What should a conscientious investor know about shale gas?

Shale gas is found in negrained rocks, characterised by high porosity and ultralow permeability

By 2035 it is expected that around 25% of the total gas production will come from unconventional gas

A clean energy?
What are the signicant risks?
Water consumption
An energy dependent on water availability: At least 40% more water needed to produce shale gas than conventional gas 0.14% of chemical additives: The majority of these chemicals are used in everyday life, but some of them can be extremely toxic even in small quantities
Scale inhibitor 0.01% HCl acid 0.03% Antimicrobial 0.05% Friction reducer 0.05%

Water contamination

94.62%

5.24%

Chemical additives 0.14%

Risk of fugitive methane emissions during the production process

500 m

Management of return water that contains salt, gases and naturally occurring radioactive elements

1 000 m

1 500 m

Contamination due to a fault in the well construction is a common risk to conventional oil and gas as well

2 000 m

2 500 m
The shale is fractured by the pressure inside the well

Shale gas reserves worldwide

South Africa has around 390 trillion cubic feet of gas reserves

China has the worlds largest shale gas reserves at around 1 115 trillion cubic feet

and in South Africa

Many of the proposed shale gas extraction areas are ecologically sensitive or waterstressed

Are we entering a golden age of gas?

Production area
Water-stressed region or basins requiring an excessive amount of water Chemicals disclosure by countrys requirements At least 600 m between the aquifer and the producing area Waste water management according to the countrys requirements Well construction according to the countrys requirements Countrys requirements to ght climate change

What are the Golden Rules?

Producer
Measures to reduce the amount of water used Chemicals substitution with more environmentally friendly products Use of seismic technology Manage the waste water responsibly Protection of the aquifer (cement layers and pressure test) Reduce the fugitive methane emissions and use of infrared cameras
THEUNS KRUGER, Graphics24