Managing the Risks of Shale Gas Identifying a Pathway toward Responsible Development

Transcription

1 Managing the Risks of Shale Gas Identifying a Pathway toward Responsible Development How the burdens created from shale gas development impact health, markets, ecosystems, and quality of life An initiative of RFF s Center for Energy Economics and Policy (CEEP) November

2 How the burdens created from shale gas development impact health, markets, ecosystems, and quality of life Overview Activities Burdens Intermediate and Final Impacts Creating Impact Pathways 2

3 Overview Shale gas development raises several new environmental and health concerns that are less well-understood than the risks associated with conventional fossil fuel extraction. In addition, concerns traditionally associated with drilling are being raised in new locations. RFF s Center for Energy Economics and Policy (CEEP) is working to identify how government and industry can responsibly develop this resource. As a first step, we are developing pathways from the activities associated with development of a well to their impacts on human health, ecosystems, markets, and quality of life. 3

4 Overview Activities Burdens Intermediate Impacts Final Impacts Activities are the components of the shale gas development process. They encompass potential sources of risk (from clearing land to sending the produced gas to a major pipeline and to well closure and abandonment). Burdens are created by the activities, such as air pollutants, drilling fluids, noise. They potentially have impacts that matter to people. Intermediate impacts are to the air, water, soil, etc. in which the burdens first reside. Final impacts are the ultimate damage to the environment, human health, etc. Off-road vehicle activity: bulldozers emits particulates reduces air quality may have health effects, e.g., increased risks of respiratory distress 4

5 How the burdens created from shale gas development impact health, markets, ecosystems, and quality of life Overview Activities Burdens Intermediate and Final Impacts Creating Impact Pathways 5

6 Activities Activities that are part of the shale gas development process share many similarities to other forms of gas and oil exploitation, but have some important differences. 6

7 Activities The shale gas development process (activities) has been broken down into nine steps, which will be used to identify sources of burdens and impacts. 1 Site development and drilling preparation 6 Flowback/produced water storage/disposal 2 Vertical drilling 7 Shutting-in, plugging and abandonment 3 Horizontal drilling 8 Workovers 4 Fracturing and completion 9 Upstream and downstream activities 5 Well production and operation 7

8 Sources of Burdens Site development and 1 drilling preparation Vertical drilling Horizontal drilling Fracturing and completion Well production and operation 6 Flowback/produced water storage/disposal Shutting-in, plugging and abandonment Workovers Upstream and downstream activities After locating a site, the area must be leveled, excavated and prepared for drilling. Sources of burdens include: Storage of equipment and materials Clearing of land for roads, well pads, pipelines, evaporation ponds, other infrastructure Construction of roads, well pads, pipelines, evaporation ponds, other infrastructure On-road vehicle activity Off-road vehicle activity 8

9 Sources of Burdens Site development and 1 drilling preparation Vertical drilling Horizontal drilling Fracturing and completion Well production and operation 6 Flowback/produced water storage/disposal 7 8 Shutting-in, plugging and abandonment Workovers This drilling technique bores a single well shaft vertically into the desired formation. Sources of burdens include: Drilling equipment operation at surface Drilling of wellbore underground Casing Cementing On-road vehicle activity Off-road vehicle activity Use of surface water and groundwater Venting of methane Flaring of methane Storage of drilling fluids at surface Use of recycled drilling fluids Disposal of drilling fluids Accidental releases from wellbore (e.g. blowouts) Disposal of drill solids, cuttings 9 Upstream and downstream activities 9

10 Sources of Burdens 1 2 Site development and drilling preparation Vertical drilling One or more lateral wells are drilled from the end of the vertical wellbore, angling to run horizontally through the shale formation Horizontal drilling Fracturing and completion Well production and operation Flowback/produced water storage/disposal Shutting-in, plugging and abandonment Workovers Upstream and downstream activities Sources of burdens include: Drilling equipment operation at surface Drilling wellbore underground Cementing Casing On-road vehicle activity Off-road vehicle activity Use of surface water and groundwater Venting of methane Flaring of methane Storage of drilling fluids at surface Use of recycled drilling fluids Disposal of drilling fluids Accidental releases from wellbore (e.g. blowouts) Disposal of drill solids, cuttings 10

