Frodsham 5 July 2017 Tom Pickering Operations Director, INEOS - - PowerPoint PPT Presentation

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Frodsham 5 July 2017 Tom Pickering Operations Director, INEOS - - PowerPoint PPT Presentation

Apr 10, 2023 252 likes •627 views

Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level Frodsham 5 July 2017 Tom Pickering Operations Director, INEOS Shale www.ineosshale.com www.ineosshale.com

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Frodsham

5 July 2017 Tom Pickering Operations Director, INEOS Shale

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INEOS Licences England

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INEOS Licences - Cheshire

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INEOS Licences - Frodsham

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  • Why explore for commercial shale gas reserves? What benefits

would the country derive from more gas production?

  • What does the shale gas development process look like?
  • Can shale gas development be acceptable from a safety and

environmental perspective?

  • What are the key objections to shale gas development in the UK and

how can they be addressed?

  • What does the independent evidence say?

The case for shale gas

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UK gas production is in rapid decline

  • Total North Sea gas and oil

production has been rapidly declining since 2000

  • UK reliance on gas imports has

grown to over 50% of demand

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UK Energy Mix - Gridwatch

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Why do we need gas?

  • Heat energy and power generation
  • 84% of UK homes rely upon gas heating
  • Gas is used to produce many items that we use every day
  • Clothing, packaging, auto, pharmaceuticals, cosmetics, electronics
  • To support the switch to renewables
  • Gas supports intermittent renewables energy production
  • Growth of renewable capacity takes time
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We Keep People…

Healthy Housed Mobile Clothed And…in Touch

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What are the benefits of a local shale gas industry?

  • Energy Security
  • We rely upon imports for more than 50% of our gas demand
  • Forecast to increase to 80% by 2035
  • Climate Change
  • Local shale gas emits 10% less greenhouse gases than imported gas
  • For power generation, shale gas has less than half the emissions of coal
  • Jobs, Investment and Community Benefits
  • Potential for £33b investment and 64,000 new jobs
  • 6% of revenues (£1m per well) to landowners, residents and local communities
  • Balance of Payments
  • Today we send over £7b pa overseas to purchase gas (£20m every day)
  • Why import from countries with questionable regulation and human rights

records when we can produce our own gas?

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Geological Review & Surface Management

How is INEOS planning to evaluate the potential of economically producing gas from new and existing licenses?

July 2017 Mid 2018 Early 2019 Mid/Late 2019 Late 2018 2020

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Seismic data acquisition

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

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Stages of Site Development – Drilling

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Stages of Site Development - Hydraulic Fracturing

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Stages of Site Development - Production

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UK four-well gas production site – aerial view

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UK four-well gas production site – ground level view

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A common concern - Well Spacing

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What are the objections?

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Objections

"Fossil fuels are bad for the climate. We should be developing renewables instead. Starting a new fossil fuel industry at this point is going to further exacerbate climate change"

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Gas vs Renewables?

  • 84% of UK homes use gas for heating (61% for cooking)
  • To electrify these for renewable use will cost over £250b and take

several decades

  • To do this by 2050 means converting nearly 2000 homes every single day
  • Plus upgrades to the national power infrastructure to supply these homes
  • In the future, gas could produce hydrogen by steam reforming,

with the CO2 captured and sequestered

  • The hydrogen would be distributed via the existing gas network

This is not a gas vs renewables debate - we need both

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  • Locally produced shale gas has over 10% less lifecycle greenhouse

gas emissions than imported gas

  • Locally produced shale gas has less than half the greenhouse gas

emissions of coal for power production We need gas, today we import >50%, and this is forecast to increase to 80% by 2035 The question is not whether we need gas, but where will it come from?

What is the climate performance of gas?

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Objections

"Fracking risks causing water contamination, and uses cancer causing chemicals The US has seen many examples of this"

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  • There have been some incidences of contamination in the US caused by

the failure of wells - that is, failure of the wellbore integrity as it passes through the shallow aquifer layer

  • UK regulations are amongst the most stringent in the world, and include;
  • Multiple well casing layers with interbedded cement, with design signed off by the

regulator and an independent well examiner

  • Baseline water testing for 12 months before fracturing
  • Continued monitoring during operations and production
  • All chemicals used in the fracturing process must be approved as non-hazardous

to groundwater by the EA

  • There have been no known contamination incidents in shallow aquifers

caused by migration from hydraulic fracturing of deep shales

Has fracking caused such water contamination in the US?

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Well Integrity

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Objections

"Fracking risks causing seismic activity This was seen in 2 UK wells in Lancashire in 2011 There has been a huge increase recently in tremors in Oklahoma associated with fracking"

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  • Hydraulic fracturing can cause seismic

activity - in the vast majority of cases

  • nly detectible by sensitive instruments
  • The recent spate of Oklahoma tremors

was caused by water reinjection, and not by hydraulic fracturing

  • 2011 Lancashire tremors were very

minor and caused no damage. (25- 100's occur naturally every year). However, UK regulations enhanced to require seismic surveys before fracturing, to map faults.

  • Regulations also include requirement to

monitor during operations, and are the most stringent in the world.

Will fracking cause earth tremors in the UK?

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Objections

"There are hundreds of peer reviewed articles that attest to the bad health impacts of fracking"

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“The currently available evidence indicates that the potential risks to public health from exposure to emissions associated with the shale gas extraction process are low if operations are properly run and regulated.”

Public Health England: Review of the potential public health impacts of exposures to chemical and radioactive pollutants as a result of shale gas extraction

The evidence has been reviewed

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Objections

"Fracking as an industrial process is inherently risky and under the precautionary principle, we should ban it until it can be proved to be 100% guaranteed"

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  • Oil and Gas Authority
  • Environmental Regulations

Environment Agency (England, Wales & N. Ireland)

  • The Health and Safety Executive
  • Local Planning Approval
  • Independent Well Verification

UK Shale Regime & Regulations

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  • Virtually nothing we do in everyday life is

completely without impact or risk

  • If we insisted upon 100% guarantees and no

impact in all aspects of our daily lives, we would be without food, water, and shelter - never mind transport, warmth, and clothing, or any of the luxuries that we enjoy every day

  • Shale is nothing special vs many other things

we do every day

  • The strict regulatory regime in the UK

ensures that the health, safety and environmental risks associated with shale gas production are very low

Should we ask for 100% guarantees?

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Royal Society Report: Shale gas extraction in the UK: a review of hydraulic fracturing “The health, safety and environmental risks associated with hydraulic fracturing (often termed ‘fracking’) as a means to extract shale gas can be managed effectively in the UK as long as operational best practices are implemented and enforced through regulation.”

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“The currently available evidence indicates that the potential risks to public health from exposure to emissions associated with the shale gas extraction process are low if operations are properly run and regulated.”

Public Health England: Review of the potential public health impacts of exposures to chemical and radioactive pollutants as a result of shale gas extraction

The evidence has been reviewed

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  • We need gas for several decades, even with aggressive renewables

growth and efficiency gains

  • Energy Security - our country is importing over 50% of demand today

and this import is forecast to increase

  • Gas is by far the most climate friendly fuel, and is a key part of the UK's

plans to reach climate targets

  • Local shale gas development can bring jobs, investment, community

benefits, tax revenues, and improved balance of payments

  • Key independent authorities say the safety, health and environmental

risks are low given our stringent UK regulatory regime

In Summary

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Thank you

www.ineosshale.com Twitter: @INEOS_shale shale.information@ineos.com