Spending Review: Deloitte comments on today’s shale gas announcement
27 June 2013
Neil Cornelius, Deloitte energy director on today’s shale gas announcement, said:
“The UK will be reliant on significant volumes of gas for the next couple of decades, in all given scenarios of the UK energy mix. In the absence of shale gas, a large proportion of that will be imported. However, under industry assumptions the development of the Bowland Basin alone could displace 14 per cent of imports in 2020. This will create significant employment and tax revenue for the UK. This increased tax revenue could help to offset the cost of rising international gas prices in the future.
“Excluding the effect of the tax incentives announced today, Deloitte has previously estimated potential tax revenues from Bowland Basin gas production at £580 million per annum by 2020, rising to over £1 billion per annum if gas prices are at the higher end of the range published by the UK Department for Energy and Climate Change.
“Previous Deloitte analysis demonstrates the potential economic benefits of shale gas development in the Bowland Basin and also the ongoing uncertainty regarding the economically recoverable reserves. In this context the division of potential benefits between developers, communities and governments via both tax structures and community funds seems a pragmatic and constructive contribution to the industry’s development.”
Notes to Editors:
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The information contained in this press release is correct at the time of going to press.
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