Mail&Guardian: The Hunt for Karoo Shale Gas Begins

Exploration of shale gas in South Africa is expected to commence as soon as July this year. Falling global energy prices have put oil companies under pressure to rethink investments, but exploratory drilling in the Karoo will almost certainly go ahead.

Timelines presented by the department of mineral resources to the National Council of Provinces in October indicate it is likely that regulations for shale gas exploration will be published in the Government Gazette in the next few weeks.

Exploration licences would then be granted – as early as July or August – and exploration could commence immediately thereafter.

Shale gas, should it be judged to be viable, will mainly be used to ­produce electricity and not fuel. It is for this reason the economics of investing in extracting shale gas remain favourable, energy experts told the Mail & Guardian.

Meanwhile, the minerals and energy sector is awash with uncertainty. MORE