Shale gas supply chain could be worth $55 bn to UK
LONDON -- Shale gas could create a new onshore supply chain market for equipment, services and skills across a number of industry sectors worth up to $55.4 bn (£33 bn) by 2032, according to a report by the United Kingdom Onshore Operators Group (UKOOG).
The UK could also lead the way in technology and skills across Europe, a significant and untapped market, adds the report, commissioned by UKOOG and part funded by the UK' s Department for Business Innovation and Skills.
The report sets out UK industry sectors that could benefit from UK shale development. These include specialized equipment and skills for hydraulic fracturing operations worth $28.5 bn (£17 bn); a waste management, storage and transportation requirement worth $6.9 bn (£4.1 bn); a steel requirement worth $3.9 bn (£2.3 bn); and a new rig manufacturing industry worth $2.7 bn (£1.6 bn).
The report projects that a flourishing shale gas industry in the UK would lead to the employment of over 64,000 people at peak employment, most of them in the supply chain.
Michael Fallon, Business and Energy Minister, said: “This report shows the huge prize at stake for the UK in terms of jobs and manufacturing in the supply chain for our onshore oil and gas industry. Shale gas has the potential to kickstart a whole new industry, building on the world leading expertise the UK already has in the energy sector. There will be significant opportunities across the steel, manufacturing and engineering industries as shale develops.
“This government is fully committed to ensuring the UK not only benefits from the energy security shale gas could provide but also maximizing the economic benefit across the country. It’s time to get ready for shale.”