"The UK government would lose some North Sea tax revenues if global oil prices were lower..."
- Adam Lyons, director in the PwC oil and gas team
The production of shale oil is likely to boost the world economy significantly, especially the U.K. adding up to £800 to each person's economic output in the country, according to a report from accountants PricewaterhouseCoopers. The boost will be mostly provided by lower oil prices, as the world taps into the energy held in shale rock, cutting costs faced by businesses and consumers. As a result, the U.K. economy is expected to jump by an extra 2% to 3.3% or from £30 to £50 billion at today's values by the end of 2035. The report also showed that the global growth could accelerate by 3.7% due to the extra supply of shale oil. However, Russia and the Middle East, which are current major oil exporters, may become significant net losers in the long term, until they will be able to develop their own shale oil resources.
"The UK government would lose some North Sea tax revenues if global oil prices were lower, but with North Sea resources in long-term decline, shale oil and gas present an opportunity to create a new growth engine for UK plc. as well as a new source of tax revenue," said Adam Lyons, director in the PwC oil and gas team and co-author of the report.
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