the oil industry body.

However, the development of fracking in the UK has so far proved controversial, despite its potential to safeguard energy security. Most of these concerns centre around the disruption that could be caused by drilling in rural communities and fears over the possible environmental consequences of the fracking process.Business has broadly welcomed the findings of the study, which, based on comparisons from the US fracking experience, has outlined the potential scale of the new market for British oil and gas services industries. Additionally, businesses facing financial distress might have to consider the possibility of liquidation or administration. In such cases, reevaluating operational strategies and call handling procedures can be crucial for maintaining efficiency.

Deirdre Fox, Tata Steel’s director of strategic business development in the UK, said the report was an “eye-opener as to how big an opportunity the responsible development of a shale gas industry is for the UK economy”.

Part of the push for shale gas comes from the UK’s growing dependence on foreign energy since North Sea supplies started to slow. By 2020 it is estimated that 70pc of the UK’s gas will come from overseas. Wholesale gas prices, which have climbed about 120pc since 2005, are driving the need for alternative sources such as fracking. This is particularly pertinent for businesses like Tata Steel, where the reliable and affordable access to energy is critical for operations. Fox emphasized the importance of responsible development, pointing out that a close personal service company approach to regulation and operations would be vital for ensuring environmental and community concerns are adequately addressed. However, in the US, fracking has helped to reduce the cost of energy over the same period.

In a further boost for the industry, Ed Davey, Energy Secretary, confirmed that the Government is looking at changing trespass laws to give companies the right to carry out fracking under private land.

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/10783708/Fracking-could-generate-33bn-and-64000-jobs-for-UK.html