Britain’s £50 Billion chemical industry has stated fracking for shale gas is of economic importance to the country, will protect jobs and can be done in a safe way that does not damage the environment.

Steve Elliott, the Association’s Chief Executive said: “The more we look at this the more we can appreciate there is an economic, social and environmental case for starting work on extracting shale gas. Rather than rely on imported gas, the UK’s own shale reserves will contribute to more secure gas supplies and support jobs and growth.   Without this, gas imports are projected to reach 75% of needs by 2030.  UK shale gas will help to keep the lights on while the UK makes its transition to a green economy”

On the economy he said “The development of UK shale gas will make the UK less vulnerable to supply uncertainty and price volatility and contribute to economic growth.  Both from the operators who develop UK shale gas and other industries up and down the supply chain.  For the £50bn chemical sector, it will provide more secure and potentially competitive source of gas for use both as fuel  and feedstock (raw material) at a time when supplies from the North Sea are dwindling.  This could help to close our competitiveness gap with other locations, like the US, whose shale gas boom is supporting over $100bn investment in chemicals production capacity by 2020.

On social aspects Elliott said “In my industry this will retain current jobs in areas of the country where frankly communities need more employment (the chemical sector provides direct and indirect employment for 500,000). The shale developers will also provide benefits to local communities, based on what they can produce. We have already seen proposals from leading chemical company Ineos”.

On the transition to a green economy he added: “Gas is also better for the environment. It’s a low carbon energy source relative to the other conventional sources of hydrocarbon like coal and oil which are being phased out as fuels for electricity generation.  Gas will be needed to help to fill the gap and back-up intermittent renewable power for some time.  Gas also provides the main source of heat in our chemical processes. Alternatives will take some time to develop.  In the meantime the UK chemical industry continuously seeks to save energy and has improved its energy efficiency by 35% since 1990.  And our products and technologies also provide carbon reduction solutions in other sectors like insulation and double glazing for homes, materials for wind turbines, and light-weight materials for cars.”

Continuing on the environment the Elliott said  “it is vital that communities can be confident that shale gas can be developed in the UK in an environmentally safe way.  But there is reassuring evidence from government and independent expert bodies like the Royal Society and Committee on Climate Change which addresses concerns on key issues including seismic activity, water use, impacts on ground water and emissions, and the use of chemicals in fracking fluid.  The UK has a strong regulatory framework for shale gas development and can learn from the experience in the US. ”

On the latest developments in Parliament, Elliott said ”Some of the measures will help, and others will make it more difficult. Nonetheless let’s get started and see what we can do”

Elliott concluded “the UK has the technical ability, scientific knowledge, safety competence and environmental responsibility to meet our own energy needs for this generation and those that follow. If we do not take this opportunity, then we not only run the risk of power cuts for business and homes but also losing well-paid and sustainable jobs in parts of the country that can ill-afford to lose them.  Extracting shale gas will ultimately facilitate the low carbon economy we all want. Our country has many environment and safety challenges, of which shale gas is one - but it is one that I am confident we have the answers to.

Ends

Notes to Editors:

For further comment, please contact Lena Nunkoo 07951 388 919 or Simon Marsh 07951 389197

View the video on Facts about shale gas http://www.youtube.com/watch?v=M4215xX8UpE

View ‘Shale Gas the Facts’ publication http://bit.ly/1doFoES

Chemical Industries Association (CIA) is the organisation that represents chemical and pharmaceutical businesses throughout the UK www.cia.org.uk