Unconventional Shale Gas Development in Saudi and Algeria - Assessment Using USA Key Success Factors Framework

Abstract

About 40 years ago, the USA started to develop unconventional gas resources, and success has escalated in recent years. From 2005 to 2015, domestic shale gas increased from 4% to 56% of total USA gas production. Outside North America, many countries, including Saudi Arabia and Algeria, aspire to achieve similar success. Both countries have focused on and invested in developing shale gas through their respective national oil and gas companies. This paper presents our research into the progress of development in both countries. We applied the framework outlined in our earlier paper, SPE 183443, and in this current paper we provide highlights, lowlights and specific recommendations based on efforts to date and for the future. Our research on shale gas development in Algeria and Saudi Arabia was based solely on publically available information, to which we applied our framework presented previously. The framework uses the experience in the USA as the basis for evaluating efforts to develop, assess and expedite shale gas development in other countries. In our previous publication, we applied the methodology to analyze shale gas development in China and Poland. Our analysis framework divides the dominant factors into two categories: the first includes subsurface factors related to drilling and fracturing of the shale systems, and the second contains several technical and non-technical surface factors which include involvement of the State (which has consistently directed and stimulated unconventional gas development in all countries), the roles of oil and gas operating companies, the role of service companies, the availability of required materials and water, the related logistical capability, and the gas market and gas infrastructure.

The Impact of the Volatility in Oil Prices on Saudi Arabia’s and Algeria’s Military Expenditure: A Comparative Study

“…However, Alharbi (2020) have argued that the new taxes can have a negative impact on Saudi Arabia's economic activities and, thereby, disrupt other sectors of the country's economy such as healthcare. Following the drop in the YOP, the Algeria Government has developed a series of strategies which include increasing taxes on fuel, car imports and power usage (Zeid and Lee, 2017). These findings are consistent with those of Azubuike et al (2018) who noted that, given the fluctuations in the YOP, the consumers need to embrace more fuel-efficient vehicles and that this is only possible through increased taxes.…”