Chief Treasury Secretary Danny Alexander has urged Scottish energy firms to cash-in on the new shale gas industry south of the border.
The Inverness MP said there could be major opportunities if the “innovation and ingenuity” in the North Sea sector can be applied to shale gas.
He made the call after the British Geological Survey said yesterday that there may be 1,300 trillion cubic feet of shale gas present in the north of England – double the previous estimate.
Mr Alexander announced details of £100billion of new infrastructure spending in the Commons, a day after £11.5billion of cuts were revealed for 2015/16, with much of the money to boost energy and transport investment.
A package of measures to encourage shale gas production was unveiled, including tax breaks and cash incentives for affected communities.
Shale gas, which is natural gas trapped in rock, has become a key resource in the US, but the “fracking” extraction technique is controversial.
Speaking to journalists at the Treasury yesterday, Mr Alexander said: “I think it’s definitely the case that the skills that companies in Scotland have built up in extracting North Sea oil, and individuals have built up in Scotland, are very applicable to the shale gas sector.
“We’re obviously encouraging that sector to get going in the UK, and I would really encourage Scottish companies to look for opportunities in that area.
“I think the innovation and ingenuity that Scottish engineers have shown in the North Sea is something that could well be of huge benefit as we seek to exploit this new resource, and do so in the right way.”
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