SHELL SA is prepared to invest about R2bn to drill six holes in the Karoo, once it receives the necessary permits, to test if there is economically viable shale gas, Shell SA chairman Bonang Mohale said on Wednesday.
Based on studies conducted in the 1960s, it is believed SA could have considerable quantities of shale gas. In the US, shale gas development has helped to pull the economy out of recession.
In SA, public concern over the environmental consequences has paralysed the process. Restricted exploration work can take place but hydraulic fracturing (fracking) will not be allowed until final regulations are in place.
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