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99p petrol will not last forever

The current low oil price has led some to question whether UK shale development is economically viable. This concern would appear unjustified, considering investment decisions will be based on gas prices in the 2020s by which time prices are likely to rise. Moreover, the cost of transporting gas by LNG tanker can add up to 50% to the cost, offering a further reason for promoting UK shale gas development.

The Government must continue to prepare the ground for UK shale development in the 2020s by ensuring that exploratory drilling takes place by the end of this year. More than 80% of UK homes are heated by gas and modelling by the Department for Energy and Climate Change suggests that the UK will need 26GW of new gas capacity by 2030. Without indigenous shale production, around 75% of the UK’s gas will need to be imported. 

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99p petrol will not last forever

Daniel Mahoney & Tim Knox - Tuesday 26th January 2016

Daniel joined the Centre for Policy Studies as Head of Economic Research in November 2015. He was promoted to Deputy Director in March 2017. Prior to joining the CPS, he worked in research roles for a number of parliamentarians.

Tim Knox was Director of the CPS from 2011-2017. Before he was Director, Tim was the Editor at the CPS - a position in which he was responsible for publishing papers by every Conservative leader since Mrs Thatcher as well as by hundreds of leading academics and opinion formers.