Of 200 fund managers surveyed, 11 per cent said domestic shale gas production would send energy costs “significantly lower” and 48 per cent said there would be a slight cut. Another 36 per cent said it was unlikely to make any difference.
Meanwhile, an analysis in the Financial Times concluded the shale revolution in the US had benefitted consumers more than investors or producers. The sector had been a victim of its own success, pushing gas prices so low companies have seen limited returns.
Nick Lewis, head of trading and market risk at Capital Spreads, told the Telegraph the survey showed “major City investors view shale gas as a possible silver bullet”.
He said: “This is good news for companies such as Cuadrilla Resources, who will be bolstered by the news that fund managers view shale gas exploration as an investment opportunity.”