The economic benefits of shale gas extraction has been questioned

Australia currently has more than 1,000 trillion cubic feet of undeveloped shale gas resources, but according to a new report for the extraction of shale gas in these infrastructure costs are too high and may exceed the economic benefits of its own, unless  shale gas  prices. Like the United States, Australia's shale gas reserves are very rich, but also requires the use of  Hydraulic fracturing  and other similar technologies to extract. This report by the Australian Academic Research Council (AustralianCouncilofLearnedAcademies) release, mainly for gas and shale resources, technology,
Human and environmental impacts, economic benefits, as well as lessons learned from the impact of greenhouse gas emission reduction targets in such areas discussed.
Gas is not cheap
This report, for the production of shale gas  in Australia the cost may be much higher than the U.S., you need to perform a relatively high price (6-9 U.S. dollars / GJ) in order to ensure profitability. By contrast, the eastern part of the domestic gas market wholesale price long-term contracts was approximately $ 4 / GJ, the current wholesale price of $ 6 / gigajoule. Report that "based on the above estimates, the development of shale gas on the East Coast there is no profit at all, unless the domestic and international netback price (about $ 10 / GJ) equilibrium." One of the authors of this report, the Australian Academy of Science, Technology and Engineering Dr. VaughanBeck, developers need to take into account additional product transportation and processing costs, "So nutshell shale gas development in the country currently does not have the economic benefits."
Social acceptance
For  shale gas  developers, access to social support is crucial, you need to be open with the landowner, equitable and transparent negotiations.
Water resources and environmental impact
Compared with coal bed methane extraction techniques, hydraulic fracturing of shale gas requires more water, "during the drilling or production due to brine or chemically modified liquid accidental spills, wells fault, the fault may be caused by leakage will pollute the aquifer; petroleum industry in controlling and resolving these issues has more experience, but for the shale gas industry is relatively young, there may be many unexpected problems. " The study also found that the use of shale gas than conventional gas power generation will produce 20% more greenhouse gases.
In the United States, Pennsylvania  hydraulic fracturing  rigs. Hydraulic fracturing need to inject large amounts of water, sand, and chemicals under high pressure to extract natural gas at the surface.
Uncertainty
Shale gas expert from Griffith University researcher VladoVivoda said this report is very timely, but he believes that shale gas prices are unlikely to rise, "If the next decade, the U.S. production of  shale gas  as a liquid natural gas (LNG) a large number of access to international markets (most of the imports from Asian countries), Asia's existing LNG will be an impact on the pricing structure, which is a reference to the pricing structure of crude oil index, which can actually affect the prospects for the development of shale gas, its price certainly higher than the North American market price. " Furthermore, considering the high cost of infrastructure and LNG price uncertainty, Vivoda Dr. involved in this market has a higher risk.
Vigilance
Honorary Fellow of Economics at the University of Queensland, said the report ColinHunt comprehensive outline of the Australian  Unconventional gas  extraction will be the risks and benefits, "We have long-term vigilance to prevent damage to the environment such jobs; Promoting policies for controlling the moisture content layer of water intake, avoid the production of water and hydraulic pressure chemical contamination of aquifers best practices. " But to make Hunt concerned, the survey shows that the majority were not a comprehensive analysis of the environmental impact assessment of its project on water use and disposal of cumulative environmental impacts, while shale gas infrastructure will destroy habitat and biodiversity .