UK Shale gas: How much gas? How safe to extract? Prof Mike Stephenson British Geological Survey © NERC All rights reserved Two main questions • How much gas is there? o Is it worth investing? o Is it worth thinking about risks and regulation if gas extraction never happens? • How safe is it to extract? o What are the main risks? o What science can be done to understand risks © NERC All rights reserved How much gas is there? Reserve and resource • • • Resource figure -amount of gas in the ground (some of which might never be accessible) Reserve figure -more sophisticated measure amount of gas that you might be able extract given economics and other factors. Recovery factor - proportion of the total gas resource that can be extracted and is often expressed as a percentage © NERC All rights reserved How much gas is there? Variation in estimates and recovery factors • • • • • • BGS approximate reserve estimates for DECC in 2010 5.3 tcf (150 BCM) Advanced Resources (2011) which listed 97 tcf GIP and 20 tcf recoverable resources for the UK Cuadrilla’s Lancashire licence their 1200 square kilometres licence area 200 tcf GIP IGas acreage first estimate GIIP 800mmboe, then changed to c.1,600mmboe (millions barrels of oil equivalent - 9.23 tcf) Eden Energy 7 licences in South Wales GIIP) – 34.198 tcf ; Recoverable Volume – 12.799 tcf of gas’. Dart Energy Original Gas in Place (OGIP) of 65.56 tcf © NERC All rights reserved How safe to extract? © NERC All rights reserved Main hazards/concerns • • • • • • • • Earthquakes Integrity of well casing and groundwater contamination Radioactivity Transportation of equipment, materials and wastes to and from the site; Emissions to air Noise Large volumes of water for fracking Surface spillages of chemicals and waste waters © NERC All rights reserved • • • Largest on 1 April magnitude 2.3 felt >50 people © NERC All rights reserved Comparison of signals • • Comparison of signals from the 1 April and 27 May Waveforms very similar, so similar origin BGS concluded that the earthquakes were a direct consequence of the fluid injection during fracking © NERC All rights reserved Management of future tremors • • Cuadrilla commissioned reports on the tremors DECC commissioned an expert group to look at the reports and make recommendations • • • • © NERC All rights reserved Small pre-injection and monitoring before the main injection. Growth direction should be monitored and monitoring system for automatic locations and magnitudes of any seismic events in near real-time. Operations should be stopped and remedial action instituted, if events of magnitude 0.5 ML or above are detected. UK Govt yet to make a decision and recommendations Groundwater and rock stress baseline studies • • © NERC All rights reserved How background methane is there in groundwater? Which rocks are stressed already so should be avoided for fracking Commons Select Committee Call for evidence on the ‘Impact of Shale Gas on Energy Markets’ • • • • • • • • What are the estimates for the amount of shale gas in place in the UK, Europe, and the rest of the world, and what proportion is recoverable? Why are the estimates for shale gas so changeable? What are the prospects for offshore shale gas in the UK Continental Shelf? Should the UK consider setting up a wealth fund with the tax revenue from shale gas? What have been the effects of shale gas on the LNG industry? Could shale gas lead to the emergence of a single, global gas market? What are the effects on investment in lower-carbon energy technologies? What is the potential impact on climate change objectives of greater use of shale gas? © NERC All rights reserved Conclusions • • • • • • Resources and reserves estimates in Britain and Europe vary widely This is affecting investor confidence; also policy makers aren't sure what to do…. Main British environmental concern has been earthquakes. Studies recommend ‘traffic light’ system to manage tremors BGS has initiated groundwater and rock stress baseline studies Commons Select Committee Call 14th Licensing Round © NERC All rights reserved Extra slides for discussion? © NERC All rights reserved What is shale gas? Shale basics • • • • Grey or black, soft Fine grained 70% of the world’s surface rocks are sedimentary; 50% of those are shale. Contain ~95 % of the organic matter in sedimentary rocks 1 mm © NERC All rights reserved What is shale gas? Where does the organic material come from? Land plant material and seawater algae collect in mud Older, deeper shale layer © NERC All rights reserved What is shale gas? Burial over millions of years • Shale buried • Biological decay – biogenic methane • Organic matter ‘cooked’ – thermogenic methane 500 m 0m © NERC All rights reserved Old deep shale layer Conventional and unconventional Conventional and unconventional © NERC All rights reserved Conventional and unconventional sandstone Sand grain gas gas Sand grain 0.25mm © NERC All rights reserved shale Conventional and unconventional Adsorbed gas and gas in pores • • • • Phytoclast Pyrite © NERC All rights reserved Pore space gas Adsorbed gas calculation of gas in place per unit volume We have to measure how much shale Conventional and unconventional Conventional: Trap © NERC All rights reserved Unconventional: Continuous accumulation Conventional and unconventional Fracking basics • • Cracks the shale High pressure water or nitrogen, 350-700 bar (350 to 700 atmospheres) © NERC All rights reserved Contamination from fracking? Osborn et al. 2011, PNAS • Studied: • • Methane in shallow water wells in shale gas areas measured methane content and δ13C © NERC All rights reserved Molofsky et al. 2011 Not peer reviewed Dec 2011 © NERC All rights reserved © NERC All rights reserved Molofsky et al. 2011 Blackpool seismicity The Blackpool region - low seismicity even for the UK. 2.5 in 1970 5 km south-west of Blackpool. number of smaller earthquake immediately offshore. The magnitude 3.7 Ulverston earthquake 28 April 2009 © NERC All rights reserved How much gas is there? Complex terminology Terms for resources and reserves Term Acronym Summary Resource ‘How much gas is in the ground’ Original gas in place OGIP Total volume of gas Gas (initially) in place GIIP/GIP Total volume of gas Reserve ‘How much gas could be extracted’ Ultimately recoverable Total recoverable volume Technically recoverable Limited by technology Limited by economics Economically recoverable Reserves Proved reserves Total producible gas 1P Median figure of 2P reserves High figure of reserves 3P © NERC All rights reserved Probability of reserves (proven) Proven and probable Proved, probable and possible Damage very unlikely to have been caused by earthquake © NERC All rights reserved