A PETROCHEMICAL industry boss has warned the sector must look at fracking to quell fears over the deepening oil price crisis.

Dr Stan Higgins,chief executive at the North East Process Industry Cluster (Nepic), says firms have to re-assess energy provision as oil remains below $50 a barrel.

Dr Higgins said extracting shale gas, which uses a process known as fracking, is one way companies can maintain supply while stabilising the economy.

The technique drills into rock to extract gas, but has attracted criticism from campaigners who claim it damages the environment.

Dr Higgins’ warning follows an announcement last year by Sabic, which said it would join the shale gas revolution by converting its cracker plant, at Wilton, near Redcar, to run on ethane imported from the US.

He said: “The petrochemical industry globally is undergoing change at an ever increasing rate.

“The sooner we extract our own shale gas and energy from underground coal gasification the better and more stable our own economy will be.

“We have already seen this impact on us in Teesside with Sabic announcing a new ethane terminal.

“Chemical companies are the piggy in the middle of the economic uncertainty because their direct customers who see a fall in oil prices tend to assume this should lead to a similar fall in their costs.

“Whether we like it or not, we are all part of the world’s economy where those countries that have control of their own raw materials and energy can have huge impacts on our local industry.”

The growing focus on shale gas saw the Government last year unveil plans for a National Centre for Oil and Gas, which ministers’ said could create more than 60,000 supply chain jobs.

The vision includes Redcar and Cleveland College, which will be one of three colleges supporting the National Centre, delivering courses on areas such as drilling, petroleum engineering and pipeline engineering.

The college is working on a £7.4m oil and gas training academy to train the next generation, with the National College expected to start operating by the 2016-2017 school year.