British shale gas production will cut energy bills, according to a major survey of leading City fund managers.
In a boost for shale explorers and consumers alike, a poll of 200 fund managers with a collective $10 trillion (£6 trillion) in assets under management reveals widespread confidence in the potential of UK shale gas.
George Osborne, the Chancellor, has introduced generous tax breaks for shale explorers, saying he does not want Britain to be left behind as gas prices tumble from the shale gas boom in the US.
But opinion is divided over whether even major UK shale production could lower prices, with Ed Davey, the Energy Secretary, suggesting it is unlikely to do so given the size of the European gas market.
The research, conducted by Capital Spreads, the spread-betting and FX company, reveals that 59pc of fund
Some 48pc say it will lead to a slight cut, while 11pc say it could see energy costs fall “significantly lower”.