ABSTRACT
This chapter examines the barriers to shale gas extraction in South Africa, focusing both on environmental problems as well as economic and institutional/regulatory shortcomings. It outlines the potential benefits of such extraction as well as of pressing economic and environmental concerns, building on evidence from Europe and the United States where shale gas exploration and exploitation is more advanced than it is in South Africa. The chapter turns to the case of South Africa, providing information on the activities of the most important companies that would like to play a major role in fracking in the country. It also summarises the government's optimistic vision for the shale gas industry. The chapter focuses on the economic aspects of the shale gas industry in South Africa and argues that the high hopes of the government concerning job creation, energy security and a reduced carbon footprint are not ultimately realistic. Furthermore, it elaborates on the negative environmental side-effects of fracking in the Karoo.