11 Sources of Burdens 1 2 Site development and drilling preparation Vertical drilling Fracturing, a component of the completion process, uses a pressurized mix of sand, water, and additives to fracture shale rock Horizontal drilling Fracturing and completion Well production and operation Flowback/produced water storage/disposal Shutting-in, plugging and abandonment Workovers Upstream and downstream activities Sources of burdens include: Use of surface water and groundwater Perforation of well casing and cementing Hydraulic fracture propagation Introduction of proppant Flushing of wellbore Flowback of reservoir fluids Venting of methane Flaring of methane Storage of fracturing fluids at drill site Use of recycled fracturing fluids On-road vehicle activity Off-road vehicle activity Fracturing equipment operation Accidental releases from wellbore (e.g. blowouts) 11

12 Sources of Burdens 1 2 In this stage, shale gas is being brought up from the ground through pipes. Sources of burdens include: 3 Horizontal drilling Well production and operation Site development and drilling preparation Vertical drilling Fracturing and completion Well production and operation Flowback/produced water storage/disposal Shutting-in, plugging and abandonment Workovers Upstream and downstream activities Well production Compressor operation Condensate tank, dehydration unit operation Venting of methane Flaring of methane Escape of (fugitive) methane Accidental releases from wellbore (e.g. blowouts) 12

13 Sources of Burdens Site development and 1 drilling preparation Vertical drilling Horizontal drilling Fracturing and completion Well production and operation Flowback/produced water storage/disposal Shutting-in, plugging and abandonment Workovers Upstream and downstream activities Storing and disposing of the large amounts of freshwater, produced water, and flowback water can present challenges. Sources of burdens include: On-site pit or pond storage On-site tank storage Transport off-site On-site treatment and re-use Treatment, release by industrial wastewater treatment plants Treatment, release by municipal wastewater treatment plants Removal of sludge and other solids to landfills Deep underground injection Application of wastewater for road de-icing, dust suppression Spraying of produced water on forested land Tilling of produced water 13

14 Sources of Burdens Site development and 1 drilling preparation Vertical drilling Horizontal drilling Fracturing and completion Well production and operation Flowback/produced water storage/disposal Shutting-in, plugging and abandonment Workovers Upstream and downstream activities Preparing a well to be permanently abandoned includes plugging and integrity testing at each stage. Sources of burdens include Migration of fluids to surface, or ground, water Permanent dedication of roads Disposal into stream or river Other disposal methods 14

15 Sources of Burdens Site development and 1 drilling preparation Vertical drilling Horizontal drilling Fracturing and completion Well production and operation Flowback/produced water storage/disposal Shutting-in, plugging and abandonment Workovers Upstream and downstream activities Well workovers may be necessary to perform maintenance or remedial treatments, including removing production tubing. Sources of burdens include: Equipment operation Flowback through well casing Seepage from deep well Gas migration (e.g. biogenic methane) from above formation Accidental releases from wellbore (e.g. blowouts) 15

16 Sources of Burdens Site development and drilling preparation Vertical drilling Horizontal drilling Fracturing and completion Well production and operation Flowback/produced water storage/disposal Shutting-in, plugging and abandonment Workovers Upstream and downstream activities Upstream activities supply inputs to the shale gas development process. Downstream activities move the gas to markets. Sources of burdens include: Manufacturing fracturing chemicals Mining of fine sand for fracturing Methane leakage from pipelines 16

17 How the burdens created from shale gas development impact health, markets, ecosystems, and quality of life Overview Activities Burdens Intermediate and Final Impacts Creating Impact Pathways 17

18 Burdens The activities create burdens, such as air pollutants, drilling fluids, and noise, which have impacts that people care about. Air pollutants Fracturing fluids Condenser & dehydration additives Drilling fluids & cuttings Flowback constituents Habitat & community disruptions Saline water intrusion Produced water constituents Other? 18

19 Burdens Air pollutants Habitat and community disruptions Conventional air pollutants and CO2 Volatile Organic Compounds (VOC) Methane Hydrogen Sulfide Silica Others Habitat fragmentation Industrial landscape Light pollution Noise pollution Odor Population increase Road congestion Seismic vibrations Freshwater withdrawals Stormwater flows Other 19

