Shale Gas Exploration: New Tool to Fulfil Ever-Growing Energy Demand
Shale gas has the unprecedented potential to revolutionize the global energy landscape; it could completely disrupt the rules of the game. There are only a handful of companies that are energy providers. However, with shale gas, a whole group of fuel suppliers could join the market. Shale gas is the natural gas trapped within the shale formation and is derived from underground shale deposits. Its increasing popularity in various industries has supported awareness regarding its benefits as an energy resource. As shale gas emits less carbon content as compared to coal, it could be considered as a cleaner energy option for those counties that are completely dependent on coal as an energy source. According to a research firm, Allied Market Research, the global shale gas market is expected to $214 billion by 2022. The low price of shale gas and a large number of shale reserves will be the major drivers.
The use of hydraulic fracturing to extract oil and gas is nothing new. However, only in the past few years, fracking has become a catchword, alluding to shale gas boom in the U.S. and the controversy that came with it. Regardless of the implications of it on Mother Nature, the impacts on shale gas on the economy are undeniable. Thanks to shale gas output from North Dakota, the oil production in the U.S. in the last year skyrocketed, breaking all the records of the last 14 years. Moreover, the country expects more output in the coming years. Now, other countries such as China, South Africa, and the U.K. are aiming to develop shale development to meet with their industrial energy demands and reduce coal dependency. What’s more, the market players that are in the business of mineral extraction have secured permissions for onshore shale gas exploration. Apart from this, Osaka Gas recently acquired U.S. Shale Gas Developer to enhance the company’s business portfolio in North America.
Santos obtains the permit for shale gas exploration
Santos, an Australian energy company, recently, acquired a permit for Australia’s first Environmental Management Plan (EMP) for onshore shale gas exploration in the Northern territory. This resumption of drilling activities follows the last month’s approval of the EMP for civil works around the well locations. As per Kevin Gallagher, the company’s Managing Director and CEO stated that this permit is regarded as a milestone that offers a way to resume onshore shale gas exploration in the McArthur Basin, which is the most resource-rich location for fracking. He said, “Prior in 2014, we drilled Tanumbirini 1 and the results were promising. Thus, we are delighted that we get this chance to restart the exploration.” He added that this would offer jobs to the local communities as well as small business opportunities. Moreover, he assured that the new regulations would ensure to protect water resources and the environment. Currently, the company us completing the drilling of Dukas 1 well in the Amadeus Basin and is expected to drill the location for the Ensign 965 rig.
Osaka Gas acquired U.S. shale gas developer
Japan’s leading gas company, Osaka Gas, recently acquired 100% of the outstanding shares of Sabine Oil & Gas Holdings, upon receiving necessary governmental permits. This is the first time that a Japanese company bought shale gas developer of the U.S. The acquisition would strengthen the company’s foothold in the North America, where the company intends to develop three U.S.-based businesses such as IPP projects, Freeport LNG liquefaction project, and Sabine’s shale gas project, which would help expand the company’s income for the future.
Sabine holds land of around 175,000 acres in East Texas in Harrison, Rusk, Panola, and Upshur counties that are producing shale gas in the range of 210 MMcfed with around 1,200 wells at the location. This acquisition offers Osaka Gas the entire land of Sabine and offers unparallel drilling inventory. Since last year, Osaka has been working to close this deal as the wells have been offering the output more than the expected volumes and producing steady cash flow. Due to this deal, Osaka Gas gained operatorship of the upstream business coupled with Sabine’s superior operational and management capabilities.
America dominates the market
As per the recently published report by the International Energy Agency, the U.S. is expected to dominate the global energy industry as the world’s largest exporter of liquified natural gas by 2024. What’s more, the recent shale gas revolution supplements its dominance. Prior to the shale revolution, America was expected to become the world’s massive natural gas importer. However, smart extraction technologies have paved the way for the U.S. to become the world’s largest natural gas producer. Last year, the country produced more natural gas than the entire Middle East.
The revolution not only made the country superior in the extraction business but would also support 3 million jobs by 2020 and contribute around $62 billion in federal and state tax revenue in the gas-producing states. Moreover, this natural gas production is expected to provide the country with a stable supply of energy at an affordable price into the future and help it dominate the global market.
