Frequently asked questions
What is shale gas?
Shale gas is natural gas that is trapped within shale rock formations. Shales are fine-grained sedimentary rocks that can be rich in oil and natural gas. In the past decade, particularly in the United States, horizontal drilling combined with hydraulic fracturing has allowed access to large reservoirs of shale gas, completely transforming the country’s natural gas industry and energy supply dynamics.
Europe is estimated to have nearly as much technically recoverable shale gas as the United States. Poland alone could have as much as 1.9 trillion cubic metres of gas.
How different is it from natural gas?
There is absolutely no difference. Shale gas is natural gas that comes from shale formations instead of other rock strata like limestone or sandstone. Natural gas from shale is just as clean as natural gas from any of those other rock layers and just as reliable as a fuel source for European households, businesses and industries.
What is hydraulic fracturing?
Hydraulic fracturingis a process used by energy companies to release the natural gas and oil trapped in rock formations. Today, nearly nine out of 10 onshore natural gas and oil wells require hydraulic fracturing to remain or become viable. This process is also deployed in other energy technologies, such as geothermal wells.
How does hydraulic fracturing work?
Fracturing fluid– 99.95% water and sand with minimal quantities of additives - is injected at high pressure to the rock strata several thousand metres below the surface. The force of the water creates a network of tiny fissures in the rock and the water flow acts as a delivery mechanism for the sand, which finds its way into these newly created cracks to ensure they remain open. This creates passageways through which natural gas can travel to get to the wellbore.
The hydraulic fracturing process is usually performed at the start of the life of a well. On average, the process takes between three to five days to complete.
Regulation
Shouldn’t shale gas be banned in Europe?
It has been consistently demonstrated that when best practices are followed shale gas extraction poses no risk to human health or the environment. There can be no justification for a ban when we know that existing technology andregulationare perfectly able to manage all risks from shale gas operations.
Is the current EU regulatory framework sufficient to deal with shale gas exploration?
Astudy carried out for the European Commission in 2011concluded that the existing European regulatory framework for shale gas extraction is sufficient. As the scale and commercial viability of shale gas deposits is still being established in Europe, any further regulation would hamper the realisation of its full potential.
Environment and Safety
Do shale gas operations contaminate local water supplies?
The process ofhydraulic fracturingcannot contaminategroundwater aquiferswith fracturing fluids, for the reason that there is no pathway between the fractures and aquifers. Fracturing takes place many hundreds of metres below drinking water supplies. In addition, best practice well construction techniques utilise a minimum of two barrier layers, sealed with steel casing and cement, to isolate the well from groundwater.
All wells are pressure-tested to ensure integrity before hydraulic fracturing takes place and operators routinely test drinking water around wells to monitor and evaluate any potential contamination.
Will shale gas development overly stress fresh water supplies?
Operators are committed to ensuring that theuse of fresh wateris kept to a minimum. In addition, wherever possible, the industry recycles or reuses flowback water, decreasing the aggregate amount of water used. It is our objective to ultimately recycle 100% of all flowback water. The production of natural gas usinghydraulic fracturinguses far less water than other forms of energy generation, such as coal-fired or nuclear.
Which chemicals are used in a typical hydraulic fracturing operation?
Hydraulic fracturing fluidshave an insignificant proportion of chemical additives which fulfill very specific purposes, such as bacteria reduction, to improve the overall productivity of the well. A typical fracture treatment will use very low concentrations of between 3 and 12 additive chemicals, depending on the characteristics of the water and the shale formation being fractured. The industry takes the safety of its operations very seriously to prevent any release of chemical additives tosurface water, groundwater,landorair. All additives used fully-comply with appropriateEuropean regulations.
Why do companies refuse to disclose the chemicals that are used in hydraulic fracturing?
The industry is committed to keeping citizens fully-informed aboutchemical additives used in hydraulic fracturingoperations in their local area. In addition, we support full disclosure to appropriate regulatory authorities of the chemical additives used in any given well. To this end, we will develop an online information resource along the lines of the US FracFocus website ().
Does shale gas increase greenhouse gas emissions?
A recent report by the International Energy Agency shows the opposite: the shale gas boom in the US has enabled areduction in energy-related CO2emissions, by 450m tonnes over the past five years, due to a major shift from coal to gas-fired power plants.
What is natural gas?
Natural gasis amixture of several hydrocarbon gases, including methane (between 70% and 90%), ethane, propane, butane and pentane, as well as carbon dioxide, nitrogen and hydrogen sulphide. The composition of natural gas can vary widely, depending onthe gas field. Natural gas is referred to as “wet” when hydrocarbons other than methane are present, “dry” when it is almost pure methane, and “sour” when it contains significant amounts of hydrogen sulphide.
What are unconventional sources of gas?
Unconventional sources of gas are trapped underground by impermeable rocks, such as coal, sandstone and shale. There are three types of unconventional gas: shale gas (found in shale deposits); coal bed methane, or CBM also known as coal seam gas (CSG) in Australia (extracted from coal beds); and, tight gas (trapped underground in impermeable rock formations).
How is unconventional gas produced?
While different techniques are applied, depending on the type of gas being extracted, one common method is hydraulic fracturing (also known as fracking): a well is drilled, and large volumes of water (mixed with some sand and chemicals) are injected underground under high pressure to create cracks in the rock which remain open. This frees the trapped gas allowing it to flow into the well bore so it can be produced. Another key technology is horizontal drilling which enables the well to penetrate significantly more rock in this gas bearing strata, increasing the chances of gas being able to flow into the well.
For how long has unconventional gas been produced?
