Research

New figures show benefits and costs to Lancashire from shale exploration

pnr 180426 Ros Wills 1

Lorries queueing at Preston New Road. April 2018 Photo: Ros Wills

Cuadrilla announced today that the Preston New Road shale gas project had generated total spending of £8.6m in Lancashire economy since the start of 2016.

Meanwhile, figures from Lancashire Constabulary show that total costs for policing outside the well site at Preston New Road reached almost £7m by the end of March 2018.

Details of Cuadrilla’s spending in Lancashire are contained in the company’s quarterly “Lancashire Commitments Tracker“.

The latest version showed total spending from the start of 2016 up to the end of March this year.  In addition to the £7.58m spent directly by Cuadrilla in Lancashire, the tracker said the company’s contractors have now spent over £1 million in the local economy.

Cuadrilla tracker Q1 2018

The document also showed that Community Benefits payments by Cuadrilla have now reached the £200k figure promised after drilling two wells at Preston New Road.

Direct and indirect spending by Cuadrilla in the Lancashire economy Q1 2018

With the drilling phase nearing completion, Cudrilla’s direct spend fell by 12.5% over the quarter while the indirect spend from sub-contracting was the lowest recorded.  The total number of Lancashire-based contractors who have worked for the company increased by 5 to 37.

DrillOrDrop report on previous Lancashire Commitments Tracker

Total Policing costs approach £7m

180315 PNR blockade 1

Protest outside Cuadrilla’s Preston New Road site, 15 March 2018. Photo: Reclaim the Power

The latest data from Lancashire Police said the total cost of policing outside the site in the first quarter of 2018 was £1.02m.  This was slightly more than the figure for the first quarter of 2017, but a larger proportion of the costs was accounted for by overtime rather than normal hours (which are shown as Officer Plain Time on the chart).

lancs police figures

Other costs include non-staff costs such as equipment, cars and welfare vans and time.

The total cost of policing outside the Preston New Road site up to the end of March 2018 was £6.94m.

The Government had said it would contribute £1.4m, or around 20% of the bill, leaving the local force to bear the rest of the cost.  DrillOrDrop report

Reaction to the figures

Francis Egan, CEO of Cudrilla, said:Francis Egan 9 Lancashire for Shale

“Having completed drilling the first horizontal well into UK shale, and currently finishing the second, we are delighted that our important exploratory work at Preston New Road has benefited the local economy by nearly £9 million to date.

“We are also very encouraged to see even more businesses in the county registering to work with Cuadrilla via the Supply Chain Portal, especially as working with Lancashire suppliers remains a key priority and commitment for us, and that our suppliers have in turn generated over £1 million of revenue for other Lancashire companies.”

Frack Free Lancashire said:Frack Free Lancashire

“Cuadrilla would do well to consider offsetting their so-called “benefits” into Lancashire’s economy, with the spiralling expenditure that they have created by their imposition onto our community. For example, the policing bill alone has a price tag upwards of £7m and is estimated at nearly double that. Since the government are only returning 20% of this figure, we can clearly see the burden on taxpayers to publicly fund Cuadrilla’s private activities. That alone is a shocking fact.

“We would suggest they should concentrate their PR efforts upon respecting democracy and the crisis that is climate change. Fracking has zero future within the UK’s energy requirements nor its carbon budget. Renewables are our only option for a clean future.”

Lancashire for Shale

Lee Petts, Chair of Lancashire for Shale, said:
“It’s very pleasing to see that Cuadrilla and its contractors continue to favour Lancashire suppliers, and that local spend in the last quarter rose to £8.6 million – dwarfing the additional £2.7 million it’s cost Lancashire taxpayers to police the protests outside the Preston New Road site beyond the pay of those officers that would have been on duty anyway, and accounting for the fact the Home Office is footing £1.4 million of the policing bill too.”
Updated 2/5/2018 to include comment from Lee Petts of Lancashire for Shale

40 replies »

  1. frack free lancashire, [edited by moderator]

    Have you put £9 million into the local economy? No.

    Have you and your group of lefty cooks contributed to the reduced benefits in the local economy? Yes.

    [edited by moderator]

    Cuadrilla can’t win can they?

    • ‘Have you put £9 million into the local economy? No.’
      …..try asking that one again oh ‘call centre’ one…Frack Free Lancashire is made up of many who contribute taxes and employment to the area; unlike some offshore companies from borrowed foreign investment.

      • I highly doubt that it would be anywhere near what Cuadrilla have done in just a few years.

        what have you got against foreign investment? racist are we? 😉

        • Marketing 101:
          How to borrow 7.58 million, spend it, create no revenue and suggest you are a successful business; hilarious

          • ‘I highly doubt that it would be anywhere near what Cuadrilla have done in just a few years’ – ahh let’s see 7.58 million of borrowed money over ten years = 758,000 pa; no problem and real income generated not monopoly money.

    • Imagine how much more money Lancashire would have without the lazy anti-fracking rabble costing it so much money!

      • Simple enough, it is Cuasrilla that caused the entire situation in the first place, this entire disingenuous argument is the old chicken and egg situation, which came first?

        Just remove Cuadrilla from the equation, then it is simple, no costs for policing, which were never needed in the first place and so vastly over staffed for what was required it is frankly just mob handed intimidation, one or two policemen/women would have been more than adequate.

        And if the police attention had been focussed on the real culprit, Cuadrilla, who broke or ignored every rule in the book, then those police would have been better used instead of turning their backs on the real culprit and ignoring their operational failures and contraventions, the police were only concentrating on peaceful protest. No balance, no sense, no reason for them to be there.

