Shale Gas Go-Ahead Would Benefit UK Business Sectors

Sectors associated with extractive industry stood to win if shale gas mining goes ahead on a large scale, a London seminar has heard.

Water treatment firms and compliance advisers are two which could benefit, according to Bruce Jenkyn-Jones of Impax Asset Management. The infrastructure surrounding shale extraction would present new investment opportunities.

A go-ahead for concerted shale gas extraction – on which the British government is due to decide – would also usher in a new regulatory framework, and the need to be expert in this.

“Expanded natural gas production is dramatically changing the US energy and environmental markets and will have major implications for the world’s future energy supply and its security,” he said. Impax, which specialises in water, waste and alternative energy, identified four main areas for growth in a dedicated shale environment. Apart from waste water management, these are in testing, general hazardous waste and environmental consultancies.

“Some of the best investment opportunities arising from the shale revolution are in the suppliers helping the industry to operate more efficiently, reduce pollution and meet increasingly strict environmental controls. We could be about to witness a modern day equivalent of selling shovels during the gold rush.”

The seminar noted that the prospect of cheap and plentiful gas presents a challenge to renewables. However, the longer term implications of the increased use of gas will lead to far greater flexibility in power generation. This would particularly apply to wind and solar as new gas plants can be brought online swiftly to supply peak capacity when needed.

The British Government placed a temporary ban on fracking (hydraulic fracturing), the technique for extracting shale gas deposits, after apparent seismic activity near Blackpool last year.