20 Burdens Drilling fluids & cuttings Base fluids Water Diesel oil Mineral oils Synthetic compounds (esters, paraffins, olefins) Weighting agents Bentonite Barite Hematite Calcium carbonate Ilmenite Thickeners Xanthan gum Guar gum Glycol Carboxymethylcellulose Polyanionic cellulose Thinners and deflocculants Acrylates Polyphosphates Lignosulfates Lignites Cuttings Naturally occurring radioactive material (NORM) Turbidity 20

21 Burdens Fracturing fluids Base fluids Water Oils (including diesel) Methanol Polymers Acids (hydrochloric, muriatic) Potassium chloride Proppants Silica sand Resin-coated sand Man-made ceramics Radioactive minerals Foaming agents Nitrogen Carbon dioxide Alcohols Glycol ethers Gelling agents Guar gum and derivatives Cellulose derivatives Breakers and cross-linkers Enzymes Oxidizers (ammonium persulfate) Borate salts Other additives Biocides, bactericides, microbicides (glutaraldehyde) Corrosion and scale inhibitors (ethylene glycol, methanol, ammonium chloride) Friction reducers (polyacrylamide, mineral oil, petroleum distillates) Iron control agents (citric acid) Surfactants (Isopropanol, methanol) Fluid-loss agents (sands, flours, 21 starches, clays)

22 Burdens Flowback constituents (other than fracturing fluids) Total dissolved solids Chlorides (sodium, potassium) Molybdenum Bromides (as precursor of DBPs Zinc in drinking water) Arsenic Carbonates Aluminum Sulfates Lithium Nitrates Total suspended solids Iron solids (iron oxide, iron sulfide) Sand, silt and clay Metals Calcium Magnesium Barium Strontium Lead Mercury Manganese Naturally occurring radioactive materials (NORM) Radium-226 Radium-228 Uranium Thorium Acid gases Carbon dioxide Hydrogen sulfide Oil and grease Aromatic hydrocarbons (BTEX) Bacteria 22

23 Burdens Produced water constituents Total dissolved solids Manganese Chlorides (sodium, potassium) Molybdenum Bromides (as precursor of DBPs Zinc in drinking water) Arsenic Carbonates Aluminum Sulfates Lithium Nitrates Total suspended solids Iron solids (iron oxide, iron sulfide) Sand, silt and clay Metals Calcium Magnesium Barium Strontium Lead Mercury Naturally occurring radioactive materials (NORM) Radium-226 Radium-228 Uranium Thorium Acid gases Carbon dioxide Hydrogen sulfide Oil and grease Aromatic hydrocarbons (BTEX) Bacteria 23

24 Burdens Condenser & dehydration additives Saline water intrusion Triethylene glycol Other Other? Occupational accidents Occupational exposures 24

25 Impacts Intermediate impacts are to the air, water, soil, etc. in which the burdens first reside. Groundwater Surface water Soil quality Air quality Habitat disruption Community disruption Occupational hazard Final impacts are the ultimate damage to the environment, human health, etc. Human health impacts Morbidity Mortality Market impacts Agriculture Tourism Water-using industries Other Ecosystem impacts Biodiversity loss Endangered species Other species population change Other Climate change impacts Quality of life impacts Recreation Aesthetics Time loss Other 25

26 How the burdens created from shale gas development impact health, markets, ecosystems, and quality of life Overview Activities Burdens Intermediate and Final Impacts Creating Impact Pathways 26

27 Creating Impact Pathways Activities Burdens Intermediate Impacts Final Impacts Site development and drilling preparation Vertical drilling Horizontal drilling Fracturing and completion Well production and operation Air pollutants Drilling fluids and cuttings Saline water intrusion Fracturing fluids Flowback constituents (other than fracturing fluids) Groundwater Surface water Soil quality Air quality Habitat disruption Community disruption Human health impacts Market impacts Ecosystem impacts Climate change impacts Quality of life impacts Flowback and produced water storage/disposal Produced water constituents Occupational hazard Shutting-in, plugging and abandonment Condenser and dehydration additives Workovers Upstream and downstream activities Habitat/community disruptions Other 27

28 Creating Impact Pathways Creating Impact Pathways Activities Burdens Intermediate Impacts Final Impacts Site development and drilling preparation Storage of equipment and materials Clearing of land for roads, well pads, pipelines, evaporation ponds, other infrastructure Construction of roads, well pads, pipelines, evaporation ponds, other infrastructure On-road vehicle activity Off-road vehicle activity

