By Brunno Braga (brcbraga@gmail.com)
In Brazil, unconventional gas is far from being a reality. Even with its potential, thanks to its geological characteristics, exploration depends on the overcoming of regulatory barriers and technological changes. A regulatory framework establishing clear rules related to environmental licenses and utilization of chemicals when drilling wells is essential to develop the industry. For that, it is necessary to prepare geological studies in order to know the required technologies used in those exploration processes. Everything depends on research and development, and the country will only enjoy the full Brazilian potential in unconventional gas through trials and errors.
Another barrier to be dealt with the shale gas industry is the economic one. Once the production of shale gas becomes feasible, it will be required to reduce costs in production. And it shows that there is a long way ahead to be achieved. Unconventional gas production is forecast to begin in 2023. In the current scenario, it is too early to talk about issues such as distribution, flowing and reduction of costs with this gas. All studies are merely conceptual.
Argentina can be seen as a good example for the success of unconventional gas in South America. Yet t is too early to know the future impacts on the oil prices once the crisis is over and investments in shale gas are finally resumed. That is why it is imperative to be prepared to welcome fracturing technologies, rigs and qualified workforce by the time prices are stabilizing and clashing again with the traditional E&P activities.
