British Gas joins controversial shale gas hunt
British Gas joins controversial shale gas hunt British Gas owner Centrica is entering the controversial shale gas business as part of its strategy to double the size of its North American operation, Direct Energy, to a turnover of £12.2 billion within five years. US gas reserves have risen by a third almost overnight and the Department of Energy believes shale gas could meet half the country's gas demands within two decades. Some optimists predict the US will become a gas exporter.
It is likely that the energy giant will either enter a joint venture or acquire a company with the skills to extract the gas from soft shale rock found in North America.
Chris Weston, Direct Energy's new chief executive, told analysts last month: 'We are interested in shale gas - it is a phenomenon.'
But environmentalists say pumping water into the rocks to extract the gas could contaminate the water table.
Centrica is prepared to invest about £1.5 billion over the next few years in the US, where it has five million customers.
11th April, 2010
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