Responsible Energy Development: CAPP's Operating Practices for Hydraulic Fracturing
-
Upload
canadian-association-of-petroleum-producers-capp -
Category
Business
-
view
4.850 -
download
0
Transcript of Responsible Energy Development: CAPP's Operating Practices for Hydraulic Fracturing
Responsible Energy Development
CAPP’s Operating Practices for Hydraulic Fracturing
Oil & Gas Water Management Strategies Conference Calgary, Alberta
January 30, 2012 David Collyer
Advancing the 3Es
• Generating Economic Benefits
Jobs and revenues across North America
• Providing Energy Security
Safe, secure and reliable energy
Large energy resource potential
• Providing Environmental Stewardship
Strong regulations
Technology advances
•Competitiveness
•Social Licence
•Performance + Communication = Social Licence
Key Drivers
Responsible Canadian Energy Program
• Canadian Responsible Energy represents a collective commitment by CAPP’s members to:
Measure our performance
Find new and innovative approaches to reduce our environmental footprint
Ensure every worker returns home safely every day
Continue to improve the ways in which we communicate and engage the public and other stakeholders
• Western Canada (excluding oil sands)
• Oil sands
• Atlantic Offshore
• Highlighted shale gas development as an emerging issue, including concerns related to water and hydraulic fracturing
•2010 RCE Progress Report
Responsible Canadian Energy – Water Objectives
Through the RCE program, Canada’s oil and gas industry works to:
• Reduce the amount of fresh water required per barrel equivalent of production.
• Safeguard the quality of regional surface and groundwater resources.
Key Performance Areas
Key Performance Areas
Oil Sands Water Performance
Mining
3.1 barrels of fresh water per barrel of oil, with 80-90% recycled (2010 data)
Currently use 0.5 per cent of the annual flow of the Athabasca river
• In situ (drillable)
0.4 barrels of fresh water per barrel of oil, with 90-95% recycled (2010 data)
No water from Athabasca River
Shift to using non-potable (saline) sub-surface aquifers
Technology Solutions – Greater Recovery and Less Water
• Additives to reduce the need for both water and energy (steam)
LASER (Imperial), SAP (Cenovus), N-Solv
SC-SAGD (Laricina), SOLVE (Statoil/PTRC)
• Non-aqueous extraction
ET-Energy, Shell, Petrobank
• Saline water instead of fresh water
Devon Energy Jackfish Project
• Collaboration on tailings research
Oil Sands Tailings Consortium (OSTC)
Devon’s Jackfish Project
Suncor TRO Tailings Management Process
Key Performance Areas
The Global Context
• IEA expects global demand for energy to increase 47 per cent by 2035
• Global demand for natural gas is expected to increase 55 per cent by 2035
• IEA called next two decades a “golden age” for
natural gas
N.A. Natural Gas Supply Outlook
• Shale gas supply a game-changer
• Technology breakthroughs
• New producing regions
• Emerging stakeholder environmental concerns (footprint, water)
• Shifting S/D dynamic
How does hydraulic fracturing work?
• One-time use of water to hydraulically fracture a well
• Typical well produces 20 to 30 years
• Reservoirs typically 2,000 to 3,000 m below ground
• Freshwater aquifers usually at depths less than 300 m
• Fractures extend about 50 to 100 m
Concerns About Shale Gas
Does this make you feel more concerned about natural gas?
28%
51%
55%
47%
33%
34%
0% 20% 40% 60% 80% 100%
Natural gas is a fossil fuel
- doesn't seem as clean as
renewable sources of
energy
New sources of natural
gas, such as shale, require
a lot of water to get the
gas out of the ground
Some reported cases of
water wells being
contaminated near natural
gas developments
A lot more concerned Somewhat more concerned
Harris/Decima
Guiding Principles for Hydraulic Fracturing
1
2
3
4
5
We will safeguard the quality and quantity of regional surface and groundwater resources, through sound wellbore construction practices, sourcing fresh water alternatives where appropriate, and recycling water for reuse as much as practical.
We will measure and disclose our water use with the goal of continuing to reduce our effect on the environment.
We will support the development of fracturing fluid additives with the least environmental risks.
We will support the disclosure of fracturing fluid additives
We will continue to advance, collaborate on and communicate technologies and best practices that reduce the potential environmntal risks of hydraulic fracturing.
Operating Practices for Hydraulic Fracturing
Practices put Principles into Action
Fracturing Fluid Additive Disclosure
Publicly disclose all information on fracturing fluid additives
1
Practices Put Principles into Action
Fracturing Fluid Additive Risk Assessment & Management
Create demand for more environmentally sound fracturing fluids
Assess potential risks and mitigate these risks
Make processes for developing well- specific risk manage- ment plans publicly available
2
Practices Put Principles into Action
Baseline Groundwater Testing
Baseline groundwater testing prior to development and monitor over time
Sourcing freshwater alternatives and recycling
Share data collected as legally permitted
3
Practices put Principles into Action
Wellbore Construction and Quality Assurance
Ensure wellbore integrity
Make wellbore construction and assurance practices publicly available
4
Surface Casing(Conductor)
Cement
Production Casing
Base of Ground Water Protection
Not to
Scale
Graphic from Shell Canada
Practices Put Principles into Action
Water Sourcing, Measurement and Reuse
Reduce overall use of freshwater
Measure water quantity
Monitor water sourcing
Make water sourcing, measurement and reuse practices publicly available
5
Practices Put Principles into Action
Fluid Transport, Handling, Storage and Disposal
Mitigate potential risks of accidental spills
Ensure quick response to accidental spills
Make fluid transport, handling, storage and disposal practices publicly available
6
Summary
•Huge opportunity for Canada
•Need to be competitive
•Social Licence to Operate
•Principles and Practices:
Guide development
Inform and complement regulations
Consistently deliver responsible operations across Canada
Continue to develop the resource safely