Algeria needs to exploit its shale gas resources to offset a surge in local energy consumption that is eating into vital exports, but developing the industry will take time and require far. This was openly stated by a total executive when questioned by the specialized journal mees, vol. New york algeria is one of the leading conventional gas producers in africa, ranks third in world reserves of technically recoverable shale gas, the united nations conference on trade and. No quick fix brookings energy security and climate initiative 2 lng imports, in part from the united states, and. Change is afoot the 28 memberstate european union eu has been a growing natural gas consumer and importer for decades. In march 2011, after just three years of development, the prolific. The algerian government should tackle these root problems firstbefore putting high hopes on shale if it wants to improve the dull outlook of its oil and gas industry. Algeria sees energy law amendment by end of 2018 reuters. Speaking late wednesday at the summit of the gas exporting countries forum gecf in malabo, equatorial guinea, chikhi also.
Algerias shale gas plans will take time, require tough reforms. Apr 23, 2015 protesters fear the impact of shale activities on water supplies and the environment because hydraulic fracturing, or fracking, the drilling technology used to extract shale gas, requires the use of large volumes of water, which is scarce in algeria. With price uncertainty, managing costs and financing risks are top priorities for the industry. Shale drilling site in pennsylvania photo helge hansen statoil.
Mexico and algeria are expected to begin commercial production by 2030 and 2020, respectively. Violence erupts at protest over shale gas drilling project. Algerias opposition flares up amid fracking plans news. Jul 19, 2016 china attempts to shake its dependence on coal by turning to shale gas. Algerians protest shale gas but their numbers decline.
Strengthening the france algeria partnership is one of frances priorities in order to foster economic relations. Now in the world, a new direction of hydrocarbon exploration developes oil and gas shales. Trr were china, argentina, algeria, the united states. No quick fix brookings energy security and climate initiative 2 lng imports, in part from the united states, and importing resources from the eastern mediterra. The issue of shale gas made its debut in the protests january 24. Natural gas in africa the frontiers of the golden age ey. Our shale gas and shale oil resource assessment methodology consisted of four main steps. Estimate risked shale gas and shale oil resource inplace. And norway has no autobahn, only tiny winding roads with up to. Algerian gas troubling trends, troubled policies ng 108. Minimum toc 2% prospective depth range 1,000 m to 5,000 m thermal maturity windows. Once an exciting prospect on the international energy scene, chinas longawaited shale gas boom has failed to materialise, with interest waning as oil prices fall. The sahara desert is being billed as a potential cure for the european unions gas problems, and.
Algeria negotiating with anadarko for shale project. Algerian shale gas basins abo about oil and energy. Dec 28, 2017 algeria needs to exploit its shale gas resources to offset a surge in local energy consumption that is eating into vital exports, but developing the industry will take time and require far. Algeria abandons shale gas for renewable energy inspiraction. We are achieving very encouraging results, even if they are not definitive, which correspond perfectly to what we have set as an economic target, sahnoun said. Extraction of shale gas in the us has transformed the energy landscape in the country with shale gas accounting for 20% of us natural gas production in 2010 1, and is expected to increase. Pdf on nov 30, 2015, tim boersma and others published shale gas in algeria no quick fix find, read and cite all the research you need on researchgate. One reason for this may be the role that shalegas development plays. Dec 28, 2017 algierslondon, dec 28 reuters algeria needs to exploit its shale gas resources to offset a surge in local energy consumption that is eating into vital exports, but developing the industry will take time and require farreaching reforms at the state energy firm. According to the source, the data represent standard cubic meters measured at 15c and 1,0 mbar where.
Algerias sonatrach to press on with shale gas exploration. Algeria is oil and gas rich, both in conventional and unconventionalmainly shale resources. After eni, talisman and total, sonatrach eyes on exxonmobil and shell after signing contracts with eni from italy, talisman energy talisman and total from france, sonatrach is willing to attract exxonmobil and shell for the exploration and production of unconventional gas, shale gas and tight gas, in algeria. Algerias sonatrach in talks with shell, exxonmobil on shale gas.
