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City survey shows majority of fund managers believe shale gas will cut UK energy bills

07 January 2014

The majority of city fund managers believe UK shale gas will cut energy bills, according to a survey by Capital Spreads. The spread-betting and FX company surveyed 200 fund managers and 11% said domestic shale gas production would send energy costs “significantly lower” and 48% said there would be a slight cut. Another 36% said it was unlikely to make any difference.

Meanwhile, 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 Daily Telegraph the survey showed “major City investors view shale gas as a possible silver bullet”.

The polled fund managers have a collective £6 trillion ($10) in assets under management, and 68% of them believe that worldwide shale gas production will transform global energy markets, although 50% say that will not happen until 2015 and beyond.

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