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US shale gas boom could 'challenge European industry'

20 January 2014 Last updated at 16:25 GMT

The British government's Energy Secretary Ed Davey says the threat of competitiveness that the UK and Europe could face from the US bringing online their shale reserves should not be under-estimated.

"We have to take this issue of industrial competitiveness really seriously. People haven't realised in Britain and Europe that the shale gas effect in America is a real challenge to European industry, British industry," he said.

He also thought it unlikely exploiting shale gas reserves in the UK would lead to lower energy prices.

You can watch the full interview on BBC World News on Tuesday 21 January at 14:30 and 20:30 GMT and on the BBC News Channel at 04:30 GMT and at 00:30 on Wednesday 22 January.

Watch more clips at HARDtalk's website

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