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Shale Gas and Hydraulic Fracturing: Framing the Water Issue

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Shale Gas and Hydraulic Fracturing: Framing the Water Issue Shale Gas and Hydraulic Fracturing Framing the Water Issue REPORT 34 Copyright © 2014, Stockholm International Water Institute, SIWI ISBN: 978-91-981860-1-7 ISSN: 1404-2134 How to Cite: Hoffman, A., Olsson, G., Lindström, A. 2014. Shale Gas and Hydraulic Fracturing: Framing the Water Issue. Report Nr. 34. SIWI, Stockholm. Cover photo: iStock Language Editing: Alex Kirby Production: Victoria Engstrand-Neacsu, SIWI Design: Elin Ingblom, SIWI Disclaimer: The views expressed in this report do not necessarily represent SIWI policy but are those of the individual authors. Printing by Ineko, Stockholm, Sweden. The printing process has been certified according to the Nordic Swan label for environmental quality. For electronic versions of this and other SIWI publications, visit www.siwi.org. Shale Gas and Hydraulic Fracturing Framing the Water Issue Table of Contents Executive Summary 5 Introduction 6 Note to the Reader 8 Shale Gas – A Natural “Tight Gas” 9 Drivers for Growth 10 The Evolving Global Energy Landscape and the Emergence of Shale Gas 11 Hydraulic Fracturing 16 Water and the Fracking Process 17 Different Aspects of Water-Related Risks from Fracking 18 Other Threats Linked to Shale Gas and Fracking 22 Case Descriptions 25 Recommendations 29 References 31 4 Executive Summary The emergence of shale gas and shale oil has quickly ity, and as the reserves are often found in dry areas changed the landscape of opportunities for energy extraction poses additional challenges in what are provision and security in different regions of the often already water-stressed environments. The vast world. Difficulties in assessing the actual quantity of water quantities needed over the life span of a shale existing global shale hydrocarbon reserves produce gas well, where water is used to fracture rock under opposing views on whether the world is on the verge high pressure, pile further stress on local fresh water of a “shale gas revolution” and, if it is, how long it sources which are already needed for many different could last. Some argue that shale gas may constitute purposes. At times when water supplies are running a backbone of energy supply for specific countries short in a specific area it has to be transported to the for decades to come, while others say the peak may fracking site from afar. have passed already. Water quality is also under threat from fracking Despite this, some nations – such as the USA – as well as the quantity available. Many chemicals have already started an ambitious exploitation of this used in the fracking fluid (the composition of which comparatively cheap energy resource, providing new is often protected for commercial confidentiality and favourable conditions for domestic energy sup- reasons) have increasingly been found to be harmful plies and costs, and creating new jobs in the booming both to the environment and to human health, yet shale industry. poor regulations and legislation governing fracking For various reasons other countries have not taken often allow accidents which contaminate surround- the plunge, despite assessed quantities of shale re- ing water sources. sources. These reasons include fear of possible severe There is a need for greater responsibility, through environmental impacts. These are often associated developing codes of conduct and regulatory systems with shale gas extraction accomplished through the governing fracking so as to protect water resources technology known as hydraulic fracturing, or “frack- and the environment. It should be adopted by all ing”; evidence of the impacts is emerging in places nations currently exploiting or liable to exploit shale where intense, unregulated fracking takes place. resources as part of their energy supply. Many of these impacts make themselves felt in water resources. Fracking is a water-intensive activ- 5 Introduction The supply of services involving water, energy and predicted to be living in areas of severe water stress food, fundamental to sustain life, all have a common (W WAP, 2014). factor: the availability and quality of fresh water Understanding competing demands for water and resources, or the lack of them. Some of these links how they are related is critical to meeting emerg- can be more obvious than others. They bind the ing challenges. Comparatively less explored and resources intricately together, so that the development researched, the evolving and dynamic landscape of one can have immediate effects on the ability to of how energy is linked to water (the water-energy produce another. Water constraints almost invariably nexus) has rapidly become an area of interest. On a influence both energy and food production. global level agriculture is still the major water user but The need to understand these connections has regional patterns are quickly changing. In developed never been more urgent. In the next few decades the economies (EU, US) water