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Shale Gas Exploration and Hydraulic Fracturing
South Cleveland Basin AreaSeptember 2016
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• Who we are• What is Unconventional or Shale Gas• UK Shale Gas Areas• Operations• Economics
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Cuadrilla – who we are
• Formed in 2007, UK company
• Early entrant to shale gas in Europe
• Backed by industry-specialist funds
UK Exploration assets• Bowland basin ≈ 293,000 acres • Weald basin ≈ 192,500 acres
UK 14th Round offers• Cleveland basin and
Gainsborough Trough ≈ 314,800 acres
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• What is Unconventional or Shale Gas?
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Why is Hydraulic Fracturing Needed?
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Gas emanating from visible fractures
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• UK Shale Gas Areas
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DECC/BGS Shale Gas Study
Central Case Estimates• Bowland Basin
– 1,329 tcf gas• Midland Valley
– 80.3 tcf gas– 6.0 billion bbl oil
• Weald Basin– 4.4 billion bbl oil
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Bowland License Areashttp://www.ukogl.org.uk/
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South Cleveland Basin
SE75 SE85
SE74 SE84
SE95 TA05 TA15
http://www.ukogl.org.uk/
Operator Block(s)Firm
commitment Drill or Drop
CUADRILLA SE74 & SE84 new 2D 1 well
CUADRILLA SE75 new 2D 1 well
CUADRILLA SE85 & SE95 new 2D 1 well
CUADRILLA TA05 &TA15 new 2D 1 well
EUROPA SE72 & SE73 new 2D 1 well
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• Operations
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Seismic
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Historic Seismic Coverage
http://www.ukogl.org.uk/
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2D Seismic
SPE 14UNCV-167776-MS, Clarke et al
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Historic Drilling
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Drilling
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Well Design
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Hydraulic Fracturing
• Injects fluid into rock at a high enough pressure to cause the rock to fracture.• Fluids can be water based, hydrocarbon based, acids, liquid CO2,
gaseous N2, foams and various combinations.• Fluids must be approved by the EA and be non-hazardous to
groundwater.• The fractures are held open with proppant after the hydraulic pressure is
released.• Typically silica sand.• At greater depths or pressures, ceramic proppants can be used.• Common sizes are 20/40 mesh (0.853mm-0.422mm) and 40/70 mesh
(0.422mm-0.211mm)
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This is not a frac rig!
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Frac Kit
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Frac Boats in the North Sea
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Multi-well pad
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After drilling and fracturing the equipment is removed
(Artist’s impression, production pad 2013)
Elswick facility
For the next 25 years the site looks like this
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The UK regulatory process is thoroughStatutory bodies• Department for Business, Energy &
Industrial Strategy/Oil and Gas Authority (OGA),
• The Environment Agency (EA)• The Health and Safety Executive
(HSE)• The EA and HSE continually monitor
operations – March - August 2011: EA visited the
Preese Hall site 10 times (7 unannounced visits)
• Mineral planning authorities approve all surface operations
Environmental permits issued by the EA comply with:• EU Mining Waste Directive• EU Industrial Emissions Directive• EU Groundwater Directive• EU Water Framework Directive• Other relevant legislation
Other consultees• Natural England• National Grid• Public Health England• Parish Councils• Water Utilities
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This EASAC analysis provides no basis for a ban on shale gas exploration or extraction using hydraulic fracturing on scientific and technical grounds…
North Atlantic Group of the European Geological Surveys "The Survey Directors are concerned that frequent misleading media messages regarding exploration and exploitation of raw materials and geo-energy have the potential to obscure scientific results and conclusions, and may ultimately lead to poor decisions for Society."
"Often dangers are evoked where there are none. When fracking for production of natural gas there are widespread fears in the population, most of which are unfounded from geoscientific perspective."
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.
The currently available evidence indicates that the potential risks to public health from exposure to the emissions associated with shale gas extraction are low if the operations are properly run and regulated.
European studies
The areas of health, wellbeing and safety surrounding an onshore industry do not appear to present significant risks, although a degree of uncertainty is present.
The technology exists to allow the safe extraction of such reserves, subject to robust regulation being in place.
The Scottish Government, Edinburgh 2014A total ban on hydraulic fracturing can not be justified on the basis of scientific and technical facts.
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• Economics
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DECC DUKES2015 Annex H
UK natural gas use
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Future gas use scenarios
(Source: National Grid Future Energy Scenarios 2016)
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What a successful shale gas industry has to offer
• Meaningful unsubsidised private investment
• Meaningful job creation
• Meaningful energy security contribution
• 10% of tax revenues from shale gas developments, up to a maximum of £10m per site to be spent on local areas
• Community benefit for local people
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Thank you