Government support for shale gas development

The Chancellor, George Osborne, in his 2013 Budget today made a number of announcements relating to shale gas. In keeping with his previous statements, today’s announcements are intended to encourage shale gas production in the UK.

In a move to create what he described as “a generous new tax regime” for shale gas development, the Chancellor announced a new shale gas field allowance to promote early investment.

The Chancellor stated that he wanted to see local communities benefit from shale gas production, echoing the comments of energy minister John Hayes earlier this week. New planning guidance and specific proposals on how this will take place will be announced by the summer.

The Chancellor stated that the move to a low carbon economy should also create jobs, and showed his support for the development of shale gas as a new low-cost source of energy in the UK.

As he finished his statement on shale gas the Chancellor demonstrated the Government’s support for shale gas by saying that “shale gas is part of the future, and we will make it happen.”

The Chancellor’s budget will be welcomed by the industry as a clear statement that the Government is supportive of shale gas and committed to encouraging its development in the UK. It also sends the clear message that the Government is keen to diversify the UK’s energy mix by developing shale gas resources.