Arab News: Saudi shale boom to shift energy narrative

In March 2013, Saudi Arabia’s Petroleum and Mineral Resources Minister Ali Al-Naimi announced plans to drill seven test wells to extract shale gas as part of a program to develop the Kingdom’s unconventional Oil and Gas reserves.

While the US Unconventional Oil & Gas boom has made “Unconventional” a buzzword among energy and business analysts over the last few years, the move to develop this unconventional resource in a country renowned for its conventional oil and gas reserves can seem like a curious contrast.

But on further analysis, the development of a national shale gas network can be seen as a strategic move for the Saudi government to drive the economic growth of the country and secure future employment and revenue streams.

While shale gas has gained prominence with the general public due to the development of reserves in the US, few understand what the development of this resource actually entails.

Essentially, pockets of natural gas trapped in dense, impermeable sedimentary rock, shale gas production is a complex business involving intense seismological study, complex extraction systems and multifaceted distribution infrastructures. Similar to nuclear and renewable energy, the development of shale gas will depend not only on the availability of resources, but also on supportive fiscal measures and skilled talent.

There is good news for Saudi Arabia in this respect. Minister Ali Al-Naimi has forecast 600 trillion cubic feet (tcf) of shale reserves in the Kingdom, equivalent to over 100 million barrels of oil. MORE