Major oil companies ‘beginning to take note’ of UK shale gas opportunities, says Eversheds

Elizabeth Shepherd, renewable energy expert at Eversheds, has commented on the UK government’s latest announcement on shale gas incentives.

Shepherd said that the announcement that local authorities will receive all business rates from shale gas schemes, as well as an industry-pledged one-per-cent share in the profits and £100,000 per well, is indication that the government is serious about ensuring local communities receive a direct and tangible benefit from shale gas exploitation.

She continued: ‘It is understood an increase in the share of profit communities will receive is also up for discussion, with the chair of the Local Government Association Environment and Housing Board calling for the pledge to become legally binding to reassure communities that they will benefit.

‘This is another aspect of the government’s drive to facilitate and encourage shale gas development in the UK. With Total’s announcement of its £30m investment plans [being the first oil major to enter the UK shale sector], major oil companies are beginning to take note.’