        Just removing Cuadrilla comfortably cancels out any such “benefit” which is so doubtfully touted?
        Neatly canceled out, no Cuadrilla, no over manned police presence, everybody happy.
        No problem. Simple logic.
        Answer: Cuasrilla go away, everyone happy.

    • from 1 site, I’d say that actually a good base figure for future developments.

      If the councils would get on with fracking and stop delaying at every possible stage I’m sure there’d be far more.

    • IT’S TIME to put up the BUNTING and crack open the champagne .

      23 Full Time Jobs .

      I wonder how many of them are minimum rates of pay, Security Guard jobs, 16, 18, 20, 22 ????

      From the look of the security around the site , I would hedge my bets on 16 +

  2. would only be about 2,700 wells (instead of the reported 6,000) to create that amount of jobs.

    And there are more to be drilled from this site later anyway. so most likely more jobs from this 1 site.

  3. increase that up to 40 jobs per site, and theres only 1,600 sites needed for these figures to be correct.

    Can’t see that as littering the countryside with well sites.

    • Ridiculous … as if all sites are being operated on (by personnel) at the same time !!? It’s an itinerant workforce with most
      experts being brought in. The dead end jobs will rise and fall in quick succession.

  4. Hi Gregory, don’t get too obsessed by the 64,000 jobs figure – this was de-bunked quite some time ago. It was a crock. At the current rate of one shale gas well every 6 years it may take a very long time to reach your quoted figures. Don’t hold your breath.

    • Waffle, just to be clear, you can’t debunk an estimate. You can disagree with it, but you can’t debunk it. BTW, if you extrapolate the jobs added in the US, you could see the UK add more than 64k jobs with a successful onshore gas industry.

  5. The NIMBYs seem to be at the two polar opposites of society. Either they are pretty affluent and retired or are left wing communists that [edited by moderator] resort to attempting to bring everyone else down to their level. Ie neither give a monkeys about jobs or any form of extra wealth to the local area. Jobs and wealth, no matter how few or how little will always prevail. Not even the antis fictional stories are enough to put them off the scent.
    Keep your eyes on oil and gas prices, the Middle East is starting to reach boiling point.

    • A lot of name calling from the ‘call centre’ tonight; are we a teensy bit jittery with the omission of any revenue figures?

      • ‘about jobs or any form of extra wealth to the local area’ it’s precisely about this that motivates those opposed to fracking; if your dirty industry keeps going it will destroy local business, tourism revenue and decimate the food production revenue from the Fylde in return for a handful of beans.
        Worried about the Middle East, best talk to the governance and their plans to trade in LNG as the future of gas…..

  6. If you can’t accept responsibility for your activities FFL, best to avoid that particular aspect-it only highlights the problem to the two thirds-most of whom are tax payers and will be asked for a police precept!

    Interesting that the second drill is almost complete. That sped along, didn’t it? Must have been assisted by all those lorries kindly shown by Ros., all with lovely clean wheels!

    Strange how the demons seem to evaporate with the passing of time. Maybe that’s why the antis are losing support?

  7. Not to worry GBK. Good old Vlad is sending floating nuclear power stations up into the Arctic so he will be able to keep us supplied with all the fuel we need-at a cost, when he wants to, and will destroy the Arctic.
    But, it is over the horizon, so that is OK. Don’t think we will see too many “locking on” there.

  8. Exactly Martin!

    without ‘organisations’ like FFL the local economy would be far better off now. 85% of residents in the surrounding area were more than happy to take the community benefit payment. Maybe it covered their costs of travelling to PNR or perhaps the cost of some of the bras that were thrown at the protests.

    Got a problem with fracking? take it up with the people making the decisions not the companies following their rules. Leave them to get on with their LEGAL operations and stop your ILLEGAL actions that are slowing this country’s energy security down.

    • Ahh the cult is chanting again and it’s not the sound of the universe; more like an everlasting fart full of methane, try lighting that!

      • Heavens Sherwulfe, what a bizarre cultist display of frack rage spouting from the anti antis today?

        Clearly they are deeply rattled about something? The departure of Sajid Javid to the Home Office maybe and of course also of Amber Rudd out of the door entirely perhaps? I think it only needs a slight push and they will all jump off the deep end into a total meltdown?

        Do you know, i honestly get the feeling that nothing will ever please them? i mean absolutely nothing? They could rule over a totally fracked poisoned world and still be screaming in rage at the colour of the blackened sky and poisoned water whilst jumping up and down on the rooftops?

        Quite worrying really?

    • It’s “PARTY TIME” Gregoryyy

      With 95% , yes 95% of residents being offered the life changing amount of £150.00 .. .. I can see there being a run on high end watches at luxury jewellers in the surrounding areas of PNR.

      Although I can understand that such great sums of cash may be very tempting for some ……

      Refering to the 85% of residents figure that you put forward from the Cuadrilla PR department , that YOU say are, quote, ” more than happy to take the community benefit payment ” THAT IS MISLEADING AND INCORRECT .

      Because Cuadrilla ONLY say that 85% have applied for the payment….. that’s right APPLIED for the payment .

      They could of just as easily said 90% , 95% or even 99% had applied for the payment …. WHO WOULD EVER KNOW THE REAL NUMBER ????

      The REAL PROOF on the matter Greggoryyy will be HOW MANY actual cheques are PAID AND CASHED by the residents……

      LET’S NOW SEE THE REAL PROOF .

  9. Martin, Council Tax precepts towards the provision of local police is not something that council tax payers have any control over and almost every council is already charging the maximum amount allowable as a police precept. The police are short of officers and funding throughout the country. It has nothing to do with fracking, we will still be asked to pay that particular precept. The same goes for other precepts.

    By the way, what makes you think that those not in favour of fracking are losing support?

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