South Africa: Shale gas as an opportunity for economic growth.

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The full spectrum of new and emerging technologies connected with the unconventional sources of energy give consecutive countries an opportunity to supply their domestic budget. For instance the Republic of South Africa is a state whose government gives the green light to companies looking to explore for shale gas under the semi-desert Karoo basin. Up to now five companies have applied for exploration permission. Among them are Royal Dutch Shell, Falcon Oil & Gas and Bundu Gas & Oil. Most probably, first explorations will have been started by the end of next year.

 “One area of real opportunity for South Africa is the exploration of shale gas”. said South Africa’s finance ministry (Mar 8, 2016). “Exploration activities are scheduled to commence in the next financial year. This will lead to excellent prospects of beneficiation and add value to our mineral wealth”

It is believed that deposit contains around 390 trillion cubic feet of technically recoverable gas reserves. Shell analysts predict that 50 trillion cubic feet can provide about $20 billion to the South Africa economy every year for 25 years.

Furthermore, additional source of financing will stimulate employment market and ensure about 700,000 jobs. Nevertheless, opponents claim that hydraulic fracturing will make an impact on environmental stability and expansion of pollution.

Sources:

www.reuters.com

www.colourbox.com

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