Shale Gas

1
Shale Gas

• Chris Bartlow
• Kathleen Montz
• Alex Madaya
• Zach Rogers

2
Objectives

• Is shale gas a viable resource?
• What are the problems with it?
• Social?
• Political?
• Environmental?
• Laws and regulations
• Where is it?

3
What is Shale Gas?

• Natural gas
• Unconventional
• Found in certain types of shale
• 2,000-7,000 feet deep
• Low permeability
• Prevalent in the area
• 2,300 trillion cubic feet in U.S.
• www.energytomorrow.org

Wikipedia
4
Extraction

• Marcellus shale
• Leasing land
• Exploration
• Drilling
• Hydraulic fracturing
• Horizontal drilling
• Collecting
• Restoration
• www.pamarcellus.com

Geology.com
5
Unconventional vs. Conventional
6
Supporting Evidence

• Plentiful
• Cleaner than other fossil fuels
• Money
• Jobs
• Engineering and surveying
• Construction and earthmoving
• Equipment manufacturing, service and repair
• Environmental permitting
• Water transport/wastewater management
• Servicing
• Economy
• Low maintenance
  www.pamarcellus.com

7
The Peoples View

• Most critics support the production of natural
  gas from Marcellus Shale.
• analysts expect shale gas will greatly expand
  worldwide energy supply
• Unconventional gas production is expected to rise
  from 42 in 2007 to 64 in 2010
• There is enough shale to support the U.S. gas
  needs for 90 years
• http//www.energytomorrow.org/Shale_Gas.aspx

8
The Peoples View

• However, not everyone agrees with natural gas
  production from Marcellus Shale.
• Water agencies and citizens around shale regions
  are concerned about
• availability of water supplies needed for gas
  production
• waste water disposal
  http//pubs.usgs.gov/fs/2009/3032/
• There are cases of benzene contamination in well
  water
• Critics believe hydraulic fracturing allows
  chemicals to leak into the groundwater
• Landowners in shale gas areas say the energy
  benefits are outweighed by the environmental
  risks

http//www.npr.org/templates/story/story.php
9
Where?

• Shale gas is natural gas that exists in shale
  deposits
• This shale was formed by the mud of shallow seas
  that existed 350 million years ago
• http//www.naturalgas.org/overview/unconvent_ng
  _resource.asp
• Shale containing natural gas is generally
  sandwiched between two thick, black shale
  deposits

10
U.S. Shale Gas Plays
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Shale Gas Potential

• WORLDWIDE

• LOCAL

• North America is currently the most profitable
  shale gas producer
• Worldwide development of shale gas plays are
  expected to develop, especially in Europe and
  Asia

• Shale gas contributes an 11 rise in natural gas
  in the U.S.
• Pennsylvania Marcellus Shale contains about 500
  trillion cubic feet of natural gas

http//www.pamarcellus.com/
12
How much is left?

• By the end of 2008 shale gas production in the
  U.S. was up to 31.8 trillion cubic feet
• The U.S. contains an estimated 5,000 trillion
  cubic feet of shale gas
• only 500 trillion cubic feet recoverable
• With current technology only about 10 of shale
  gas is recoverable
• It is estimated that the shale gas in the U.S. is
  enough to meet the United States gas needs for
  the next 90 years

http//en.wikipedia.org/wiki/Shale_gas
http//www.api.org/policy/exploration/hydraulicfra
cturing/shale_gas.cfm
13
Difficult to Obtain?

• Although shale gas is one of the fastest growing
  trends in onshore oil and gas exploration there
  is still a long way to go!
• Better, more efficient technology needs to be
  obtained.
• Natural gas historically has only provided 22 of
  the total energy consumed.

http//fossil.energy.gov/programs/oilgas/publicati
ons/naturalgas_general/Shale_Gas_Primer_2009.pdf
(http//fossil.energy.gov/programs/oilgas/publicat
ions/naturalgas_general/Shale_Gas_Primer_2009.pdf)
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Difficult to Obtain

• Each gas shale basins is different and each has a
  unique set operational challenges.
• Because of these differences, the development of
  shale gas resources in each of these areas faces
  potentially unique opportunities and challenges.

http//fossil.energy.gov/programs/oilgas/publicati
ons/naturalgas_general/Shale_Gas_Primer_2009.pdf)
15
Environmental Problems The Overview

• Protection of Groundwater
• Wildlife Impacts
• Community Impacts
• Surface Disturbances

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Ground Water Issues

• Chemicals are added to water to aide in
  fracturing the rock
• This adds to the amount of contaminated ground
  water
• Water is stored in above ground ponds until it
  can be removed or injected back into the earth.

