Shale Gas Study
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Foreign and Commonwealth Office Shale Gas Study Final Report April 2015 Amec Foster Wheeler Environment & Infrastructure UK Limited 2 © Amec Foster Wheeler Environment & Infrastructure UK Limited Report for Copyright and non-disclosure notice Tatiana Coutinho, Project Officer The contents and layout of this report are subject to copyright Setor de Embaixadas Sul owned by Amec Foster Wheeler (© Amec Foster Wheeler Foreign and Commonwealth Office Environment & Infrastructure UK Limited 2015). save to the Bririah Embassy extent that copyright has been legally assigned by us to Quadra 801, Conjunto K another party or is used by Amec Foster Wheeler under Brasilia, DF licence. To the extent that we own the copyright in this report, Brazil it may not be copied or used without our prior written agreement for any purpose other than the purpose indicated in this report. The methodology (if any) contained in this report is provided to you in confidence and must not be disclosed or Main contributors copied to third parties without the prior written agreement of Amec Foster Wheeler. Disclosure of that information may Pete Davis constitute an actionable breach of confidence or may Alex Melling otherwise prejudice our commercial interests. Any third party Daren Luscombe who obtains access to this report by any means will, in any Katherine Mason event, be subject to the Third Party Disclaimer set out below. Rob Deanwood Silvio Jablonski, ANP Third-party disclaimer Issued by Any disclosure of this report to a third party is subject to this disclaimer. The report was prepared by Amec Foster Wheeler at the instruction of, and for use by, our client named on the front of the report. It does not in any way constitute advice to ................................................................................. any third party who is able to access it by any means. 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Kenilworth Road Leamington Spa Warwickshire CV32 6JX United Kingdom Document revisions Tel +44 (0) 1926 439 000 No. Details Date Doc Ref. 35779rr 1 Draft Report 21.11.2014 h:\projects\35779 shale gas study\1 client\reports\report\final\shale gas study _final.docx 2 Revised Report 16.03.2015 3 Final 29.04.2015 April 2015 Doc Ref. 35779rr 3 © Amec Foster Wheeler Environment & Infrastructure UK Limited Executive summary Purpose The exploration and production of shale gas represents a significant opportunity for many countries. It could help address energy security, energy costs and the need for transitional energy sources in moving towards a low carbon future. Brazil, as one of 10 countries that have collectively been estimated to contain nearly 80% of the world’s estimated technically recoverable shale gas resources1, is actively considering the potential for shale gas. However, in common with many other nations2 considering the potential for unconventional oil and gas, the proposed development of shale gas in Brazil has also raised concerns regarding the potential effects on the environment3. At present, Brazil does not have specific procedures or recommendations from the environmental agencies concerning shale gas or oil exploration and development although there is a resolution from ANP, the oil and gas licensing agency, for the management of risks to human health and the environment. Following an initiative of the Ministries of Mines and Energy and the Environment, a project has been established to analyse the key issues concerning the development and production of unconventional oil and gas resources under a federal Program known as PROMINP (Mobilization Program of Industry in the Oil and Natural Gas). As a contribution to research under PROMINP and in order to support the Brazilian government develop a strong regulation for the safe exploration of shale gas by drawing on international research, Amec Foster Wheeler Environment and Infrastructure UK Ltd has completed a review of the risks to the environment and human health of shale gas exploration and production and the approaches to managing these risks through regulatory frameworks in the UK and Europe. Environmental Risks The key risks identified through this work are summarised in the following table. It indicates that the majority of risks and impacts associated with unconventional oil and gas exploration and development are common to those associated with conventional oil and gas development. Differences however do occur when considering the technologies and requirements of the hydraulic fracturing process itself. These are likely to include: induced seismic events; the local sourcing of water, creating additional demand during periods of water stress; the management of chemicals and the mixing, storage and use of the fracture fluid, the management of flowback water and fugitive greenhouse gas emissions. Theme Risk/Impact Conventional Un- conventional Biodiversity Direct loss and/or fragmentation of habitat from construction and operation of well site and well pad activities. Indirect impacts on habitats/species due to, for example, disturbance from noise, human presence and light pollution and the introduction of invasive species and the exposure to pollution through causal pathways. Land Use and Land requirements for pad and pipelines, disruption to soil layers and Geology compaction and resulting impacts on removal of land for alternative uses (natural or anthropogenic) and ecology/ environment impacts. 1 US Energy Information Administration, Technically Recoverable Shale Oil and Shale Gas Resources: An Assessment of 137 Shale Formations in 41 Countries Outside the United States, 2013 2 BIO Intelligence Service (2013), Presentation of the results of the public consultation “Unconventional fossil fuels (e.g. shale gas) in Europe” Brussels – 7th June 2013, for the European Commission and DG Environment, http://ec.europa.eu/environment/integration/energy/pdf/Presentation_07062013.pdf 3 Brazilian Academy of Sciences Letter to President Rouseff, 5th August 2013, http://jonathandealblog.com/2013/08/29/fracking-not- welcomed-with-open-arms-in-brazil/ April 2015 Doc Ref. 35779rr 4 © Amec Foster Wheeler Environment & Infrastructure UK Limited Theme Risk/Impact Conventional Un- conventional Induced seismicity from hydraulic fracturing activities and the potential (in limited impact on well integrity, creation of geological pathways for pollutants and circumstance4) possible minor earth tremors. Water Resources Surface spillage of pollutants such as diesel and drilling fluids and silt-laden run-off resulting in surface water pollution. Surface spillage of hydraulic fracturing fluids and wastewaters resulting in surface water pollution. Well failure resulting in pollutants released from the well to groundwaters. Introduction of pollutants due to induced fractures providing pathways to groundwater resources through either pre-existing man-made or natural structures. Inappropriate selection of chemicals in hydraulic fracturing and/ or unsuitable assessment leading to unacceptable risks to the environment from releases. Water consumption associated with hydraulic fracturing activities affecting the availability of water resources, aquatic habitats and ecosystems and water quality. Well pad development at risk of flooding and/or resulting in increased flood risk off site due to increase in impermeable area and/or location of facilities in areas of flood risk. Air Quality Emissions to air from well pad construction and drilling resulting in adverse local air quality impacts. Emissions associated with hydraulic fracturing activities resulting in adverse local air quality impacts. Climate Change Greenhouse gas (GHG) emissions from well pad construction and drilling. GHG emissions associated with hydraulic fracturing activities. GHG emissions arising from well completion. Fugitive GHG emissions. Combustion of extracted hydrocarbons generating GHG emissions. Waste Arisings Generation of construction and drilling wastes. Generation of flowback water following hydraulic fracturing activities. Cultural Heritage Direct loss of or damage to cultural heritage features and landscapes from construction of well pad and associated infrastructure. Indirect effects on the setting of cultural heritage assets as a result of the well pad construction and operation. Landscape Impacts and landscape character and visual amenity due to well pad construction and operation activities. Human Health Emissions to air, dust and noise associated with construction and drilling activities resulting in adverse impacts on nearby receptors. 4 Davies et al (2012) Induced Seismicity and Hydraulic Fracturing for the Recovery of Hydrocarbons, Marine and Petroleum Geology Manuscript, https://www.dur.ac.uk/resources/refine/InducedSeismicityfull.pdf April 2015 Doc Ref. 35779rr 5 © Amec