29 Creating Impact Pathways Creating Impact Pathways Activities Burdens Intermediate Impacts Final Impacts Site development and drilling preparation Storage of equipment and materials Clearing of land for roads, well pads, pipelines, evaporation ponds, other infrastructure Construction of roads, well pads, pipelines, evaporation ponds, other infrastructure On-road vehicle activity Off-road vehicle activity Air pollutants Drilling fluids and cuttings Saline water intrusion Fracturing fluids Flowback constituents (other than fracturing fluids) Produced water constituents Condenser and dehydration additives Habitat/community disruptions Other

30 Creating Impact Pathways Creating Impact Pathways Activities Burdens Intermediate Impacts Final Impacts Site development and drilling preparation Storage of equipment and materials Clearing of land for roads, well pads, pipelines, evaporation ponds, other infrastructure Construction of roads, well pads, pipelines, evaporation ponds, other infrastructure On-road vehicle activity Off-road vehicle activity Air pollutants Conventional air pollutants and CO2 o Volatile Organic Compounds (VOC) Methane Hydrogen Sulfide Silica Habitat/community disruptions Habitat fragmentation Industrial landscape Light pollution Noise pollution Odor Population increase Road congestion Seismic vibrations

31 Creating Impact Pathways Creating Impact Pathways Activities Burdens Intermediate Impacts Final Impacts Site development and drilling preparation Storage of equipment and materials Clearing of land for roads, well pads, pipelines, evaporation ponds, other infrastructure Construction of roads, well pads, pipelines, evaporation ponds, other infrastructure On-road vehicle activity Off-road vehicle activity Air pollutants Conventional air pollutants and CO2 o Volatile Organic Compounds (VOC) Methane Hydrogen Sulfide Silica Habitat/community disruptions Habitat fragmentation Industrial landscape Light pollution Noise pollution Odor Population increase Road congestion Seismic vibrations Groundwater Surface water Soil quality Air quality Habitat disruption Community disruption Occupational hazard 31

32 Creating Impact Pathways Creating Impact Pathways Activities Burdens Intermediate Impacts Final Impacts Site development and drilling preparation Storage of equipment and materials Clearing of land for roads, well pads, pipelines, evaporation ponds, other infrastructure Construction of roads, well pads, pipelines, evaporation ponds, other infrastructure On-road vehicle activity Off-road vehicle activity Air pollutants Conventional air pollutants and CO2 o Volatile Organic Compounds (VOC) Methane Hydrogen Sulfide Silica Habitat/community disruptions Habitat fragmentation Industrial landscape Light pollution Noise pollution Odor Population increase Road congestion Seismic vibrations Groundwater Surface water Soil quality Air quality Habitat disruption Community disruption Occupational hazard Human health impacts Market impacts Ecosystem impacts Climate change impacts Quality of life impacts

33 Creating Impact Pathways Creating Impact Pathways Activities Burdens Intermediate Impacts Final Impacts Site development and drilling preparation Storage of equipment and materials Clearing of land for roads, well pads, pipelines, evaporation ponds, other infrastructure Construction of roads, well pads, pipelines, evaporation ponds, other infrastructure On-road vehicle activity Off-road vehicle activity Air pollutants Conventional air pollutants and CO2 o Volatile Organic Compounds (VOC) Methane Hydrogen Sulfide Silica Habitat/community disruptions Habitat fragmentation Industrial landscape Light pollution Noise pollution Odor Population increase Road congestion Seismic vibrations Groundwater Surface water Soil quality Air quality Habitat disruption Community disruption Occupational hazard Human health impacts Morbidity Mortality Climate change impacts Quality of life impacts Recreation Aesthetics Time loss Other

34 Creating Impact Pathways Creating Impact Pathways Activities Burdens Intermediate Impacts Final Impacts Morbidity On-road vehicle activity Conventional air pollutants and CO2 Noise pollution Air quality Community disruption Climate change impacts Aesthetics Road congestion Time loss

35 Managing the Risks of Shale Gas Identifying a Pathway toward Responsible Development How the burdens created from shale gas development impact health, markets, ecosystems, and quality of life An initiative of RFF s Center for Energy Economics and Policy (CEEP) November