LONDON, July 30 Government incentives for
affected communities must be followed up by education and job
creation to convince a sceptical British public that fracking
for shale oil and gas is right, according to a survey of
Some 70 per cent of almost 200 respondents to the survey by
data provider Rigzone believe the British government was right
to offer incentives to communities where hydraulic fracturing,
known as fracking, and horizontal drilling will be used.
But 51 per cent believed this will not be enough to win the
None of the respondents flagged the need to provide
additional incentives to exploration companies, Rigzone said.
The government proposed earlier this month that tax payable
on income from shale production should be 30 percent - down from
from 62 percent for traditional oil and gas.
For the communities, the industry will have to provide
100,000 pounds($152,000) in benefits and 1 percent of the
revenue from each production site, the government has said.
Education on the economic benefits of the technology
followed by job creation were viewed as the two most important
messages to promote now, the survey found.
Industry estimates suggest Britain may have major shale
reserves which could help reverse a rising dependency on energy
imports, but the industry is having to tread carefully to
reassure the public and a vocal environmental lobby.
Opponents see fracking, which forces sand and fluid into
shale rocks deep below the surface, as potentially damaging to
the environment and to water supplies.
"In the U.S., shale gas extraction has helped stimulate a
low cost energy boom that has seen the cost of natural gas
effectively drop by 50 per cent since 2007," said Dominic
Simpson, Head of Sales of Rigzone in EMEA and APAC regions.
"For the UK to reap a shale gas dividend, it is clear more
will need to be done to win the public debate and ensure
exploration companies pursue the sizeable onshore market
On Thursday last week protests blocked access to a drilling
site in southern England as part of a campaign against fracking.
The drilling company, Cuadrilla Resources, has said it got
deliveries through over the weekend and hopes to start drilling
The well in question is not due to be fracked, but Cuadrilla
has used the technology elsewhere and holds more shale acreage,
so has become a target for protestors.
Rigzone said it surveyed UK-based oil and gas professionals
between July 2 to July 8. Nearly 200 responded, with 21 per cent
at organizations that have fracking-related operations in Europe
and another 13 per cent with operations in another part of the
(Reporting by Andrew Callus and Oleg Vukmanovic; Editing by