http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 17, 2012

Shale gas to ‘dramatically’ change global energy scene

Back
Johannesburg|Africa|CoAL|Consulting|Environment|Exploration|Nuclear|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|Mining|Natural Gas|Nuclear|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|Power|Water|Middle East|Fracturing|Wastewater Treatment
|Africa|CoAL|Consulting|Environment|Exploration|Nuclear|Renewable Energy|Renewable-Energy|Resources|Water|Africa|||Energy|Manufacturing|Mining|Nuclear|Oil And Gas|Service|Solutions|Power|Water||
johannesburg|africa-company|coal|consulting-company|environment|exploration|nuclear-company|renewable-energy|renewable-energy-company|resources|water-company|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|mining|natural-gas|nuclear-industry-term|oil-and-gas|recoverable-shale-gas-reserves|renewable-energy-industry-term|service|shale-gas|shale-gas-development|shale-gas-extraction|shale-gas-production|shale-gas-resources|shale-gas-licence-applications|solutions|dominic-goncalves|michael-mbogoro|power|water|middle-east|fracturing|wastewater-treatment
© Reuse this



JOHANNESBURG (miningweekly.com) – The development of shale gas resources is set to “dramatically” change the energy scene globally and, if managed effectively and responsibly, it could provide an affordable feedstock for cleaner burning gas-fired power plants in South Africa, Frost & Sullivan (F&S) energy and power industry analyst Dominic Goncalves said on Monday.

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.

The majority of demand in Asia was anticipated to come from China and Japan, following China’s insatiable energy needs and Japan’s expected increased dependence on natural gas following the Fukushima nuclear disaster.

Further, large chemical companies were shifting investment patterns to exploit the rich shale gas reserves in the US, at the expense of the Middle East and other natural gas-rich regions.

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 hydraulic fracturing chemicals market is projected to grow by approximately 10% yearly through to 2020,” Mbogoro explained.

"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."

While some chemicals were commoditised, innovative solutions to water treatment continued to emerge.

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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Energy News
Article contains comments
South Africa’s national oil company PetroSA produced 14% less refined product in 2013/14 than budgeted, owing to diminishing gas feedstock. The State-owned group also warned that that inadequate feedstock would remain a constraint on its future performance. The...
Total CEO Christophe de Margerie
The CE of French oil major Total, Christophe de Margerie, was killed when a business jet collided with a snow plough during takeoff at Moscow's Vnukovo International Airport, the company and airport officials said. The collision occurred late on Monday, just minutes...
Energy company Shell has handed over rare, high-quality three-dimensional (3D) seismic data, collected off the west coast of South Africa, to the universities of the Western Cape and Cape Town to be used for the advancement of research and skills development relevant...
Article contains comments
More
 
 
Latest News
Updated 11 minutes ago The majority of the 41 signatory countries to the Organisation for Economic Cooperation and Development’s (OECD’s) Anti-Bribery Convention, adopted in 1997, have failed to clamp down on foreign bribery activities. Fifteen years after its implementation, only four...
President Jacob Zuma
Updated 46 minutes ago President Jacob Zuma on Thursday revealed the composition of the new team of Ministers and business proponents set to lead the Presidential Black Economic Empowerment Advisory Council. Trade and Industry Minister Dr Rob Davies, Minister in the Presidency responsible...
Updated 48 minutes ago Cabinet on Wednesday approved the retention of South African Airways (SAA) chairperson Duduzile Myeni and nonexecutive director Yakhe Kwinana, while also approving the appointment of Dr John Tambi and Anthony Dixon as board members at the troubled national carrier....
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks