Fact-Based Regulation for Environmental Protection in Shale Gas Development & Barnett Shale Case Study

Transcription

1 Fact-Based Regulation for Environmental Protection in Shale Gas Development & Barnett Shale Case Study Report on Initiatives of the Energy Institute The University of Texas at Austin Charles Cooke Deputy Director Energy Institute

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4 Why Shale Gas? Shale gas - energy source worldwide 862 trillion cubic feet (TCF) estimate in continental U.S. 23% of gas resource in U.S. in 2010; estimated to be 46% in Concerns for environmental effects (hydraulic fracturing) must be addressed with effective, fact-based regulations and controls. Some of the claims about shale gas development effects may be overstated or not based on good science.

5 How Was the Report Performed? 1. Funding provided by Energy Institute from University funds 2. Engage multi-disciplinary team members: 1. Principal Investigator: Charles (Chip) Groat 2. Co-Principal Investigator: Thomas W. Grimshaw 3. Matt Eastin (News Coverage and Public Perceptions) 4. Ian Duncan (Environmental Impacts) 5. Hannah Wiseman (Regulation, State Enforcement) 3. Develop team member contributions white papers. Outside review of papers. 4. Staff of Environmental Defense Fund assisted with planning and expert review. 5. Integrate individual contributions into a policy-maker - oriented final report. (

6 Issues addressed in the Energy Institute Report released February 17, 2012: Three major shale gas plays Barnett Haynesville Marcellus Media Coverage and Public Perception Environmental Impacts of Shale Gas Development Regulatory and Enforcement Framework

7 Media Coverage and Public Perception: Barnett Shale Area Negative Neutral Positive Newspapers (3) 79% 6% 16% Television (6) 70% 30% 0% Texas Public (1500 respondents, 26 counties) Environmental impacts of Hydraulic Fracturing: 40% 44% 16%

8 Environmental Impacts of Shale Gas Development Issues Addressed: Drill Pad Construction and Operation Hydraulic Fracturing and Flowback Water Management Groundwater Contamination Blowouts and House Explosions Water Consumption and Supply Spill Management and Surface Water Protection Atmospheric Emissions Health Effects

9 Regulatory and Enforcement Framework Federal Regulation Applicable Legislation and Regulations Exemptions from Federal Regulations State, Regional, and Local Regulation Shale Gas Exploration Well Pad Siting and Constructions Equipment Transport Well Drilling and Casing Hydraulic Fracturing Water Consumption and Supply Air Emission Controls Surface Water Protection and Spill Management Controls Wastewater and Solid Waste Management Site Remediation Groundwater Contamination

10 Environmental Effects of Violations and Enforcement Actions Texas (Fractured Shale Wells, FY ) Gravity of Environmental Effect 72 Total Violations Percent of total violations Procedural 53% Minor-no effect 1% Minor Effect 8% Substantial 29% Major 8%

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13 Barnett Shale Case Study Water Quality Characterize geologic and hydrologic elements Inventory of incidences of groundwater or surface water contamination, including their causes Assess actions energy companies have taken to correct, mitigate, and avoid water contamination Identify and characterize other potential sources of groundwater and surface water contamination, including agriculture, industry, and waste disposal Compare the frequency and severity of all alleged incidences of contamination related to shale gas development that have been verified with those related to conventional non-shale oil and gas development

14 Barnett Shale Case Study Water Usage Quantification of water usage during the fracturing process Detailed analysis of water usage, compared with that of other water consumers in the Barnett Shale area Examine and evaluate programs to treat, recycle and reuse water used during hydraulic fracturing

15 Barnett Shale Case Study Urban and Suburban Concerns Air emissions in neighborhoods near drilling well sites and other facilities Increased truck traffic on roadways and neighborhood streets Site development activities, including earthmoving, drill rig mobilization, and waste management Noise abatement and dust-control measures On-site spill control and runoff protection measures Long-term management of shale gas wells

16 From Amy Jaffe, Baker Institute at Rice University

17 Major North American Shale Plays (~1,930 tcf) European, Latin American, African and Pacific Shale Plays (~4,670 tcf) From Amy Jaffe, Baker Institute at Rice University *Over 6,600 tcf of shale according to ARI/EIA report, 2011

18 Energy and the New Europe Shale gas resource development could change geopolitics of Eastern Europe Poland: Est. 300 years of gas reserves Development bans in France, Bulgaria, part of Germany EI expects to conduct in-depth technology assessments in receptive countries Working with Masaryk Univ. in Czech Republic

19 Elsewhere in the World Discussion with Chinese underway to provide technical support and policy assistance. Geosciences Latin American Energy Forum enables leaders to candidly discuss energy issues. DoS, DOE, DOI, IADB, energy/environmental ministries and national oil companies participate.

20 Infrastructure Limits to Shale Development Domestic: Relatively localized bottlenecks, i.e., connection points Domestic: Keystone Pipeline completion one of the largest International: Widespread lack of gathering and transmission system, gas processing plants. Shale gas and oil production capacity will be much slower to be brought to market.

21 SUMMARY The University of Texas at Austin has proposed a detailed Case Study that builds upon other, ongoing research the Institute is conducting on the use of hydraulic fracturing in shale gas development. Findings from the proposed Barnett Shale Case Study will be applicable to other areas of the country where shale gas development is underway or anticipated.

22 Summary Major geopolitical implications for shale development worldwide Potential winners: Eastern Europe, China Potential losers: Russia, Middle East