Algeria has the third largest shale gas reserves in the world, according to the latest research from the Energy Information Administration, the US Department of Energy's statistical arm.
The report propels Algeria from its previous rank as the holder of the world's ninth largest shale gas reserves and triples its earliest assessment of 231 trillion cubic feet (tcf) to 707 tcf.
Only Argentina (802 tcf) and China (1,115 tcf) have more technically recoverable shale gas resources, the new survey estimates.
"Despite exploration being in an embryonic stage in many countries, international interest in the potential economic benefits of shale has been gaining momentum," said Ernst & Young in a recent report on shale gas' global prospects. "For some governments, the revenues from taxes on shale activity and private sector job creation would be especially welcome in these times of fiscal austerity.
Algeria's shale gas and oil reserves are located across seven basin.
"Our assessment is that these seven basins contain approximately 3,419 tcf of risked shale gas in-place, with 707 tcf as the risked, technically recoverable shale gas resource...," the EIA said. "In addition, six of these basins hold 121 billion barrels of risked shale oil and condensate in-place, with 5.7 billion barrels as the risked, technically recoverable shale oil resource."
Sonatrach, the state-owned Algerian oil company has been exploring shale gas and oil opportunities, and is planning to drill a series of exploratory wells in Berkine (Ghadames) Basin, apart from Illixi, Timimoun, Ahnet and Moydir basin.
"International energy companies, Statoil and Repsol, have also undertaken geological and reservoir characterization studies of Algeria's shales," the EIA said.
"Over the past year, Algeria has passed amendments to its federal legislation covering the hydrocarbon sector, improving investment climate in anticipation of an expanded hydrocarbon licensing round due in 2013. However, the position of its stated-owned company Sonatrach is expected to remain dominant in this sector."
NORTH AFRICAN RESERVES
Tunisia also has some modest shale gas and oil reserves, at 23 tcf, and the EIA says potential for "more shale gas and oil potential may exist."
The agency believes the Tannezuft and Frasnian shale formations in the Ghadames Basin contain 114 tcf of risked shale gas in-place, with 23 tcf as the risked, technically recoverable shale gas resource.
Tunisia is also home to two shale formations contain around 29 billion barrels of risked shale oil in-place, with 1.5 billion barrels as the risked, technically recoverable shale oil resource.
There has been exploration activity in the Ghadames Basin, with Cygam Energy acquiring four permits in the basin across 1.6 million net acres, and the company is seeking a joint venture to explore the lease further.
Chinook Energy Inc. has also bought lease blocks across 1.3 million net acres.
Royal Dutch Shell also acquired lease at the less-defined Pelagian Basin for USD 150 million, while a Canadian company African Hydrocarbon has a stake in a reservoir.
Meanwhile, Libya also has risked shale gas reserves of 942 tcf, with 122 tcf that are recoverable, according to the EIA. Libya is also endowed with shale oil reserves of 26.1-billion, to add to its impressive conventional crude oil reserves.
The agency notes that there are likely additional shale resources in other Libyan basins.
However, the country has not made a great effort to pursue development of the resources as it is preoccupied with bringing its existing oil infrastructure on stream after a bloody civil war in 2011.
"There has been interest expressed or exploration activities begun in shale formations in a number of other countries, including Algeria, Argentina, Australia, China, India, Mexico, Poland, Romania, Russia, Saudi Arabia, Turkey, Ukraine, and the United Kingdom," said the EIA.
In Morocco, there are around 200 million barrels of shale oil/condensate reserves in place, with additional prospects of wet and natural gas reserves.
"The Moroccan national oil and gas company, ONHYM, has been evaluating the country's shale gas potential since mid-2010. It has plans to collect seismic data followed by the drilling of a shale gas exploration well," the EIA said. "The well is proposed to be drilled in partnership with San Leon Energy (Ireland) and Longreach Oil and Gas (Canada) on the Zag exploration license."
SOUTH AFRICAN RESERVES
The country's large natural gas import bill has compelled the government to explore its Karoo basin aggressively.
The Prince Albert shale play may have as much as 77 trillion cubic feet of natural gas, while the Whitehill could contain almost 211 tcf.
Sasol, Chesapeake, Shell, Statoil and Chevron are among the major players exploring in the region.
High reserves may not necessarily translate into realizable profits anytime soon for many of these countries. The shale oil and gas revolution in the United States took off largely because of the financing, infrastructure and skilled labor that could engineer fantastic technical innovation to access those oil and gas deposits.
But it has not been replicated as easily in other promising places such as Poland which was once seen as a promising shale gas region, but has been a major disappointment.
"Notwithstanding the growing global interest in shale gas, we continue to believe that the pace of development outside the US, at least in the next decade, will be more gradual and the impact on global energy markets will be less dramatic," said Ernst & Young.
© alifarabia.com 2013
