APPEA's Natural Gas Repulsions

8/13/2019 APPEA's Natural Gas Repulsions

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An lntroduction to Natural Gas from Shale andTight Rocks

i Nstursl Gss from $hole qnd Tight sourcest

'gei*frt'sfcr A ust'rclic

fficgimna{ fficve{mPmemt

. studies show that developing an Austrarian shale andtight naturar gas industry wi'generate significant

benefits in

regional areas" employingtho*und' ofpeople in construction' operations' infrastructure

and support servlces'

. Many companies are investing in exploration and infrastructurefor the next wave of naturar gas development'

.TheavailabilityofadditionalnaturalgasfromshaleandtightrockswillstimulatetheAustralianeconomy'generating new job opportunities across

a range of industry sectors'

Austrolion bosins with shole gos polenliolAustralia'sEconomY

Natural gas PlaYs a major role in

Australia's economic growth and

energy securitY' Gas fuels 25%

of all energY uses - PoweringindustrY, heating homes and

McArthur

ProductionSouth Australia has the

most advanced shaleand tight gas Projects,

including Australia's fi rst

shale gas well to enter

Production'

Drummond

I

OtuJaY ^ \\ /,- /\r 'v'\ GiPPsland

Clarence-Moreton

PotentialAustralia has an

estimated 437 TCF of

recoverable shale gas

reserves. 1 TCF is enoughgas to Power a citY the

size of Perth for10 Years.

oarring-./ornn"o.n r.rsw J,i'*._ , f SydneY

W Crrr"n shale gas exploration activity

N crr."n, shale oil exploration activity

I-l Potenfat shale oil/gas basins

1. Source: Engineering Energy: UnconventionalGasPrcc-:::-

*i f tr" C il of LearnJ Academies(June 2013)'


3/12

Supp les

': - -' -a : --:i

'-.'= - -::'3 . ss-PPYi^8-:^ Ar-rra ia and New South

. Development of natural gas from shale and ltght sourcesin Western Australia and the Northern Territory couldalso support the growing demand for domestic gas.

. Greater gas development in Australla will increase supplysecurity and price competition as it has in the UnitedStates of America (USA).

. lf the present exploration programs are successful,future development will be able to support secure anddiversified domestic gas projects, with the potential tosupport liquefied natural gas (LNG) projects'

e8ea*a Energy. Natural gas currently offers the cleanest viabLe

source of baseload and peaking power in Australia.

. Australia's naturalgas resources can s gnificantlyreduce greenhouse gas em ss ors b1'r:c ac ng coalas a power fue ,

. Energy-related carbc' :the USA have :':::=: -2012,ffe, o.\::: :.=

)o

--

HAi**ai,)A\Ix[MAtJ

Gas Heatrng

Cooking

Se_cune Energya

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Learn more: www.appea.com.au


4/12

An lntroduction to Natural Gas from Shale and Tight Rocks

New EmergY timderEr&undNaturalgasisfoundinmanyformsofrock,includingshale,coalseamsandsandstone.Tight gas reservoirs are found in low permeability sandstones'

Natural gas is used to

frll millions of households and businesses in Australia'ligr -4._ .,*. -nt

''*r.{*{i.{ar-ri

Sydney HalbourBridge

1,149m long UndergroundShale gas is found as

deep as five kilometresunderground - more than4 times the length of theSydney Harbour Bridge,

which is 1,149m long'

ExplorationWA currentlY has onlY one

tight gas well in Production,while the NT has no Productionof natural gas from shale or tight

rocks. ExPloration is underwaY in

several regions, looking fornatural gas sources suitable

for commercialproduction.

:ri:,*}*$if$;$1$iil1];onshore IOil and Icas Riq I

+3m I Gas Ia fp* Well If 1.5m t*'\ f *d9=\, ft

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Global EnergyShale gas production is

expected to be the biggestsingle source of new globalenergy over the next

decades.

