Shale gas discovery holds major potential

According to a new report,
South Africa’s southern Karoo
basin could be holding up to
485 trillion cubic feet (tcf) of
shale gas reserves – potentially
the world’s fifth largest
reserves.
“This long-term project
could significantly turn the
country’s economic fortunes
around by easing the energy
deficit and making it cheaper
for the country to grow and
ensuring a stable electricity
supply,” said Anton Niemann,
general manager commercial
lubricants Shell Downstream
SA.
Econometrix, South
Africa’s largest independent
macro-economic consultancy,
has released a study on the
potential economic and
employment benefits of
a successful natural gas
development in the southern
Karoo basin. The report
focuses on two conservative
scenarios: 20 trillion cubic
feet (tcf) and 50 tcf. The
US Energy Information
Administration (EIA) has
previously estimated the
potential shale gas resources
in South Africa to be around
485 tcf.
Bonang Mohale, chairman
of Shell South Africa, said:
“This report clearly shows
the substantial economic and
job creation benefits to South
Africa should economically
viable gas resources exist in
the Karoo. The shale under the
Karoo may well provide the
game-changing opportunity
that South Africa needs. But
the only way of conclusively
establishing what lies below
the Karoo basin is for
exploration to go ahead.
“This study is a critical
part of our commitment to
provide South Africans with
factual, statistical evidence
that demonstrates the kind
of potential that natural gas
development can unlock for
the country. If exploration
confirmed there was 20 tcf
in the Karoo that could be
commercially produced, this
would have the potential to
supply more than half of all our
energy needs in South Africa
for 20 years at current capacity.
“Shell remains committed
to a continued dialogue with
all parties on the potential
development of natural gas
resources.”
The Econometrix report
estimates that a relatively
conservative find of 20tcf
could have an annual economic
impact of R80 billion and at
50tcf the impact on the South
African economy could be as
high as R200 billion.
CAPTION
This southern Karoo basin could hold the world’s fifth
largest shale gas reserves