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Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production...

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Shale Gas Subcommittee Secretary of Energy Advisory Board
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Page 1: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

Shale Gas Subcommittee Secretary of Energy Advisory Board

Page 2: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

US Shale Gas Plays

Source: U.S. EIA based on data from various published studies; Update: May 9, 2011

Page 3: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

Source: EIA AEO 2012 early release, adapted by Essential Public Radio - http://www.essentialpublicradio.org/story/2012-01-24/marcellus-shale-gas-potential-much-lower-previously-thought-9967

Page 4: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

Key Benefits

• Domestic Energy Security

• Geopolitical and National Security

• Jobs and the Economy

• Environmental… if it’s done right

Page 5: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

Key Environmental Risks • Well Integrity • Surface Operations • Water Use • Waste Management • Local & Regional Air Quality • Climate Impacts • Cumulative & Community Impacts

Page 6: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

Setting the Bar for Safety and Responsibility. The subcommittee will work to identify, within 90 days, any immediate steps that can be taken to improve the safety and environmental performance of fracking and to develop, within six months, consensus recommended advice to the agencies on practices for shale gas extraction to ensure the protection of public health and the environment. Obama Administration Blueprint for a Secure Energy Future March 30, 2011

Page 7: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

John Deutch Institute Professor at MIT (Chair)

Stephen Holditch Dept. of Petroleum Engineering, Texas A&M

Fred Krupp President, Environmental Defense Fund

Kathleen McGinty Former Secretary, Pennsylvania DEP

Susan Tierney Managing Principal, Analysis Group

Daniel Yergin Chairman, IHS Cambridge Energy Research Associates

Mark Zoback Professor of Geophysics, Stanford University

Subcommittee Members

Page 8: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

Process 6 Public Meetings Public Field Hearing in PA Well-Site Visit in PA Testimony:

• Federal Regulators • State Regulators • Research Institutes • Natural Gas Producers • Trade Associations • Environmental Groups • Concerned Citizens

Page 9: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

Key Themes Transparency “The common thread in all these recommendations is that measurement and disclosure are fundamental elements of good practice and policy for all parties. Data enables companies to identify changes that improve efficiency and environmental performance and to benchmark against the performance of different companies. Disclosure of data permits regulators to identify cost effective regulatory measures that better protect the environment and public safety, and disclosure gives the public a way to measure progress on reducing risks.”

Page 10: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

Key Themes Regulation and Enforcement “…the Subcommittee emphasizes that effective and capable regulation is essential to protect the public interest. The challenges of protecting human health and the environment in light of the anticipated rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources dedicated to oversight of the industry must be sufficient to do the job and there is adequate regulatory staff at the state and federal level with the technical expertise to issue, inspect and enforce regulations.”

Page 11: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

Key Themes Continuous Improvement of Best Practices “Strong regulations and robust enforcement resources and practices are a prerequisite to protecting health, safety and the environment, but the job is easier where companies are motivated and committed to adopting best engineering and environmental practice. …Achievement of best practice requires management commitment, adoption and dissemination of standards that are widely disseminated and periodically updated on the basis of field experience and measurements.”

Page 12: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

Recommendations: Data, Transparency and Communication • National Database • Fracturing Fluid Chemical Disclosure • Baseline Water Quality Testing • Lifecycle Water Management and Reporting • Waste Characterization, Tracking and Reporting • Underground Methane Migration Study • Measurement and Disclosure of Air Emissions • Methane Air Emissions Study • Full Fuel-Cycle GHG Study • Funding for STRONGER and GWPC

Page 13: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

Recommendations: Air Quality

• Rigorous standards for both new and existing sources for methane, air toxics, ozone-forming pollutants and other air contaminants resulting from gas exploration, production, transportation and distribution.

• Methane leakage and uncontrolled venting of methane

and other air contaminants should be eliminated except in cases where technically infeasible, where necessary for safety or where there is no alternative.

Page 14: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

Recommendations: Water Supply and Water Quality

• Integrated water management systems utilizing lifecycle approach to managing, tracking and reporting water use. And cradle-to-grave measurement, characterization and tracking of waste.

• Modernization of rules and enforcement practices to

ensure protection of groundwater and surface water, especially regarding: 1) well construction and operation, 2) management of flowback and produced water, 3) prevention of blowouts and spills.

Page 15: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

Recommendations: Cumulative Impacts on Communities, Land, Wildlife and Ecosystems

• Community notification, engagement and planning for mitigation of community impacts such as truck traffic, noise, lights, infrastructure development, etc.

• Science-based characterization and monitoring at landscape and watershed level to inform planning and protect habitats, species and ecosystems.

• Declare unique and/or sensitive areas off-limits.

Page 16: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

Recommendations: Continuous Improvement of Best Practices

• Industry organization, with multi-stakeholder participation, dedicated to continuous improvement of best practice through development of standards, diffusion of these standards, and assessing compliance among its members.

Page 17: Shale Gas Subcommittee - American Chemical Society€¦ · rapid expansion of shale gas production require the joint efforts of federal and state regulators. This means that resources

Thank You

Matt Watson Senior Energy Policy Manager Environmental Defense Fund [email protected]


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