In the United States, tight gas has been produced for more than four decades and coalbed methanefor more than two decades. Production of shale gas in the United States began much more recently, and has rapidly increased from 2005 onwards. In 2010, shale gas represented more than 20% of United States gas production.
If unconventional gas has been known about for so long, why the recent interest?
Technological advances over the last two decades, particularly concerning hydraulic fracturing, and soaring gas prices in the early 2000’s prompted drillers in the United States to pursue development of unconventional gas types more vigorously. The impressive growth in production in the United States over the last few years has actually led to a significant decline in gas prices, but output still remains robust and other countries have been prompted to explore whether they could enjoy similar results. Importing countries are keen to explore this, because if they are able to produce significant volumes of unconventional gas, they would have greater energy security and more energy independence – reducing a country’s reliance on costly energy imports. Alternatively some producers would be able to export more gas.
Dacă gaze neconvenționale a fost cunoscute de atât de mult timp, de ce a crescut interesul acum?
Progresele tehnologice din ultimele două decenii, în special cu privire la fracturarea hidraulică, și creșterea prețurilor la gaze de la începutul anilor 2000 au determinat sondorii din Statele Unite sa cerceteze mai viguros exploatarea tipurie de gaze neconvenționale. Creșterea semnificativă a producției în Statele Unite în ultimii ani a condus de fapt la o scădere semnificativă a prețurilor la gaze, determinand si alte țări să analizeze dacă s-ar putea bucura de rezultate similare. Țările importatoare sunt dornice de a explora acest lucru, pentru că în cazul în care pot să producă volume semnificative de gaze neconvenționale, vor avea securitate energetică mai mare și o mai mare independență energetică - reducand dependența țarii de importurile costisitoare de energie. Alternativ, unii producători ar putea exporta mai mult gaz.
How muchunconventional gas is currently produced?
As of 2010, unconventional gas production reached an estimated 15% of global gas production. The majority comes from North America, with around 420 bcm produced in 2010, half of which is tight gas.Throughout the rest of the world, coalbed methane production is estimated at approximately 10 bcm and tight gas at 60 bcm. Shale gas output increased by a factor of 11 over the last decade, to reach just under one-third of total unconventional gas production in 2010. However, as of 2010, shale gas output was still concentrated in the United States.
Have countries other than the United States made much progress in their unconventional gas exploration efforts?
Canada already produces tight gas, coal bed methane (CBM) and small amounts of shale gas. Although years behind the United States, some countries have made notable strides forward in exploring their own unconventional gas sources. Australia has shown good CBM potential, which is already being produced in small quantities. But Australia’s future success most likely lies in projects that focus on producing LNG from CBM. Three such projects are committed to start exporting between 2014 and 2016. China, India and Indonesia have also produced small amounts of unconventional gas and are aggressively looking at ways to increase their respective volumes. Despite strong interest throughout Europe, there are areas of public concern – such as high population densities and issues surrounding the potentially damaging environmental impact – which are hampering progress. A few other countries, such as Argentina, Algeria and Mexico, may also have large shale gas potential.
What is the recipe for success with unconventional gas production?
To effectively replicate the success story of North America, four core factorsmust be addressed:
- Geology: In order to identify potentially good areas to drill, access to high-quality geological data is essential.
- Companies: Companies involved in operations must have first-rate engineers, a sufficient number of available rigs, and significant experience of drilling.
- Costs: Operations depend highly on the quality of the gas field, leading to a wide range of costs within the United States. There are still many uncertainties on how expensive such production would be outside of North America.
- Country: Before undertaking such an exercise, a country must assess whether: a) there is an internal and external market for the gas; b) landowners and local communities will accept drilling; c) all environmental risks have been taken into account and addressed; d) the appropriate fiscal and regulatory frameworks are in place; e) there is an economical way to link the project to pipeline infrastructure already in place.
Is unconventional gas production bad for the environment?
There are concerns about the environmental impact of unconventional gas production, notably in terms of land use, water use and the potential for contamination of drinking water, and methane and other air emissions. In May 2012, a specialWorld Energy Outlook (WEO)report looked at the environmental impact of unconventional gas production, including analysis of the "Golden Rules" that are needed to support a potential "Golden Age of Gas". TheUnited States Environmental Protection Agency (US EPA)is currently conducting an investigation, the results of which are expected in 2012.
Are natural gas prices linked to oil?
There are different types of natural gas prices – wholesale prices (such as hub prices, border prices, city gate) and end-user prices which differ depending on the customer served (industrial, or household). Prices typically include the cost of gas supplies, transmission, distribution and storage costs, as well as retailer's margin andtaxes. End-user prices and wholesale prices vary widely across regions. Some wholesale gas prices are linked to oil prices, through an indexation present in long-term supply contracts in Continental Europe and OECD Pacific, but this represents only one fifth of global gas demand. Gas-to-gas competition (spot prices) can be found in North America, the United Kingdom and parts of Continental Europe and represents one third of global gas demand. Prices in many other regions are often regulated: they can be set below costs, at cost of service, or be determined politically, reflecting perceived public needs. The IEA follows mostly thereported market prices in Europe, North America and the OECD Pacific region.
To what extent can natural gas contribute to meeting CO2emissions reductions?
While natural gas (which is a lower-carbon fuel relative to other fossil fuels) contributes to lowering CO2emissions by displacing coal or oil, an increased share of natural gas in the global energy mix is not sufficient on its own to put the world on a carbon emissions path consistent with an average global temperature rise of no more than 2°C. To achieve this target requires a greater shift to low-carbon energy sources, increased efficiency in energy usage, and new technologies, including carbon capture and storage.
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