Extracting shale gas would boost tax receipts and aid the UK economy, Mr Osborne said.
But he played down expectations that consumers would see big reductions in prices in evidence to a Lords committee.
David Cameron has previously said it had "real potential" to cut bills.
Speaking to the House of Lords economic affairs committee, Mr Osborne said both he and the prime minister were big supporters of fracking.
But he said he did not want to suggest that the UK would see the kind of price cuts seen in the US - where prices are down by up to 40%. » | Tuesday, February 04, 2014