Japan joins ´shale revolution´

Big energy consumer, Japan has uncovered its first domestic shale gas deposits. But experts say industrial production of ‘artificial oil’ from gas is many years off.

Japan Petroleum Exploration Company (Japex) said it managed to extract crude oil from a test sample in a gas field in Akita prefecture.

Up to 100mln barrels of shale oil could be extracted from the deposit, which would be the equivalent of about 10% of Japan’s annual consumption, according to the Japanese news agency NHK.

Despite the current reserves not looking too great, Japanese specialists hope that development of shale oil will promote extraction in other districts.

It is good news for Japan as it could significantly cut its dependence on energy imports. The need for hydrocarbons has become even more pressing after the Fukusima nuclear plant disaster in March 2011. Japan has abandoned the strategy of increasing the share of energy production to 50% nuclear.

Exploration for shale, or so called ‘artificial’, commodities seems to be turning into a trend.

The US extarcted its first shale gas in 1825, with the country’s specialists expecting a doubling of shale extraction – to 1.12mln barrels in the coming 20 years.