African Development Bank pushes for shale gas development

African Development Bank pushes for shale gas development

A report (pdf) launched by the African development bank finds substantial potential for natural gas extraction from shale formations in a number of African countries:

Several African countries have potentially viable shale gas deposits, which, if developed, could lead to lower gas prices, increased consumption of natural gas, reduced greenhouse gas emissions from power generation and substantial economic benefits to producer countries, finds a report launched today by the African Development Bank (AfDB). – Press release

But the report also cautions the countries analysed, including Algeria, Libya, Tunisia, Morocco, Mauritania, South Africa and the Western Sahara that shale gas exploitation is fraught with environmental dangers. From the executive summary:

The production of shale gas by fracking involves a number of environmental risks, and these continue to be of concern to communities near proposed well sites and groups involved with environmental protection. Four key issues have been identified that governments need to take into account in their decision making and regulations for the sector.
I. The large use of water required for fracking – Each well requires a large amount f water (several thousands of cubic meters, which has to be either taken from local water sources or trucked in. […]
II. Water contamination – The chemicals added to the fracturing fluid may escape and pollute water supplies. This can happen at the surface, where better containment can be mandated, or underground through leaks into aquifers, […]

With all of the countries assessed in the report being largely arid (South Africa’s largest shale gas potential is in the Karoo desert) and already confronted with water crises, this is a major issue.

III. Seismic events […]
IV. Venting and flaring of gas – […] The global warming potential of vented gas is so high that allowing a substantial fraction of the produced gas to be vented would raise the total life-cycle emissions of the gas toward those of coal, […]
The AfDB advises prospective producers to use available regulatory tools to minimize environmental risks. Environmental organisations argue that until now the potential environmental harm that shale gas exploitation could cause is not understood very well and that countries should refrain from tapping their reserves of this unconventional resource because of this. But with the report attesting several African countries potential reserves on “game-changer” scale, appetites will likely overcome caution.

What is your take on the report? What weights greater – environmental concerns or potential profits?