UK's Shale Gas Revolution – TaxBack

from the blog.

UK’s Shale Gas Revolution

How the UK’s Shale Gas Revolution Will Affect Employment for
Gas & Oil Workers

The UK has traditionally been a centre of excellence in the oil
field and services industry, providing thousands of employments for
both local and foreign workers. The Shale Gas Revolution may change
all this, although not just yet in the near future.

Gas & Oil

As it happens, there have only been 11 new exploratory wells for
shale gas and oil, which is not enough to ruffle some feathers or
stress out gas and oil workers. An immediate concern would be the
continuous drop in oil prices in the global market. If it remains
low, oil would have to be left in the ground causing a rapid drop
in production that will result in employment problems. In fact,
offshore drilling has felt the impact of an industrywide glut,
particularly in the decline of its contracts-drilling business’
values and rig-use fees.

Still, if the UK were to consider the situation in the US where
shale oil drilling is showing real progress, it is possible for
employment for gas and oil workers to see major changes. The
so-called shale states are doing much better job-wise than the
non-shale states.

The problem in the UK, however, is that the progress for shale
oil drilling is “glacially slow compared to other countries”,
according to the head of the trade body UKoog. Author of a recent
shale gas report and research director at the UK Energy Research
Centre, Professor Jim Watson, also said that the experience of
shale gas production in the UK is low level. Further training and
study would have to be carried out to improve the situation.

His statement is further supported by a resource from the
Friends of the Earth Cymru that says that the jobs that will arise
from fracking will be “low-skilled, low-paid and temporary”. For a
period of 4 years, only around 200 employment opportunities are
predicted.

Nonetheless, the Shale Gas Revolution could open doors to
thousands of job opportunities in agriculture, energy efficiency
and renewable industry. Although tourism is one of the sectors that
will feel the potential impact of shale gas drilling, there could
be mixed reaction, especially from people who come from places that
fracking is banned, criticised, gained controversy or
suspended.

This is no reason to give up on unconventional gas activity just
yet. As the spokesman for the Department of Energy and Climate
Change has said, “The government is working to develop the shale
industry, but this is being done carefully to bring about the best
outcomes for communities, the industry and investors. Shale has the
potential to create jobs and make us less reliant on imports from
abroad while moving to a cleaner, greener future.”

There is little doubt that the Shale Gas Revolution will succeed
in bringing in investment, employment, economic growth and energy
independence. But it will have its share of problems over
environmental concerns and fracking technologies. Still, it will be
a long wait before its impact will be widely felt. Apart from the
11 exploratory wells, there are shale gas wells to be drilled in
Preston New Road, Cuadrilla (4 wells), Roseacre Hall, Cuadrilla
(4), North-west site location TBC, iGas (1), East Midlands site
location TBC, iGas (1), and Wisborough Green Celtique Energie
(1). There are also shale wells to be fracked in Preston New Road,
Cuadrilla (4), Roseacre Hall, Cuadrilla (4), and KM8 at Kirby
Misperton, Third Energy (1).



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