• 4 hours Russia Approves Profit-Based Oil Tax For 2019
  • 8 hours French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 10 hours Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 12 hours Oil Production Cuts Taking A Toll On Russia’s Economy
  • 14 hours Aramco In Talks With Chinese Petrochemical Producers
  • 15 hours Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 16 hours Maduro Names Chavez’ Cousin As Citgo Boss
  • 23 hours Bidding Action Heats Up In UK’s Continental Shelf
  • 1 day Keystone Pipeline Restart Still Unknown
  • 1 day UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 1 day Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 1 day Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 2 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 2 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 2 days Oil Prices Rise After API Reports Major Crude Draw
  • 2 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 2 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 2 days Statoil Looks To Lighter Oil To Boost Profitability
  • 3 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 3 days Whitefish Energy Suspends Work In Puerto Rico
  • 3 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 3 days Thanksgiving Gas Prices At 3-Year High
  • 3 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 3 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 4 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 4 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 4 days ConocoPhillips Sets Price Ceiling For New Projects
  • 6 days Shell Oil Trading Head Steps Down After 29 Years
  • 6 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 6 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 6 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 7 days Venezuela Officially In Default
  • 7 days Iran Prepares To Export LNG To Boost Trade Relations
  • 7 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 7 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 7 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 7 days Rosneft Announces Completion Of World’s Longest Well
Are Oil Prices About To Turn Lower?

Are Oil Prices About To Turn Lower?

As too many bearish factors…

Iran: Most OPEC Producers Back Extension Of Cuts

Iran: Most OPEC Producers Back Extension Of Cuts

The majority of OPEC members…

South Africa Allows Shale Exploration in Beauty Spot

South Africa Allows Shale Exploration in Beauty Spot

The Karoo semi-desert is a vest region that covers more than 400,000 square kilometres, around 40% of South Africa’s land mass, and has remained virtually undeveloped for hundreds of millions of years. Just recently Kgalema Motlanthe, the Deputy President of South Africa has announced that the government has been advised by scientists to allow companies to begin fracking for shale gas in the region.

On Thursday, Rob Davies, the trade and industry minister, said that the cabinet has agreed to begin shale gas exploration in the Karoo before next year’s general election. Environmentalists are angered and have promised to fight the decision in court.

Davies explained that “the gas fields of northern Mozambique, which have just opened, have got about a hundred trillion cubic metres of gas.

The shale gas deposit estimates suggest that it is multiples of the Mozambique level. If that is the case, this could be a very significant game-changer in terms of the energy situation in South Africa.”

Related article: A Look at the US Shale Industry with David Hughes

The Karoo semi-desert
The Karoo semi-desert. (SANBI)

The Guardian notes, that just like in the US and the UK, fracking in South Africa has divided the nation, with many people and groups contesting its development.

Jonathan Deal, the chairman of the Treasure Karoo Action Group, commented that “firstly, we believe that such a decision will have an impact which will endure far beyond the election cycle of the government,” and therefore “cannot be rushed through before next year's election. It will be completely irresponsible.”

Related article: Improving Shale Well Profits with Enhanced Oil Recovery Techniques

He then said that “secondly, [mining] minister [Susan] Shabangu has promised on various occasions to consult with the public of this country prior to making any decision on shale gas mining. This has not happened, and the people of South Africa at all levels are entitled to be heard on an issue of this magnitude.”

Davies assured that all aspects of fracking would be considered, from the economic to the environmental impacts, before making a final decision. “Of course we are not going to do this in any kind of irresponsible way. We obviously have to bear in mind all the environmental implications including, of course, the nature of the relationships with any company that gets any kind of permit, what is going to be the delivery in terms of any positive impact on the economy.”

South Africa’s national energy grid, which relies mainly on coal fired power plants, is under great strain, with warnings of power cuts across the nation, after the governing African National Congress has worked to bring power to millions of people, who, under racial apartheid were denied access.

The US Energy Information Administration claims that South Africa has the fifth largest reserves of recoverable shale gas in the world, with a total of 484 trillion cubic feet.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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