David Cameron has issued a warning to Brussels not to stand in the way of Britain exploiting its reserves of shale gas through the controversial practice of fracking.
Addressing the World Economic Forum in Davos, the prime minister said the prospect of developing “cheap and predictable” energy sources could help to attract back to the Europe jobs which had been “off-shored” to the rising economic powers of Asia.
But he warned that the opportunities presented by shale gas – which had helped transform the US economy – could be undermined if the European Union sought to impose unnecessary new regulations.
“To relocate in Europe, businesses will be encouraged by cheap and predictable sources of energy,” he said.
“We should be clear that if the European Union or its member states impose burdensome, unjustified or premature regulatory burdens on shale gas exploration in Europe investors will quickly head elsewhere.
“Oil and gas will still be plentifully produced, but Europe will be dry.”
Mr Cameron acknowledged that there were genuine concerns about fracking, but said that if it was done properly, it could have significant benefits both for the economy and the environment.
“We need the right regulations – such as ensuring that well casings are set at the right depths with tight seals. And governments need to reassure people that nothing would go ahead if there were environmental dangers.
“But if this is done properly, shale gas can actually have lower emissions than imported gas.”
