INEOS Plans £2.5 billion shale gas giveaway
INEOS, one of the world’s largest chemicals company, has announced plans to give 6% of its Shale gas revenues to homeowners, landowners & communities who live above its Shale gas operations.
INEOS anticipates being a major player in the Shale gas industry and believes it will give away over £2.5 billion over the life of its business.
The sharing of Shale gas profits is commonplace in the USA and INEOS believes this will encourage communities to support shale gas production in their neighbourhoods.
Jim Ratcliffe, INEOS founder and chairman says, “We think this is a game changer for Britain. Giving 6% of the revenues to those living above our Shale gas operations will give them a real stake in the success of the venture and encourage the development of the whole Shale gas industry”.
Typically, those living in a Shale gas community (approximately 100 square kilometers) would benefit from the output of 200 wells and split £375 million between them.
Home and landowners directly above the wells would share £250 million.
The rest of an INEOS Shale gas community would share £125 million between them, making a substantial contribution towards new schools, parks, community centres and even hospitals.
Over the lifetime of a single well, home and land owners would get over £1.3 million and the community £600,000.
Jim Ratcliffe adds, “Giving 6% of revenues to those directly above Shale gas wells means the rewards are fairly shared by everyone. It’s what they do in the USA and we think it is right to do this here. It democratises the Shale gas revolution”.
INEOS is one of very few businesses that can use Shale gas as both a fuel and a feedstock in its manufacturing plants. It is already spending hundreds of millions of pounds to import large quantities of Shale gas from the USA to its Grangemouth facility in Scotland, a necessity as the availability of gas in the North Sea has declined.
INEOS believes that a UK Shale gas industry could create thousands of direct new jobs and tens of thousands of indirect new jobs.
UK shale has the potential to make up a significant proportion if not the totality of UK gas requirements going forward. This would give the UK energy security for the first time in many years. Shale gas also produces approximately half the greenhouse gas of coal and so has the potential to significantly reduce UK greenhouse gas emissions.
INEOS believes that its exemplary safety and environmental track record at petrochemical plants across the world will give people confidence in its ability to safely extract the gas. Most recently, INEOS hired three of the world’s leading Shale gas experts to further strengthen its onshore gas credentials.
Jim Ratcliffe says, “It is extremely important that people know that Shale gas can be extracted, transported and processed safely and in an environmentally responsible way. INEOS is a company used to dealing with complex petrochemical processes and we have now hired some of the world’s leading Shale gas experts to further strengthen our sub-surface team. With INEOS, people can be confident that they will not only get a fair share of the rewards but that everything will be done to the highest possible standards”.