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, lessons learned, as well as the impact of greenhouse gas emission reduction targets in such areas discussed. 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."