UKOOG comment on OFGEM October price increase
26th August 2022
Charles McAllister, Director of UKOOG said:
"Today OFGEM have announced that UK households will pay £3,549 on a typical annual energy bill, marking a more than trebling in energy bills since 2020. These spiralling prices and the threat of gas shortages this winter paint a stark picture.
Shale gas under our feet presents a timely, land efficient solution to our future energy needs and could be instrumental in delivering lower cost and lower carbon energy to British Households. UK shale can reduce bills by lessening the extent of the UK’s exposure to the international spot market for gas delivery and reduce bills locally through our local community benefits package.
2021 marked the lowest level of UK energy production for over 50 years, with the UK recording a 57% natural gas import dependency. Based on gas prices experienced this year, the UK could send £1 trillion overseas by 2050 to meet its natural gas demand unless the UK Government act to encourage more domestic natural gas production. Continuing to compete with 42 other countries for liquefied natural gas tankers poses material risks of high prices for consumers, as well as pushing up our gas supply carbon footprint.
The potential natural gas reserves onshore are sufficient to meet UK demand for 50 years. The exploitation of this abundant British energy source would see billions of pounds of investment into the North of England, creating tens of thousands of new jobs alongside billions in taxes and local community benefits. Households local to shale gas sites will get a share of revenue from production, which can be used for whatever local needs may be.
Polling conducted by YouGov showed that a majority of residents in the North of England would support shale gas production in their local area if they got 25% off their energy bills, which our community benefits package can deliver.
The Government should act on precedent during times of crisis and facilitate the growth of the onshore oil and gas industry, including lifting the moratorium on hydraulic fracturing as soon as possible and streamlining the regulatory framework to unlock this much needed resource."
For media requests please contact Charles
Tel: 0203 3975 637