Energy Forum Armidale: Natural gas from coal Rick Wilkinson 17 Aug 2012 Australia: abundant gas reserves CSG is the fastest growing source of energy in Eastern Australia New South Wales CSG 2,872 PJ Conventional Gas 7,375PJ Australian CSG Production 1996 to 2011 250 200 Queensland CSG 39,453 PJ PJ pa 150 100 50 0 1996 1998 2000 2002 2004 2006 2008 2010 Qld East Australia 2P reserves = 49,655 PJ Source: EnergyQuest, February 2012 NSW Global Perspective: Gas reserves and prices Unconventional gas has had a major impact on the US gas industry 3 Key 2011 CSG statistics by state NSW Queensland Number of CSG wells 249 3,261 Water produced in 2011 (GL) 0.2 15.8 Water monitoring bores 60 626 Signed land access agreements 112 2,459 Formal disputes of access agreements 0 0 Employees (Direct and Contracted) 249 11,864 Community engagement events 177 366 Community contributions $305,000 $52,781,000 Source: APPEA member companies 4 More than just finding resources… Communities Government • • • • Economic growth Risk management Regulation Mandate and re-election Shareholders • • • • Value capture Risk management Capital allocation Superannuation CSG Industry • Change management • Prosperity and sustainability • Improved infrastructure Landholders • Overlapping interests • Water security • Value capture Activists • Stop fossil fuels • Occupy Wall Street • Increase funding CSG and the land CSG Then Lauren field in the Surat Basin was developed the way it was, during the drought years, in a manner that fitted both the landholder and the CSG company at the time. CSG Now The Berwyndale field in the Surat Basin has been developed more recently, and demonstrates how CSG proponents work closely with landholders to optimise the layout of infrastructure to minimise the impact on their farm productivity. Core hole site and rehabilitation Well site at Brawboy, Gunnedah Basin, NSW A Case Study: Wells and Agriculture Area (‘000 sq Km) Gross Farm Product* Petroleum Wells ($Bn) Qld NSW Texas 1,731 802 696 9.1 8.3 9.7 7,000 249 218,556 *Source: ABS 1367.0 State and Terr Stat Indicators for 2009/10; 2009 Texas Agriculture Statistics, USDA Water Utilisation: The Great Artesian Basin GAB Total Storage: 64,900,000 GL Water Volume (Gigalitres pa) 881 616 91 2011 Actual = 16 GL Source: GAB Coordinating Committee (2010) http://www.gabcc.org.au ; CSG industry 30 yr ave Beneficial use of produced water