0),

:5:-.=i-:

Barrier RockLayers of impermeable

rock create a natural sealpreventing gas or fluids

found deep undergroundfrom reaching near

Deoo (

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6/12

An lntroduction to Natural Gasfrom Shale and Tight Rocks

NoturqlSt'cges

Gos from Shole ond Tight SourcesCr Devlo7rnenf

Signing Leases arrd

Securing FermitsBefore anY activitY can take

place, industrY must first consult

wlth pastoratists and Traditional

Owners to obtain access to the

land for exPloration under agreed

conditions.

Exploration companles also conductenvironmental and heritage

,,ua,", to identifY areas for sPecial

management' This informationis

included in Plans submitted for

regulatorY aPProval aheadof

anY industrY activitY'

eonstructimg the Weln Site

Constructioncanonlybeginonceregulatoryapprovalissecured and the location for the

well pad is agreed by the

.orOunn pastoralists and TraditionalOwners'

Well pads vary in size' but duringthis phase between 2-5

hectaresoflandwillusuallybecleared.Drillingmultiplewells from one well pad minimises

land use and the

number of roads needed'

'Grth"ting Seisrmie BataSeismic imaging is used to help

understand *nit':"^t ::i;*l :::earth. Soundwaves are bounced

off underground rock structures

and the echoes revear possibre orr-and gas-bearing formations.

Earth scientists study the echoesto determine the best locabon

for drilling and minimise the numberof wells needed'

ManY UsesHYdraulic fracturing can

also be used to stimulategroundwater wells to

lmpiove flow and is essential

to Produce energY from

geothermal "hot rock"systems. rock containing the

gas'

The well design and program isreviewed'

approved and monitored by theState or

Territory regulator' ttri{i ' ;i-''jiiir'.:-. a' ,'t..'tt"--,...::i

r..#F- .::1

- rl

Sensors

Leain more, www'aPPea'com'a:


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.

' aa)'a.ar :^e cF=':::' ,'. a -*: a '* o - Irp 63iry 99,5::\,,'ater and sand, anc 0.5:: Cie r c3 addltlves (see page 10)- down the well at a high pressure, This creates a network oftiny cracks in the rock. The sand helps to hold the cracks open,allowing trapped natural gas to flow to the well.

Tried & TestedHydraulic fracturing has been

used in Western Australiasince the 1950s. More than780 petroleum wells have

been fractured in WA with no

known adverse effects on theenviron ment, water sourcesor public health.

ffiui8c$&rxg Natural Gas

J

and it can safely produce

natural gas, an exterdeotesting program may takeplace. These tests Providethe operator with irrpo'ta-:information about theresou rce.

PXpeE&meslf the testing perioo s ,-:ce;s'-1, apipeline will be insta rec '':- :henew well to an existtng ie:',,''o'


8/12

An lntroduction to Natural Gas from Shale andTight Rocks

WaterManagementThe amount of water

used for shale or tight gas

operations is a small fraction

oi the water used forqgricultu,re,, industry

or recreation.


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Air QualityRe c"cing emissions from naturagas operations is a high priority forthe industry. Wells are designed,constructed and operated to minimiseemissions.

Several scientific studies agree thatgreenhouse gas emissions from shalegas-powered electricity - including thelife-cycle emissions - are significantlylower than those from coal-firedpowerl. All natural gas productionfacilities in Australia, including wellsand pipelines, are tightly controlledand monitored to minimise the risks oflea kage.

Multi-wellpad6 x well heads

Researchn=)so L ,1j.,6 --= a' ='C

emissions from cca s:a- gasproduction is being undertaken

by the CSIRO and the FederalGovernment. More information

can be found on the CSIROwebsite.

B-& m$tee* $r* rfaeq* & rm gxaet

Onshore tight and shale gasdevelopments are designed tominimise impact on the ground surfaceand land use.

Horizontal drilling has helped reducethe footprint for shale and tight gasdevelopments by allowing multiplewells to be drilled and operated froma single drilling pad, significantlyreducing the surface footprint,Using this approach, producers can

deve op a field with one drill every 1-4kllometres. Most of these driil padscan then be connected to a centralprocessing facility by undergrou ndp i pes.

Setting High Standardslndustry operators set and meethigh standards, and strongly supportgovernment regulations that alsoexpect high standards for shale andtight gas development. These highstandards are expressed in the 'GoldenRules for the Golden Age of Gas'published by the lnternational EnergyAgency.