Algeria in talks with majors iocs to boost shale gas development one day one news after eni, talisman and total, sonatrach eyes on exxonmobil and shell after signing contracts with eni from italy, talisman energy talisman and total from france, sonatrach is willing to attract exxonmobil and shell for the exploration and production of. Algerian state energy firm sonatrach is seeking cooperation with exxon mobil corp on shale gas and more, sonatrachs chief executive said on thursday. Overview algeria is the leading natural gas producer in africa, the second largest natural gas supplier to europe, and is one of the top three oil producers in africa. Europe hot for algerian shale gas by jen alic nov 28, 2012, 4. The algerian ministry of energy uses a recovery factor of 15% to put the total technically recoverable.
Algeria shale gas unconventional play report wood mackenzie. Algeria looks to develop shale gas sector news al jazeera. China shale gas output surges 50% in march business. Malabo algeria s stateowned sonatrach is carrying out two pilot projects to assess the commercial viability of its vast shale gas resources, and the results to date have been very encouraging, the companys new ceo kamel eddine chikhi said. Algeria sticks to shale gas development, unfazed by protests.
Shale gas was first extracted as a resource in fredonia, new york, in 1821, in shallow, lowpressure fractures. Oct 16, 2017 algeria aims to amend its energy law in 2018 as it plans to improve contract terms to attract needed foreign investment, authorities said on monday, giving the first timeline for a much. Production has held strong in recent years at about 9 bcfd, and shale. We are aggressively expanding our global infrastructure to support new shale gas development outside of north america.
In theory, the project looks like the ideal solution to many of algeria s problems. No quick fix brookings energy security and climate initiative iii t he authors are grateful to a wide array of stakeholders, including government of. Opportunities and risks of fracking i remember that under my supervision, a study to which participated international experts with decades of experience in the field of energy, resulted in. After an introduction presenting the general context of the recent development of the north american shale gas industry, the first part focuses on the geological factors that control the gas shale prospectivity and productivity. Eiaari world shale gas and shale oil resource assessment 3 our resource assessment methodology 1.
The political economy of oil and gas, oxford university press for the oxford institute for energy studies, 2001. Conduct geologic and reservoir characterization of major shale basins and formations. Faced with declining natural gas production, the federal government invested in many supply alternatives, including. In algeria,this hydrocarbontype called unconventional totalizes around 30% of the worlds gas shale reserves. Protests against hydraulic fracturing, or fracking, for shale gas in southern algeria turned violent over the weekend when the police clashed with demonstrators outside a base run by the american company halliburton near the town of ain salah.
Algerias shale gas dreams are a nightmare for locals. The prime minister in a statement on october 1 st, 2017 to the national assembly has indicated that going for shale oil and gas in algeria is an option for the immediate future. Meanwhile, the countrys gas production has declined steadily since 2005 to 2. Resource categories when considering the market implications of abundant shale resources, it is important to distinguish between a. More than 4000 data points has been considered from one of the tight gas sand basins in this study. Algerias sonatrach hopes for exxon mobil deal on shale gas. Energy information administration eia study reveals that algeria has 707 trillion cubic feet tcf of recoverable shale gas reserves, estimated to be the third largest in the world. An assessment of 7 shale formations in 41 countries outside the united states. A 623 5 canada 573 6 mexico 545 7 australia 429 8 south africa 390 9 russia 285 10. The shale gas pilot program is to allow sonatrach to gauge the technical and economic feasibility of commercial exploitation of algeria s large shale gas resources.
