The Institute of Directors has welcomed government plans to fast-track fracking applications and make sure the UK can harness the potential of its shale gas reserves.
Dan Lewis, Senior Infrastructure Adviser at the Institute of Directors said:
“Shale gas is a resource which holds huge opportunities for the UK, but we are currently missing out because applications to drill are getting stuck in the planning system. With the proper regulations, fracking will be safe and has the potential to create tens of thousands of jobs. We welcome the Government’s recognition of the need to iron out the kinks in system that mean shale companies are not being dealt with on a reasonable timescale.
“Security of supply is the top energy priority for IoD members, who run business large and small across the country. We will continue to rely on gas to produce electricity and heat our homes for many years to come, so it makes sense to extract our own shale gas, rather than import it from abroad. Shale gas is also used in a variety of industrial processes, where more jobs could be created if we had reliable access to affordable gas in the UK.”
“With gas prices so much lower than just a year ago, reducing the length and risk of planning has real urgency. Ironically largely due to US shale production, the profitable price for extraction from UK shale has effectively halved, so exploration costs and difficulties like planning must be tackled if shale is to succeed like it has in the US. Otherwise we will pay a much higher cost in lost industry, taxes and imports.”