APPEA has developed or contributedto several codes of practice. Thesecodes provide best-practice guidelines,reflect industry priorlties for workingwith communities and are intendedto improve the transparency of all theessential elements of the assessmentand monitoring of industry activity.

Cleaner EnergyThe US Environment Protection

Authority states that: "Compared tothe average air emissions from coal-

fired generation, natural gas produceshalf as much carbon dioxide, less thana third as much nitrogen oxides, andone percent as much sulfur oxides

at the power plant."2

@ abJ*&a

SmallFootprint

A multiple we I cac,averaging between 4-8 r^rell

heads, would cove' ess t^anthe size of a standard rouse

block aft-"r anorehabilitatior.

- a'*

Desc l



10/12

An lntroduction to Natural Gas from Shaleand Tight Rocks

Understonding Frocturing FluidThe fluid from thg hylllYlic fracturing

a pro."'Jillltrv g'g'-sx w't"r and sand

RESPONSIBLE DEVELOPMENTso und enironm ei rot m on ogem en /

Access to inforr"nationThe industry is committed to open and

transparent disclosure of the chemical

additives used in exPloration or

production.

Planning for each well involves

preParing an environmental Plan

management plan with details of any

chemicals used in hydraulic fracturing

and management strategies in place toprotect the environment throughout

the full lifecycle of a project' The

industry supports disclosure andmany

comPanies make this information

available on their websites'

Chemicals management

The fluid used in hYdraulic

fracturing is mostlY made

up of waterand sand

(apProximatelY 99'5 Per

cent). The remainder is

a mixture of chemical

additives used to thicken

the fluld to helP carrY the

sand or beads (known as

"proPPants") which hold

open the tinY hair-like

fissures allowing the gas

to flow more easilY into

the well. The chemicalsreduce f riction, remove

bacteria and Prevent scale

from building uP in the well'

Most of the chemicaladditives used are found in

familiar household Products'

ChemicalConffols

The chemical additives inthe hYdraulic fracturing fluids

are subject to the same

strict regulations applying to

resPonsible chemical use

on farms or in

TransParencYComPanies must submit

detailed Plans for aPProvalby the State or Territory

government ahead of anY

hYdraulic fracturingactivitY.

Some typical additives used in fracturi

fluid and common household items

Guar Gum fi'0'L5%

Concentration ln ice-cream

fi+fwfr4flslfilrNqrfslAllssffra$qFirFrFqj-:=-:''

Acetic Acid 0-O'1%Concentration in

f

,, I

Sodiurr Chloride 0-0'0S1Concentration intable salt 99%

fls$lswqssstrygfe??==::4{FPErtsaT:r

pH Stabilizer {MEAEoe-*.1% Concentrati0nc0smtics 0.5%

Dlsinfectant {SodiumHypochlorite)


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RESPONSI BLECo m m un ily p orln ersh ipsWorking TogetherThe oil and gas industry recognisesthat success depends on long-termrelationships built on integrity,transparency, fairness and respect.

The partnerships between communitiesand the industry have achievedimportant benefits, including:

. economic growth;

. local employment (including jobs forfarmers and Traditional Owners);

. regional and indigenous businessdevelopment;

. training;

. community developmenU and

. infrastructure.Through co-operative com m u n ityrelationships and informed discussion,the industry and the government areensuring the right approach is beirgtaken to unlock the industry's potenraland provide significant benefits toregional areas.

A partnership approach

lndustry, government and CSIRO ravejointly hosted community informarorworkshops in Western Australia a'rdNorthern Territory. This i m porca nlcollaboration aims to work withlocal communities - listening to ardaddressing their concerns - ani idernfysources of information they can :rust,

ln South Australia the industry has beenworking closely with all stakehoicers,in particular the South Australian

Government, through the Roundtablefor Unconventional Gas.

ScienceThe lnternationalGas Union (lGU)has provided a good compilation

of peer-reviewed science and bestpractices in relation to common

environmental concerns. You canread more in the shale gas booklet

available for download at

http ://www.i gu. o

rglga s-knowhow/publ ications/igu-pu bl ications/

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APPEA's Natural Gas Repulsions