The governance of shale gas production in South Africa

Abstract

The proper governance of shale gas mining in the Karoo region of South Africa is important. With an estimated 390 trillion cubic feet of recoverable shale gas, large economic gains are possible. This may dramatically change the South African energy sector; in the United States, similar explorations have led to what pundits term the 'shale gas revolution'. The development and production of shale gas hold economic advantages, but also potential environmental costs, thus the regulation of fracking activities is an important consideration as the development of shale gas in the Karoo progresses. This study reviews the regulations imposed in other countries as well as the current regulatory framework of South Africa. This article analyses these regulations in terms of the content of fracking fluid, seismic activity and the pricing regime. Effective regulation will be key to maximise a positive impact, should shale gas development continue.