• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 6 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 3 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 21 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 7 hours Why is permian oil "locked in" when refineries abound?
  • 41 mins Saudi Arabia turns to solar
  • 15 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 3 hours Could Venezuela become a net oil importer?
  • 10 hours Teapots Cut U.S. Oil Shipments
  • 10 hours Oil prices going down
  • 11 hours Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
  • 1 day What If Canada Had Wind and Not Oilsands?
  • 1 day "The Gasoline Car Is a Car With a Future"
  • 23 hours U.S. Withdraws From U.N. Human Rights Council
  • 20 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 11 hours Putin Says 'Fierce' U.S. Politics Hindering Summit With Trump
  • 2 mins EVs Could Help Coal Demand
Alt Text

Permian Boom Jeopardized By Pipeline Troubles

Once a magnet for investors,…

Alt Text

Permian Bottlenecks Begin To Bite

The pipeline bottlenecks in the…

Alt Text

U.S.-China Trade War Will Hurt Shale Drillers

The latest escalation in the…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Trending Discussions

Shell And Apache To Start Fracking In Egypt This Month

Shell And Apache To Start Fracking In Egypt This Month

Egypt is close to joining the club of unconventional gas producers after Shell and Apache announced their local joint venture was ready to start work on a pilot project in the Western Desert, involving hydraulic fracturing, by the end of this month.

For Shell, this project represents an expansion of its presence in the gas industry of the North African country, which used to be a net exporter of the fuel before the revolution. It has substantial reserves of gas, including the biggest deposit in the Mediterranean, the Zohr Prospect, and much of these are awaiting development. In other words, Egypt’s gas industry has growth potential that the Anglo-Dutch company has not failed to overlook. Related: Eni’s Arctic Field Comes Online, But Will it Ever Be Profitable?

This expansion, which builds on the already solid presence of BG Group in Egypt, is part of Shell’s efforts to maintain its position as a leading global supplier of gas, as stated in its annual report.

And getting at Egypt’s gas through hydraulic fracturing is relatively easy—at least in terms of environmental opposition to the process. Egypt is in no position to block gas development as the nation is energy-starved and in urgent need of new sources of supply.

Shell and Apache together control half of the enterprise that will develop the Western Desert field, which is part of the North East Abu Gharadig oil and gas deposit, the other half in the hands of Egypt’s General Petroleum. Shell is the operator, with a 52 percent interest in their half. Three wells will be drilled at the field by June, when Shell and Apache will discuss the full-scale development of the project with the Egyptian government. Related: OPEC-Russia Meeting Set For April With Or Without Iran

A Wood Mackenzie report last year noted Shell’s focus on gas, especially on LNG, as a major growth driver for the company. Now, after the acquisition of BG Group, itself with a solid gas portfolio, the Anglo-Dutch firm has practically become the largest player in the global LNG field.

Over the near-term, this might not be a reason to cheer, given the bearish gas market at the moment; but over the medium- and long-term, a focus on gas may well prove to the be the smartest move. According to the International Energy Agency (IEA), global gas demand will continue to climb over the next five years, albeit not at a terribly significant rate. Growth drivers will be markets in Latin America, the Middle East, and Africa, where demand currently outstrips supply.

With its gas portfolio and this latest addition to its gas operations, Shell is among the companies in a very good position to benefit from this demand growth. Related: ‘’Iran’s Return To The Oil Markets Less Damaging Than Expected’’

But then again, Egypt is not the most stable environment to work in, and security concerns are mounting. In August 2014, an American employee of Apache Corp. was killed in an apparent carjacking in the Western Desert. While this particular type of incident was a one-off, energy security experts see a growing problem with everything from militant bombings to organized crime.

According to University of Oxford energy expert Justin Dargin, “the chaos following Mubarak’s ouster has caused terror attacks aimed at the energy sector—especially of the natural gas sector—to increase dramatically.”

With exception to the Sinai, however, militant attacks far have been focused largely on urban centers and security forces, and not really on oil and gas installations. The fear, however, is that eventually oil and gas could become a primary target because of its importance to the future stability of the Egyptian government.

By James Burgess of Oilprice.com

More Top Reads From Oilprice.com




Back to homepage

Trending Discussions


Leave a comment
  • Philip Branton on March 17 2016 said:
    What ?........geez, Egypt is sitting on a lot more SOLAR energy than stupid fracking..!!!

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News