A decade after the US produced shale gas in huge quantities that brought prices down from $11 to less than $3, the UK will start its own production. This will have grave consequences for the natural gas market, given that the UK is estimated to have large quantities of rocks filled with the gas.

But why now? It has been known for a while that Britain and other European countries have vast quantities of the gas, but their productions were either limited, suspended or banned. EU countries impose tough restrictions on shale gas production because of its harmful impact on the environment and overriding the urgent need for gas.

EU imports most of its gas needs from abroad, including 35 per cent from Russia.

In Britain, one gasfield was drilled near Blackpool in Lancaster, but the hydraulic fracturing of rocks caused a tremor that scared residents and polluted the groundwater with chemicals used in fracking. As a result, production was halted.

A month before the UK voted to leave the EU in June, the issue of the shale-gas production surfaced again with new temptations on offer for people in regions where production will take place. Recently, Third Energy UK Gas Ltd got approval to drill a shale gas well for the first time since 2011, with production expected to begin in northeast England before the end of this year.

In fact, Britain has a history of fast and effective impact on global energy markets. Apart from having giant oil companies, the UK surprised the world in the 1980s when it increased output from the oilfields in the North Sea by up to four million barrels a day. By doing so, it led oil prices to fall to less than $7 per barrel in 1986 after they rose to $37 at the start of the decade.

Now, natural gas production in the UK will inevitably have a severe impact on the gas market, which is already suffering from a glut and given that Britain is one of the major gas importers.

According to estimates, renewable energy will take centre stage in the production of electricity instead of gas by 2025, which would be a blow to natural gas exporters, particularly for Iran. In the Arabian Gulf, this problem can be overcome by setting up a unified Gulf gas network similar to the electric grid.

Britain will still have difficulties it needs to overcome, most notably opposition from the local populace. It seems that Theresa May, the Prime Minister, is considering paying compensations to those affected by shale gas projects by transferring a portion of taxes that will be imposed on production companies to a compensation fund called the “Natural Gas Resource Fund”.

The fund will get 10 per cent of the total taxes levied from shale gas production companies. Hence, £10 million (Dh47.63 million) will be given to each community.

The implications for the global gas market are expected to be significant. These changes will increase the degree of complexity and the current competition.

Yet, if other European countries — such as Poland, Germany and France — along with major Asian countries, such as China and India — decide to produce shale gas, these profound effects will not affect the gas markets alone but change the whole structure of the energy markets.

Dr Mohammad Al Asoomi is a UAE economic expert and specialist in economic and social development in the UAE and the GCC countries.