For Immediate Release:

Thursday, June 11, 2015

It’s a race to see who invests wisely and can emulate North American successes while adapting shale fracking and drilling technologies to unique (and often quite different) geological formations.
“Everybody around the world has taken notice [of shale] the past few years. They’re taking notice and starting to wonder if they can get a part of the same energy revolution that we have here,” said Daniel Simmons, an energy scholar with the Institute of Energy Research.
Tempted by the fracking and horizontal drilling successes in the US, several countries are beginning similar projects to extract energy from shale – and with varying results. It’s anyone’s guess who’ll ultimately gain market share in shale. Countries are bandied about as the next “sure thing” in shale – only to provide dismal results that ultimately can’t meet lofty expectations.
Let’s consider some of the frontrunners in a three-part series:

1. This initial post in our 3-part analysis suggests that China, Argentina, and South Africa have a high potential to realize their shale aspirations in the near term.
2. Meanwhile, our second post in this series [link] will show why Poland and Russia deserve “Honorable Mentions” to bear shale fruit, too… as long as all the requisite stars align.
3. Keep reading for our third and final post in this series [link] for a peek at the long shots who are nonetheless worth mentioning: Colombia, Kazakhstan, India, Israel and Mexico.

All the competitors in the global shale race are all eyeing their sizable shale deposits – but just sitting atop huge shale reserves does not inherently lead to huge profits! They must also overcome the challenges standing between them and fracking, although these candidates seem to benefit from fewer limitations imposed by environmental controls as in other shale-rich regions and opposition movements with less traction than elsewhere.
Will China Ditch Coal?
Facing record pollution levels – ­15 times what is considered “unhealthy” in some of its bigger cities – China needs cleaner fuels or risks a public health and environmental catastrophe. The country consumes almost half of the world’s coal, and natural gas usage is surging to support China’s energy demands. As traditional gas supplies dry up, though, the Chinese government will need to refocus its production, adopt new energy strategies, and exploit shale reserves while continuing to import natural gas from Russia and other sources.
China’s shale reserves are extensive; the country may have more recoverable shale gas than any nation in the world. Estimates based on preliminary measurements range from 1,115 trillion cubic feet to 1275 trillion cubic feet. But the billion-dollar question remains whether the country can overcome substantial barriers to rapid shale development. These include a dearth of existing pipeline infrastructure, water scarcity in shale-rich areas, and a lack of regulatory frameworks to guide upstream activities and protect the intellectual property of technology providers.
“Oil companies and foreign interests – China and the rest – are [currently] gaining both the technical understanding and trying to figure out how to apply these techniques to reserves in their lands. That is a much more difficult task in a foreign country than it is in the United States – and…there are an awful lot of drivers,” says Paul Hagemeier, Senior Advisor and Vice President of ALL Consulting (Tulsa).
The post Shale Development Keeps Us Guessing: Who Will Frack Next? PART I appeared first on Canary, LLC.