How the US are rethinking fracking and shedding jobs and why SA needs to take note
Some recent updates about the fracking situation in the US and what that may imply for South Africa. Read more about these and other stories at: http://jonathandealblog.com.
But first, on a personal note:
As a Discovery Health client for many years I have to say I found it ironic to discover (pardon the pun) in their latest Discovery magazine (which is otherwise an excellent publication) that Bonang Mohale (Chairman and country general manager: commercial at Shell SA) is being held up as an example of a 'visionary and thought leader' who is also a 'health leader'?
Yes, granted, he is walking the talk in terms of his own health and encouraging his staff to eat and live healthily and supporting Discovery's health initiatives. I'm just wondering how driving fracking for shale gas in our country (and elsewhere), polluting our scarce and vulnerable water resources, our land and air will benefit anyone's health in South Africa?
I plan to write a letter to Discovery asking exactly that.
That said, on to other news:
1. According to an article by Yadullah Hussain Matthias Bichsel, projects and technology director at Royal Dutch Shell, the United States’ oil and gas industry has “over-fracked and over-drilled”. Bichsel stated that: “The reservoirs don’t need that many wells. The reservoirs don’t need that many stages of fracks, because not all the pieces of the rocks are as good,” Mr. Bichsel said in a telephone interview from Vancouver last week, where he was speaking at a company event. While Mr. Bichsel does not believe the U.S. shale gas is overhyped, he does think that not all fields are created equal...
“And I’m afraid that some countries may be setting themselves up for dashed expectations. Take Poland, for instance, where a number of operators have announced that they’re pulling out.”
In another story it is reported that the shale gas industry is shedding jobs in the US. Good tidings for those who see fracking as their saving grace in terms of job sustainability in our country? (I think not!). Here's more about this story:
This from Jonathan Deal's blog: "Did you know? As at 29 Sep 2013 there were 163 less drilling rigs operating in the US than at 31 December 2012. Wonder where ALL THOSE JOBS WENT TO? Guess if fracking production does start here there may be some VERY red faces in the plush carpet halls of big oil n gas and government".
Chesapeake Energy revealed that 800 employees were informed that they will be leaving the company, according to a companywide email.
Peter Voser *see pic, speaks at the Oil & Money conference in London, October 1, 2013.
Royal Dutch Shell CEO Peter Voser said it will take a longer time than expected for the company to reap benefits from its shale gas projects due to poor short-term results.
“We didn’t get the results which we were expecting to get in the shorter term and we will therefore have to develop this a little bit more before we can take benefits from it,” Voser told reporters on the sidelines of the World Energy Congress.
Voser was also sceptical about the success of shale development elsewhere.
In contrast to more optimistic outlooks at the conference, Voser said it will take decades before the revolution in the United States can be replicated elsewhere in the world.
Go to Jonathan’s blog for full story and credentials.
Take care for now and keep the faith!