Sep 17, 2012
Shale gas to ‘dramatically’ change global energy sceneBack
Johannesburg|Africa|CoAL|Consulting|Environment|Exploration|Gas|Mining|Nuclear|Oil-and-gas|Power|Renewable Energy|Renewable-Energy|Resources|Water|Africa|Asia|Europe|North America|China|Japan|Russia|South Africa|United States|Chemical|Chemicals|Complimentary Electricity Source|Discovered Shale Gas Reserves|Electricity Supply|Energy|Energy Assets|Energy Markets|Energy Scene|Energy Source|Insatiable Energy Needs|Manufacturing|Natural Gas|Oil And Gas|Recoverable Shale Gas Reserves|Renewable Energy|Service|Shale Gas|Shale Gas Development|Shale Gas Extraction|Shale Gas Production|Shale Gas Resources|Shale-gas Licence Applications|Solutions|Dominic Goncalves|Michael Mbogoro|Middle East|Fracturing|Wastewater Treatment
South Africa, which has the fifth-highest estimated technically recoverable shale gas reserves in the world, recently lifted its 18-month moratorium on shale gas development.
The Department of Mineral Resources stated that it would consider shale-gas licence applications for the Karoo basin, but that actual hydraulic fracturing, or fracking, would be prohibited until mining regulations had been adapted.
While no timeframes were provided for the possible start of fracking activities, Frost & Sullivan estimated that if exploration and pilot studies were to get under way soon, commercial development could start in the next seven to nine years.
“Although this development will fall outside of South Africa’s current critical electricity supply, shale gas as a feedstock post-2020 could become a complimentary electricity source with renewable energy, as the country weans itself from coal,” Goncalves stated.
F&S consulting analyst Michael Mbogoro said that the development of shale resources was set to “dramatically change” the current energy landscape globally. But opponents to shale gas extraction argue that fracking is unsustainable, water thirsty and damaging to the environment.
In a new study by the research firm titled ‘Analysis of the Global Shale Gas Market’, it is stated that newly discovered shale gas reserves around the world were likely to promote consumption of gas as an energy source and an affordable feedstock for a wide variety of chemicals and materials.
The study further suggested that Europe would, in the long term, decrease its dependence on supplies from Russia and the Middle East, thus reducing their dominance in energy markets. This was likely to give rise to new geopolitical alliances at the expense of the old.
North American natural gas prices were found to be the lowest globally and chemical companies were fuelling a revival of the US manufacturing sector by capitalising on this cheap supply.
The report also found that opportunities existed for companies that produced hydraulic fracturing chemicals, as well as for wastewater treatment companies, owing to the high volumes of water consumed in shale gas production.
"The market is dominated by large energy service companies that enjoy close relationships with oil and gas participants. However, chemical companies still have a significant market share. Gelling agents are the major fracturing chemicals by volume, followed by friction reducers and corrosion inhibitors."
As a result of the significant volumes of water needed for shale gas production and increased regulations limiting toxicity levels in wastewater, innovative firms could tap into a market with promising growth prospects over the next 20 years.
Meanwhile, owing to increased shale gas production in North America, demand for gelling chemicals, such as guar gum, has risen, resulting in severe global shortages and high prices.
Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
To subscribe email email@example.com or click here
To advertise email firstname.lastname@example.org or click here
Other Energy News
Updated 6 hours ago A new World Bank report warns that some regions of the world, including parts of Africa, could see their growth rates decline by as much as 6% by 2050 as a result of water-related losses, with water scarcity also exacerbated by climate change. Titled ‘High and Dry:...
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...