Who Is Jim Ratcliffe? And Why Is He Kick-Starting Fracking in the UK?

Founder and owner of the UK’s largest chemical company, Ineos, billionaire Jim Ratcliffe believes that he is the man to kick-start the fracking industry in the UK. He previously featured on Petro Industry News when Grangemouth oil refinery faced closures over worker cuts.

For the privately-owned multinational company, fracking (the technique of extracting shale gas from rock also known as hydraulic fracturing) will be a first; until now, Ineos have made their billions through chemical manufacturing. However, Ratcliffe is confident that his company will be able to unlock the UK’s shale gas resources on a national scale with his three newly-hired experienced executives from the US.

During a recent presentation in London in which the company unveiled plans to invest £640m in fracking, Ratcliffe said that he believes that fracking is essential to tackling high energy prices which not only hurt consumers but wipe out energy manufacturing companies.

“I don’t think the UK is in a great place for energy – nor for manufacturing … we are buying the most expensive electricity in Europe. Shale has the ability to change that.” Ratcliffe said.

UK Government backs Ratcliffe’s fracking plans

Despite controversy in 2010 when Ineos moved its headquarters and tax residence to Switzerland, the company has been granted two exploration permits in the UK, and has applied for a number of others in the north of England and Scotland. Ratcliffe is hopeful that the company’s previous offer of pumping 6% of all revenues into local communities will curb any opposition to their plans.

The coalition government, however, are extremely pleased with Ineos’ proposition, having always firmly supported the fracking industry. The prime minister, David Cameron, declared that the government was “going all out for shale”, and energy minister, Matt Hancock was even more welcoming, stating, “I am delighted to welcome the £640m Ineos investment in UK shale gas. [It is] a strong stride forward for this important domestic energy source and jobs.”

Will fracking put an end to the UK’s high energy prices?

While Ineos and the government speculate that shale energy will put an end to high energy prices in the UK, scientists at the UK Energy Research Centre (UKERC) remain sceptical, and have reported to the BBC that promises of lower energy prices and greater energy security from fracking is lacking in evidence. UKERC research director, Professor Jim Watson said, “It is very frustrating to keep hearing that shale gas is going to solve our energy problems – there’s no evidence for that whatsoever, it’s hype.”

Greenpeace UK’s energy campaigner, Simon Clydesdale has also spoken of the organisation’s scepticism, stating, “Ineos have jumped on a spin-powered bandwagon which is going nowhere. Independent academics recently called out government ministers over the ludicrous levels of hype around shale gas, saying ‘shale gas has been completely oversold’. It seems that Ineos have based their business plan on breathless PR brochures rather than scientific reports.”