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No time to waste in South Africa’s shale-gas exploration
THE US Energy Information Administration says South Africa has the eighth-largest technically recoverable shale-gas resources in the world. It estimates these resources, located in the Karoo, to be 11-trillion cubic metres. This is huge. Mossgas was developed on the basis of only about 200-billion cubic metres.
The agency estimates that the US has technically recoverable shale-gas resources of 19-trillion cubic metres (number four in the world). The US is by far the world leader in extracting gas and oil from shale. According to the body, this has "revolutionised US oil and natural gas production". Last year, shale provided 29% of US crude-oil production and 40% of its natural gas production. Further development of shale-gas and oil production could help the US meet all of its energy requirements by 2030 — an astonishing turnaround for a country that was for decades the world’s largest oil importer.
Last week, the UK announced important tax concessions to encourage production of its shale-gas and oil resources, which are about one-third of the size of South Africa’s. In return, energy companies will be required to spend £100,000 for every well drilled on benefits in surrounding communities.
The Energy Information Administration warns that turning technically recoverable resources into commercially viable production depends on variations in their geological structure. Economic recoverability also depends upon the costs of extraction and the price received for natural gas. The body warns that small local variations can make gas extraction uneconomic. It calculates that a shale-gas well costing twice as much to develop and producing only half what a typical well in the US does is unlikely to be economically viable at current prices.
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more: http://www.bdlive.co.za/opinion/columnists/2013/07/22/no-time-to-waste-in-south-africas-shale-gas-explorationThe agency estimates that the US has technically recoverable shale-gas resources of 19-trillion cubic metres (number four in the world). The US is by far the world leader in extracting gas and oil from shale. According to the body, this has "revolutionised US oil and natural gas production". Last year, shale provided 29% of US crude-oil production and 40% of its natural gas production. Further development of shale-gas and oil production could help the US meet all of its energy requirements by 2030 — an astonishing turnaround for a country that was for decades the world’s largest oil importer.
Last week, the UK announced important tax concessions to encourage production of its shale-gas and oil resources, which are about one-third of the size of South Africa’s. In return, energy companies will be required to spend £100,000 for every well drilled on benefits in surrounding communities.
The Energy Information Administration warns that turning technically recoverable resources into commercially viable production depends on variations in their geological structure. Economic recoverability also depends upon the costs of extraction and the price received for natural gas. The body warns that small local variations can make gas extraction uneconomic. It calculates that a shale-gas well costing twice as much to develop and producing only half what a typical well in the US does is unlikely to be economically viable at current prices.
...