withdrawals for energy world population is expected to grow by two billion are at 40 per cent of demand and approaching 50 people (UNFPA, 2013), world energy consumption per cent. Similar patterns can be seen in emerging is predicted to grow by 56 per cent (EIA, 2013), and economies (IEA, 2012). agricultural production will need to go up by 60 Major changes in the energy sector can therefore per cent (FAO, 2013). At the same time global water also be expected to affect the state of water resources demand is predicted to grow by 55 per cent and ap- at different levels, so these must be carefully assessed. proximately 40 per cent of the world’s people are Few trends in energy development are currently as 6 Photo: iStock talked about as the possible shale gas revolution. The Reactions to the uncertainties surrounding shale concept captures the possibility of a probably game- gas and fracking vary widely with some countries changing expansion of shale-derived natural gas in hesitating to exploit the resource while in other na- the global energy mix. The wealth of shale resources tions more or less unregulated shale gas industries globally, the cost-effectiveness of shale gas compared and activities expand rapidly. to many other fuels (not least other fossil fuels), com- This report aims to compile the available informa- bined with precision extraction methods, has posi- tion on shale gas and fracking, especially in the light tioned shale gas in the forefront of a potential boom of growing concerns about the consumption of water of natural gas exploitation worldwide. However, the as well as the serious pollution risks. Shale gas has opportunity shale gas brings also brings many ques- been found in many areas with water scarcity and tions yet unanswered, not least about its extraction contamination of the injected and returned frack- method of hydraulic fracturing or fracking. ing water makes the operations highly controversial. These questions include the climate impacts of On the basis of this information, the report presents methane leaks during fracking operations and of policy advice and guidance to aid decision makers CO2 released when methane is combusted are still wishing to steer a way through the current uncertain relatively unknown, as well as the risks of contamina- landscape. tion and depletion of water resources. 7 Note to the Reader The report is primarily the product of a literature have helped the authors to determine probable scales review, and of meta analyses of raw data. of water resource use and the impacts connected to The comprehensive review of recent literature the fracking process. has provided the bulk of information from carefully Though the report is global in focus, the reader screened sources. should know that many references in it refer to the Desktop searches have added complementary USA and its shale gas industry. This is largely because information providing relevant snapshots of cur- shale gas operations in many ways have developed rent issues that might not be covered in the broader much further in the US than in other parts of the scientific literature, including the published views of world, and so it is also where many impacts can be many in the fracking industry. seen and analysed. Much of the data, though, comes Analyses of raw data from several carefully se- from official sources and national laboratories. lected, credible sources (such as Clark, 2012; IEA, The conclusions drawn in the report, and the 2013; EPA, 2012; NETL, 2013; WEC, 2013) describing recommendations made, are those of the authors comparative values of water use in related processes alone. ABOUT THE AUTHORS Dr. Allan Hoffman Professor Em. Gustaf Olsson Mr. Andreas Lindström Dr. Allan R. Hoffman retired in Since 2006 Gustaf Olsson is Mr Lindström is responsible for 2012 as Senior Analyst in the professor emeritus in Industrial SIWI’s core theme on water, Office of Energy Efficiency and Automation at Lund University. energy and food linkages. In the Renewable Energy/U.S. Depart- Since then he has been part time field of water and energy, he has ment of Energy (DOE). His 38 year guest professor at the Technical co-authored and provided research public service career in Washing- University of Malaysia (UTM) and to a number of reports and pro- ton, DC included serving for three at the Tsinghua University in jects. He has developed research years as DOE’s Deputy Assistant Beijing, China; He is an honorary on water related implications of Secretary for (electric) Utility faculty member of the Exeter various kinds of energy generation Technologies. He also served as University in UK. Gustaf has served as well as providing recommenda- U.S. representative to and Vice in various leading positions within tions on best practice enabling Chairman of the International IWA, the International Water green growth. Energy Agency’s Working Party on Association. In 2012 he published Renewable Energy. He currently the book “Water and Energy – authors the blog ‘Thoughts of a Threats and Opportunities” Lapsed Physicist’.
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