Horizontal drilling began in the 1930s, and in 1947 a well was first fracked in the u. Algeria shale gas plans will take time, require tough reforms. Major oil companies operating in venezuela have had difficulty with the spreading resource nationalism. Faced with declining natural gas production, the federal government invested in many supply alternatives, including the. Algeria abandons shale gas for renewable energy inspir. Algeria s mature upstream industry, with its extensive operational experience and sophisticated supply chain, provides a good platform to develop a new shale gas play. Jun 05, 2017 algeria abandons shale gas for renewable energy published on june 5, 2017 in renewable energy by the newsroom the algerian government has decided to abandon shale gas and concentrate its energy policy on the development of renewables with a focus on energy efficiency.
Algeria needs to exploit its shale gas resources to offset a surge in local energy consumption that is eating into vital exports, but developing the. By 2020, the proved reserves of shale gas will surpass 1. China and argentina take the lead as having the largest global shale gas resource base. This work is presented in wgc kuala lumpur and was referenced in the iea 20 report, unconventional. Do you believe in magic can mexico spur gas production in. Algerias shale gas plans will take time, require tough. Eiaari world shale gas and shale oil resource assessment. Troubling trends, troubled policies 2 an oil equivalent basis 51% of primary energy production, fuels 90% of power and powerwater generation6 and accounts for 39% of the remaining use, as both an energy source and a feedstock for the petrochemical and fertilizer industries. More than 95 percent of the countrys shale plays are covered by the sahara desert, according. This was made clear by the minister of energy, noureddine boutarfa, on the sidelines of a lively conference in midapril at the ecole des hautes etudes commerciales in kolea near algiers on the national program of renewable energies.
And more than 50% is still not most people, lets be real. How shale gas development will impact investment in renewable energy sources and how much environmental. Ukraine over their gas business relations, the role of algeria, which is both a major supplier of lng and pipeline gas to southern european markets, has been largely overlooked. However, the upstream sector is tightly controlled by the state and is well known for its harsh fiscal terms. Eventually, however, the countrys hunger for energy will trump all other concerns. Most of algeria s new projects in the energy space focus on natural gas, increasingly becoming the worlds goto fuel. In algeria,this hydrocarbontype called unconventional. Mar 05, 2015 new anti shale gas demonstrations were held this monday in algeria, after the violent clashes between protesters and security forces, the authorities showing their determination to put an end to. After decades of high investment, in the 1960s and 1970s oil taxation of the iocs international oil companies was significantly increased and oil concessions were not renewed. Pdf on jan 1, 2012, mohamed arab and others published the potential of shale gas plays in algerian find, read and cite all the research you need on researchgate. China, argentina, algeria, canada and mexico make up over 65% of globally.
To get at it will require the drilling of some 400 test wells to determine. Unfortunately, as global shale law compendiums marie concludes, the future of shale gas developments in algeria remains fragile and uncertain. China attempts to shake its dependence on coal by turning to. Oct 10, 2019 algeria shale gas unconventional play report summary algeria s mature upstream industry, with its extensive operational experience and sophisticated supply chain, provides a good platform to develop a new shale gas play. According to the us governments energy information administration, algeria has vast shale oil and gas. The eagle ford shale play is believed to extend past the texas border and into mexico. Feb 28, 2012 algerian energy minister youcef yousfi revealed that his countrys reserves of shale gas are equal to that of the usa, algerian press service aps has reported. Jan 28, 2015 algeria seeks to team up with usbased anadarko to explore for shale gas in the country at a time when algiers is going through a public relations battle as a result of anti shale protests in towns in the south of the country. Technically recoverable shale oil and shale gas resources. Overview of the production costs structure for shale gas wells thanks to technological progress, production costs of shale gas sources have reduced over the last years. Effects of shale gas sector development on other economic sectors 25. Algerias shale gas experiment carnegie middle east. Algerias falling oil output shifts focus to shale gas.
