follow us like us subscribe contact us
Loading, please wait

SOUTH AFRICA: Shale Gas Permits Remain Elusive

By Editorial Dept | Fri, 26 April 2013 17:49 | 0

Bottom Line: Despite high hopes, South Africa shale gas permits are not likely to be forthcoming this year for E&P companies, bound up as they are in a wash of legal appeals by environmental groups.

Analysis: While the South African government is moving to pave the way for the issuance of shale gas permits, having lifted the moratorium on hydraulic fracturing in September, challenges in court by environmentalists are certain to delay this process and keep permits on hold for the time being.

In 2011, Shell applied for permits to drill 24 exploratory wells in western South Africa, at Karoo, which is estimated to hold up to 485 trillion cubic feet of shale resources. But moratorium-lifting aside, the process is far from over. It won’t be until July that the government completes its draft study on fracking, which then will be brought up for public consultation. The public is definitely not fully on board, either, with fairly strong environmental groups supported by landowners, opposed and vowing to fight the process.

Recommendation: Companies like Chevron and partner Falcon Oil & Gas Ltd. (FO), which says it expects to start exploration in the second half of this year, are being overly optimistic in the face of their shareholders. The regulations are not yet in place for fracking, though the moratorium has been lifted, and we believe environmental groups will successfully challenge the process for some time. While these groups are not likely…

To read the rest of this article Start a FREE subscription to our premium publication

Oil & Energy Insider - 30 day Free trial

30 day Free trial
A FREE Subscription Includes:
  • Investment advice normally reserved for hedge fund clients.
  • Market & sector research not available anywhere else.
  • Strategic advice from corporate & military intelligence analysts.
  • 9 Weekly Investment / intelligence reports.
  • Full access to all previous reports.
  • 30 days free trial.
Get FREE access to our research for 30 days

An essential resource for all investors in the energy sector whether you're a trader, fund manager or individual investor - this inside look at the energy markets is unlike any other report or service currently available.

About the author

More recent articles by Editorial Dept

Fri 18 July 2014
Too Many Coincidences
Fri 18 July 2014
Goodrich Petroleum Part 2
Fri 18 July 2014
Coal Enters New Phase of Insecurity
Fri 18 July 2014
Global Energy Advisory – 18th July 2014
Fri 18 July 2014
To Frack or Not to Frack