156

Volume 42 - 2016 -

Issue 156

The issue of whether to extract shale gas has triggered hot debate among

the opponents and the proponents of shale gas. However, their debates are

subjective and biased. Unlike those debates, the present paper attempts to

evaluate the feasibility of extracting shale gas in Algeria without taking a priori

verdict. In so doing, the authors pointed out the geological aspects of shale

gas economics, which are ignored in both the debates among different parties

and in the previous studies. To this end, the authors focused mainly on the

uncertainties that are associated with the estimations of shale gas resources on

the one hand, and on the high costs of extracting shale gas compared to the

prices at which natural gas is sold either via spot markets or under long term

contracts on the other hand. The authors’ main finding is that extracting shale

gas at the current circumstances is not feasible.

Economic Evaluation of Shale Gas

Extraction in Algeria

Bu Bakr Saba -

Najy bin Hussain

*Assistant Profesor, Greater Maghreb Economic and Society Research Centre, School of Economics,

University of Costantine 2, Algeria

**Lecturer, Greater Maghreb Economic and Society Research Centre, School of Economics, University of

Costantine 2, Algeria