Algeria’s vast untapped shale gas reserves are once again drawing the attention of major American energy companies like ExxonMobil and Chevron, signaling a potential shift in the country’s energy landscape after years of hesitation and unsuccessful attempts. A recent report by Energy Intelligence suggests that Algeria holds approximately 700 trillion cubic feet (Tcf) of unconventional gas resources, a figure comparable to Qatar’s North Field (around 900 Tcf). This substantial resource base positions Algeria as a strategically important player in the global energy market.
According to John Ardill, head of global exploration at ExxonMobil, as quoted in the Energy Intelligence report published on October 22, 2025, this volume provides “strategic materiality” on the global energy map. Ardill made these comments on the sidelines of a London energy forum. These figures place Algeria among the world’s leaders in unconventional gas resources, trailing only China and Argentina, and surpassing the United States, currently the largest shale gas producer globally.
Despite this potential, large-scale commercial shale gas production in Algeria has yet to take off, hampered by technical, economic, environmental, and social factors. These challenges stem primarily from past experiences and local opposition to the water-intensive hydraulic fracturing (fracking) process. Previous attempts by companies like Shell, Eni, and Anadarko faced economic difficulties and failed to achieve sustainable success. Local protests in southern Algeria, driven by concerns over the large water consumption associated with fracking, led to a wave of demonstrations that prompted Sonatrach and oilfield services companies such as Halliburton and SLB (Schlumberger) to suspend operations in certain areas. This history underscores the need for a technically and environmentally acceptable solution before launching large-scale projects.
Algeria is now aiming to integrate shale gas development into a broader, ambitious energy investment plan. The government plans to invest approximately $60 billion between 2025 and 2029 to boost oil and gas production and develop hydrogen projects. This initiative follows a restructuring of the energy sector in September, designed to attract expertise, accelerate technological development, reduce costs, and minimize environmental impact, according to Ardill and other sources cited in the Energy Intelligence report.
Despite past setbacks, recent developments suggest renewed interest from American energy giants. ExxonMobil signed a memorandum of understanding (MOU) with Sonatrach in May 2024 to develop the Ahnet and Gourara basins in the southern Sahara. Furthermore, a meeting between John Ardill and Algerian President Abdelmadjid Tebboune in June 2025 signals a renewed diplomatic and technical commitment. Chevron has also signed an MOU and is conducting feasibility studies to assess the potential of the Ahnet and Berkine basins, although the company has been less vocal about its Algerian strategy. Chevron representatives also participated in meetings, including the Gastech forum in Milan in September, to coordinate with Algerian delegations.
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Ardill told Energy Intelligence, “We have learned a lot over the past two decades: the type of rock, the depth, the pressure, and how to reduce the costs of goods and supply chains to achieve the best well in its class and complete an ‘industrialized mode’ that lowers the cost curves.” The report highlights Algeria’s strategic geographic location and existing infrastructure as advantages for capitalizing quickly on these new resources. Three major pipelines – TransMed to Italy, Maghreb-Europe (GME), and Medgaz to Spain – can transport gas to the European market. This reduces the time to market and addresses commercial offtake requirements without waiting for massive new liquefaction projects.
The European Network of Transmission System Operators for Gas (ENTSOG) estimates that North African gas accounted for approximately 10% of European gas imports in the past year. Data from the analytics firm Kpler shows that Europe received about 94% of Algeria’s liquefied natural gas (LNG) exports over the past five years, highlighting Europe’s significant reliance on Algerian gas as a partial alternative to Russian supplies. ExxonMobil and Chevron aim to leverage their experience from the Permian Basin, a dry basin in Texas and New Mexico where both companies produce over one million barrels of oil equivalent per day. Their strategy involves applying specific elements that can be transferred to Algeria: rapid, sequential drilling methods, an “industrialized mode” to reduce costs, and integrated supply chain management.
Technical and financial details shared by Ardill in the Energy Intelligence interview included expectations of reducing the cost of drilling a single well from the current $25-30 million to between $6-8 million if the large-scale production system is successfully implemented, depending on the depth and geological conditions. He also suggested using local resources, such as desert sand, as a proppant in fracturing operations instead of relying solely on expensive imports. The report also addresses local concerns about water consumption, as hydraulic fracturing requires significant water resources. The Algerian government and companies are committed to responsible water management, including exploring alternative water sources and implementing closed-loop systems to minimize water usage and potential environmental impact.
The success of shale gas development in Algeria hinges on addressing these environmental and social concerns, fostering collaboration with local communities, and implementing sustainable practices. While the potential rewards are significant, the challenges are real. Careful planning, technological innovation, and transparent communication will be crucial for unlocking Algeria’s vast shale gas resources and contributing to the country’s energy security and economic development. The renewed interest from US energy giants underscores the strategic importance of Algeria’s gas reserves and the potential for a mutually beneficial partnership. However, it is essential that all stakeholders prioritize environmental protection and social responsibility to ensure a sustainable and equitable energy future for Algeria. The Algerian government is expected to release further details on its shale gas strategy in the coming months, providing more clarity on the timeline and specific projects that will be pursued. Continued monitoring of these developments will be crucial for understanding the future of Algeria’s energy sector and its role in the global energy market.
