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OIL AND GAS
Scottish government frustrated by British shale regulations
by Daniel J. Graeber
Edinburgh, Scotland (UPI) Sep 26, 2014


API: Study on shale boom validates industry stance
Washington (UPI) Sep 25, 2014 - A study finding the U.S. energy boom is reaching other economic sectors gives credibility to the industry's stance, the American Petroleum Institute said.

A study from IHS Global Insight, commissioned by the Energy Equipment and Infrastructure Alliance, finds total labor income generated by employment in industries across many aspects of the energy sector supply chain could reach $60 billion in 2025. That's a 46 percent increase from 2012.

"America's rise as an energy superpower is creating an economic ripple effect of fast-paced growth, higher wages, and new jobs," API Vice President for Economic Policy Kyle Isakower said in a statement Wednesday. "API released its own survey of 30,000 vendors and supporting businesses in every single state that that help deliver affordable energy to U.S. consumers."

IHS found the growth spurred by developments in shale drilling technology is offsetting some of the market declines from the last economic recession. API in July found states without much oil production, like Florida, could see as much as $1 billion in economic gains by 2020 because of the boom.

Shale oil and natural gas developments are behind exponential growth in economies in states like North Dakota. A corresponding increase in violent crime there has prompted state authorities to issue an appeal for federal assistance.

Developing unconventional resources like shale oil and natural gas should proceed only under a strict regulatory regime, the Scottish government said.

Edinburgh said it was frustrated with British policies that would allow oil and gas companies to use hydraulic fracturing in subsurface areas far below private residences without a right of access agreement.

The British government said its fledgling shale industry could be a strong part of a low-carbon energy strategy that includes one of the more robust offshore wind energy sectors in the world.

The Scottish government, which has one of the most ambitious renewable energy targets globally, said the policy on shale was an example of British overreach.

"Unconventional oil and gas developments should only ever happen under a robust regulatory regime, and the Scottish Government takes this issue particularly seriously," Scottish Energy Minister Fergus Ewing said in a Thursday statement.

The Scottish government has put pressure on its British counterparts after a failed bid for independence. Ewing argued for a more diluted power structure when it comes to the energy sector.

"We strongly believe that decisions on oil and gas drilling should be made by the people who live in Scotland, through the parliament and government they elected," he said.

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