Thorpe Salvin Parish Council

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Maximillian Jones
6 years ago
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1 Thorpe Salvin Parish Council 13 February 2017

2 INEOS Who Are We? A leading global chemical company Sales $40bn 17,000+ employees* 65 manufacturing sites in 16 countries including 6 in the UK 60 million tonnes of chemicals capacity 20 million tonnes of refinery products (400,000 bbls/day) We also produce gas from the North Sea to serve 1 in10 homes Our name isn t on the product label but we make the vital chemicals that go into the manufacture of everyday items

3 We Keep People Mobile Healthy Housed Clothed And in Touch

4 Virtual pipeline to bring US Shale Gas to the UK North Sea gas supplies reducing Invested $2bn in bringing shale gas to Europe Boosts UK manufacturing Secures 10,000 direct and indirect jobs at Grangemouth Ethane (from shale gas) used for fuel and as a raw material

5 UK Energy Mix Gridwatch We need a mix of energy sources to generate electricity Coal is being phased out Wind and solar are intermittent Gas provides the flexibility to balance the mix It s not just about electricity generation

6 UK natural gas supply / demand 2015 Exports

7 Gas in the UK economy 84% of UK homes use gas for heating, 61% for cooking Second Gas is used level to produce many items that we use every day Third Clothing level Packaging Auto Healthcare and Cosmetics Electronics Renewable technology Gas is needed in the energy mix until 2040 and later

8 Gas in the UK economy - the future Renewable energy is up from 8% in 2015 to 31% in TWh of gas is consumed in 2030 (= 63% of 2015 demand) Click 72% to of edit this Master gas will be text imported styles Indigenous gas emits 10% less GHG than imported gas 'Gone Green' scenario Conclusion - we need the most climate friendly fuel even in future green scenarios

9 UK Shale opportunity - we did our homework Are there likely to be viable shale gas reserves in the UK? Yes, but we need to drill and test production to confirm that What experience do we need to bring in to help us? Assembled a team of UK onshore experts and brought in top expertise from US on shale gas Fifth geology, level drilling and fracking What can we learn from the US experience? Analysed data on evolution of techniques and best practice and on incidents and accidents to understand how and why they arose Can we extract gas safely and protect the environment? Yes, through engineering excellence combined with operational rigour

10 Geological Review & Surface Management How is INEOS planning to evaluate the potential of economically producing gas from new and existing licenses? US and UK Expertise

11 UK Shale Regime & Regulations Oil and Gas Authority Environmental Regulations Environment Agency (England, Wales & N. Ireland) The Health and Safety Executive Local Planning Approval Independent Well Verification

12 INEOS Licences

13 INEOS Licences East Midlands

14 INEOS Shale - Likely activities 2017 to 2020 Currently reviewing existing seismic and other data Expect to undertake seismic data acquisition in 2017 Existing and new seismic data will inform planning applications for wells Vertical coring wells to understand the gas content in the shale rock Start in mid 2017 Results of core wells will inform planning applications for appraisal Horizontal wells to be hydraulically fractured and flow tested Further core wells Results of flow tests will tell us if commercial production is viable Like any development, all well planning applications are subject to Public consultation before submission Further consultation during consideration of the planning application

15 Community Benefits INEOS is committed to sharing the benefits of shale gas development with landowners and the community 6% of shale Fourth gas level revenues will be distributed to homeowners, landowners & communities close to well sites

16 Seismic data acquisition Vibroseis trucks and receivers (geophones) 2D Seismic image 3D Seismic image Tractor mounted drill

17 Stages of Site Development Drilling rig

18 Stages of development - Hydraulic Fracture Spread

19 Stages of Site Development - Production

20 UK four-well gas production site ground level view

21 Well Integrity

22 Multi-well pads reduce land requirement

Fracking Additives Uses In Everyday Life GUAR GUM Thickens water and found in cooking Fifth sauces, level

a low sodium table salt substitute SCALE INHIBITORS Used in antifreeze FRICTION REDUCERS Used in water treatment

stomach BREAKERS Used in detergent and hair cosmetics CORROSION INHIBITORS Prevents corrosion of pipes.

23 Fracking Additives Uses In Everyday Life GUAR GUM Thickens water and found in cooking Fifth sauces, level toothpaste and ice cream CROSSLINKERS Used in soap and cosmetics BRINE Typically produced with potassium chloride, a low sodium table salt substitute SCALE INHIBITORS Used in antifreeze FRICTION REDUCERS Used in water treatment and face creams HYDROCHLORIC ACID Used in food production, cleaning swimming pools and created naturally in the stomach BREAKERS Used in detergent and hair cosmetics CORROSION INHIBITORS Prevents corrosion of pipes. Used in pharmaceuticals, food flavouring, cosmetics and beverage production ADJUSTING AGENTS Used in soap, water softener, glass and ceramics

24 Concerns raised & how industry addresses them CONCERN RESOLUTION Earthquakes Chemicals in fracking Aquifer protection Industrialisation of the countryside Truck movements Fugitive emissions 3D seismic to identify and avoid faults and use of seismic monitoring system Must be disclosed and classified as non-hazardous by Environment Agency Multiple layers of steel and cement to provide well integrity Very small footprint after drilling and fracking operation ends Established road network combined with traffic management plan Closed loop systems and ongoing monitoring Baseline monitoring On-going monitoring Responsibility for damage Public health Waste water disposal NORM s and other containments Fracking under property Will be undertaken ahead of operations Wells, equipment and surrounding area to be monitored If we cause damage it is our responsibility to pay Public Health England satisfied no issue if properly run and regulated Captured, treated and disposed of safely & under licence Captured, treated and disposed of safely & under licence Possible but in a hole 15-23cm wide at more than 2.4km below ground

25 Our Commitment To Communicate We will be open and honest in our dealings with stakeholders We will explain our plans in detail with local communities We will keep stakeholders informed and involved in our activities

26 Thank you

Parish and Town Councillors meetings Chesterfield, Frodsham and Malton

Parish and Town Councillors meetings Chesterfield, Frodsham and Malton 9-11 May 2016 This is a consolidation of the three presentations given in each regional area Presenters Tom Crotty - Communications