Sep 21, 2014 algerias state oil and gas company, sonatrach, announced this summer that it plans to exploit the countrys shale gas reserves by 2020, taking advantage of what bp estimates to be the worlds thirdlargest reserves of shale gas. While algeria s national oil and gas company sonatrach is already. Algeria ns demonstrate against shale gas exploitation in the country getty images recently, having failed to obtain many tangible results, the anti shale gas. Jun 27, 2019 in 2018, natural gas production in algeria amounted to around 92. The international energy agency estimates that algeria has around 231 trillion cubic feet of recoverable shale gas. Key findings while geological conditions and an extensive existing gas industry are beneficial factors for algerian shale gas extraction, there remain a wide range of potential roadblocks to. The oies gas programmes last paper on algeria was by hakim darbouche in march 2011. Nov 30, 2016 mexico is keen to pursue shale gas development as a means of bolstering declining conventional production and to meet domestic demand.
However, the low productivity of shale wells delayed largescale development of shale gas until the 1970s and 1980s when the development of new technologies made the production of shale gas costeffective wang and krupnick 20. The initial shale gas technically recoverable resource trr estimates for the 32 countries outside the u. The level of future shale gas development will hinge. Algeria aims to develop shale gas despite challenges. Production of shale gas worldwide by country 2040 statista. Dec 01, 2015 the ongoing turmoil in ukraine has left eu policymakers searching for new ways to diversify energy supplies away from russian gas. S federal price controls on natural gas led to shortages in the 1970s. Leveling the playing field for shale gas exploration. That imported lng is serving as a stopgap until new gas pipelines within mexico come online. Shale gas development the canadian center of science and.
Algeria s state energy company sonatrach will press ahead with plans to develop shale gas reserves and refuses to yield to protests by local communities and environmental groups, its interim. Algerias plans for shale gas bring risks, few longterm benefits. Norway is a small country with a very small and wealthy population. Oct 03, 2017 going for shale oil and gas in algeria oct 3, 2017 mena, oil price, oil production, shale gas the prime minister in a statement on october 1 st, 2017 to the national assembly has indicated that going for shale oil and gas in algeria is an option for the immediate future. Calculate risked, technically recoverable shale gas and shale oil resource trr. Options and challenges to natural gas supply diversification congressional research service 1 introduction. Shale gas shale oil gboe gboe poland 25 3,3 france 23 4,7 romania 9 0,3 denmark 5 0 uk 4 0,7 netherlands 4 2,9 others 9 1 total 80 12,9 country. Algerias shale gas experiment carnegie middle east center.
Algeria eager to tap shale reserves nat gas lng oil. This article is part of an indepth series on global shale. Algeria has announced plans to drill four shale gas wells by the end of 2014 as it begins assessing the commercial viability of a resource base estimated to be the thirdlargest in. Nationalization of oil supplies was achieved in 1976.
Evaluating and developing shale gas in algeria is becoming a priority as several shale gas evaluation projects covering different basins are in process or have been finalized, despite the public protests mainly due to the lack of knowledge about hydraulic fracturing. Sep 27, 2016 the first shale well was drilled in 1821 in fredonia new york, usa with the gas used for town lighting gwpc and all consulting 2009. Currently the only countries commercially producing shale gas are the u. As evidence of the success in producing gas from shales, in 2008, the barnett shale became the largest gas producing play or formation in the us, contributing 7% of all the natural gas produced in the contiguous 48 states for that year. The term of production costs used in this paper refers to wellhead costs including capital costs. Define prospective area and risk factors for each shale formation. Technologically recoverable global shale gas reserve estimates. Algeria needs to exploit its shale gas resources to offset a surge in local energy consumption that is eating into. From reuters algeria needs to exploit its shale gas resources to offset a surge in local energy consumption that is eating into vital exports, but developing the industry will take time and. Algerias sonatrach points to encouraging shale gas. To this end, the core and well log data 8 from 12 wells of mesaverde group tight reservoir located in the largest western us has been applied for the model development. Last july, algeria s state energy company, sonatrach, announced that it intended to begin exploitation of the large shale gas fields in algeria by 2020, with an estimated production capacity of 30 billion cubic meters in the first stage, or 40% of algeria s current production capacity 73.
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