Fracking may results in 64,000 new jobs and attract 33 billion pounds worth of investment in the United Kingdom, according to a government-backed report released on Thursday.
The investment will go towards purchasing specialised equipment such as 50 drilling rigs, pumps and 8,000 miles of steel casing over 16 years until 2032, reported professional services firm Ernst & Young in their report.
UK energy minister Michael Fallon welcomed the news, saying the research pointed to the “huge prize at stake” for Britain’s manufacturing industry. He also promised that 2 million pounds will be spent on researching new technology that will be less harmful to the environment.
“Shale gas has the potential to kick-start 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,” said Fallon, according to the Guardian.
The report, Getting Ready for UK shale gas, said that most of the investment funds (17 billion pounds) will be spent on specialized machines and building technical skills for fracking. Another 4.1 billion pounds will go towards “waste, storage and transportation”, while an additional 2.3 billion pounds will be spent on steel.
Fracking, or more technically hydraulic fracturing, is a technique for extracting oil and natural gas from shale formations by pumping in water, chemicals and fine sand at high pressure to fracture the rock. This method has drawn the wrath of environmentalists who say it pollutes groundwater and air quality, as well as causing earthquakes. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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