Tax breaks for shale gas industry in United Kingdom
The UK government wants to give tax breaks to firms involved in the shale gas industry.
Shale gas refers to natural gas that is trapped within shale formations. Shales are fine-grained sedimentary rocks that can be rich sources of petroleum and natural gas.
The United Kingdom has large resources of this energy, and for extracting it, the government has outlined plans to help companies, which want to involve in the UK’s nascent shale gas industry.
Plans propose to cut the tax on a part of the income generated from producing shale gas from 62% to 30%. This break would make the UK the most generous regime of the world for shale gas.
But the government has been criticized by the environmentalists, especially Greenpeace which said that communities affected by fracking, which is the technique for extracting shale gas, face a lot of disruption for very little gain.
For Chancellor George Osborne, shale gas is a resource with a “huge potential” for the UK’s energy mix.
According to him, the United Kingdom wants “to create the right conditions for industry to explore and unlock that potential in a way that allows communities to share in the benefits” and to make Britain “the leader of the shale gas revolution because it has the potential to create thousands of jobs and keep energy bills low for millions of people.”
So, UK believes a lot in this new energy resource. Indeed, a recent report from the British Geological Survey estimated there may be 1,300 trillion cubic feet of shale gas present in the north of England alone.
So, will the United Kingdom be the new Eldorado of the Black Gold?