Ineos — a privately owned multi-national chemicals company based in Rolle, Switzerland — has warned that Europe must embrace hydraulic fracturing technology if it wishes to remain competitive with the USA.

Speaking at the recent PolyTalk conference in Brussels, Ineos chairman Jim Ratcliffe said: “The chemicals industry faces dire consequences if Europe does not develop low-cost energy. Europe has invested three times as much in renewable energy as the USA has spent on shale. Europe gets 5% of its energy from renewables, while the USA gets 50% of its energy from shale, so who looks smarter, the Europeans or the Americans?”

Ineos owns polymer and chemicals plants in both Europe and the USA, with roughly two thirds of its manufacturing assets in Europe and one third in the USA. Five years ago, two thirds of its profits came from Europe and one third from the USA, Mr Ratcliffe said.

“Today, well over 70% of our profits come from the USA, and considerably less than one third come from Europe. That is why we’re worried. Gas in Europe is three-times the price of gas in the USA, while electricity is twice the price; labour is also more expensive. We must have competitive energy in Europe.

“Europe has good reserves of shale gas and should follow in the USA’s footsteps. America has drilled 1.1 million wells, and they haven’t had any environmental disasters. Europe needs to look at that quickly because, in 10 years, we’re not going to have a chemicals industry left that consumes electricity. A politician would get nowhere in America if he came up with the notion of sacrificing manufacturing for leading the world on climate change.”