Shale gas production could add between 1.7 and 3.8 trillion euros to Europe’s economy between 2020 and 2050, according to a new report.

Carried out by independent consultancies Poyry and Cambridge Econometrics, the study states that the development of shale gas in Europe could add up to one million jobs to the economy, make industry more competitive and decrease the region’s dependence on energy imports.

According to the analysis, shale gas operations could trigger the creation of between 400,000 and 800,000 new jobs by 2035, and between 600,000 to 1.1 million by 2050.shale gas

It adds that domestic production could reduce dependence on gas imports to between 62 per cent and 78 per cent, down from an otherwise predicted 89 per cent of demand in 2035.

And the study states: “The less Europe spends on energy imports, the more it can invest internally, stimulating national and local economies. Between 2020 and 2050, investment in the EU could increase by 191 billion euros, while tax revenues could increase by 1.2 trillion euros.”

The report was commissioned by the International Association of Oil and Gas Producers (OGP) – both Poyry and Cambridge Econometrics stress that their findings are truly independent – and Roland Festor, OGP’s EU affairs director, said: “Europe is still in a period of difficult economic and social recovery. This new study shows that shale gas production could have significant economic benefits.”

“While it may not be a game changer as in the United States, shale gas development in Europe could take full advantage of the lessons learned,” he added.

“We cannot afford to forego such an opportunity; every cubic meter of gas produced from EU shale resources means one cubic meter less of imported gas. That would translate into more jobs, more disposable income, better security of supply and ultimately more prosperity.”

Click here for the full study

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