(http//en.wikipedia.org/wiki/Shale_gasEnvironmen
t)
17
Ground Water Issues

• Reduce, Reuse, Recycle
• In using this technique researchers are trying to
  find a way to cut down on water pollution
• It takes 2 million to 4 million gallons of water
  to drill and fracture a horizontal shale gas well
• In the long run is not to bad compared to
  agricultural and municipal use.
• Only .1-.8 of total water use

http//fossil.energy.gov/programs/oilgas/publicati
ons/naturalgas_general/Shale_Gas_Primer_2009.pdf)
18
Water Treatment Techniques

• Current Techniques
• Underground injection
• Treatment and discharge
• Recycling
• New Techniques are developing
• Researchers want this water to be clean enough to
  be used for other purposes as well
• This way shale-gas associated water can be
  considered a resource of its own

http//fossil.energy.gov/programs/oilgas/publicati
ons/naturalgas_general/Shale_Gas_Primer_2009.pdf)
19
Wildlife Impacts

• Gas development can adversely affect animal
  habitat and wildlife.
• They can drill underneath sensitive areas like
  wetlands to reduce wildlife disturbances.

http//fossil.energy.gov/programs/oilgas/publicati
ons/naturalgas_general/Shale_Gas_Primer_2009.pdf
20
Community Impacts

• There are certain Community issues that can arise
• Damage to roads
• Traffic congestion
• Traffic flow
• Noise
• Dust
• It takes intense planning to ensure that these
  factors have the smallest impact possible

http//fossil.energy.gov/programs/oilgas/publicati
ons/naturalgas_general/Shale_Gas_Primer_2009.pdf
21
Surface Disturbances

• Vertical wells can require up to 40 acres per
  well
• Horizontal wells take up much less space and are
  more efficient.

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Benefits

• Natural Gas is the cleanest of all fossil fuels
• Can reduce the emissions of pollutants into the
  atmosphere
• The main products of natural gas combustion are
  carbon dioxide and water vapor
• Carbon dioxide is a less potent pollutant

http//www.naturalgas.org/environment/naturalgas.a
sp
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Environmental Benefits

• Natural gas does not contribute much to smog
• Emits low levels of nitrous oxide and almost no
  particulate matter
• Can be used to fuel vehicles
• Cut down on the emissions from gasoline and
  diesel.

http//www.naturalgas.org/environment/naturalgas.a
sp
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The Social Spectrum

• PRO

• CON

• Means more jobs
• Less pollution
• There is money to be had
• May cause lower prices for fuel in the future

• There are many development issues when it comes
  to shale gas
• People dont necessarily want their land dug up
• Wildlife advocates worry about the disturbance of
  habitats

http//www.energytomorrow.org/Shale_Gas.aspx
http//fossil.energy.gov/programs/oilgas/publicati
ons/naturalgas_general/Shale_Gas_Primer_2009.pdf
25
The Political Spectrum

• PRO

• CON

• Greater energy security
• More money to be had by local and state
  governments
• Allows for less dependence on foreign oil
• Shale Gas can be developed in America

• In developing a shale gas there are a lot of
  factors that need to be taken into consideration.
• There is an abundance of paperwork a contractor
  needs to go through to get the approval to
  harvest shale gas.

http//www.energytomorrow.org/Shale_Gas.aspx
http//fossil.energy.gov/programs/oilgas/publicati
ons/naturalgas_general/Shale_Gas_Primer_2009.pdf
26
Economic Issues

• Advances in Hydraulic fracturing and horizontal
  completions
• Costs more to produce but low risk of shale gas
  wells
• North America the developing leader
• Penn State study showed
• 29,00 jobs
• 2.3 billion dollars to the economy
• http//en.wikipedia.org/wiki/Shale_gas
• http//www.energyindepth.org/2009/08/pa-congressma
  n-marcellus-shale-natural-gas-drilling-critical-fo
  r-states-americas-economic-future/

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Laws and Regulations

• State and Oil gas laws
• Oil and Gas Act
• Oil and Gas conservation Law
• Environmental Protection
• Clean Streams Law
• Dam and Safety Act
• Water Resources Planning Act
• Solid Waste Management Act
• http//www.depweb.state.pa.us/dep/cwp/view.asp?a3
  q542874

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Tax

• PA exempt
• Governor Rendell reconsidering for 2010
• 5 tax
• Natural Gas prices plummet
• http//www.timesleader.com/news/hottopics/shale/Go
  vernor_reconsiders_tax_on_gas_from_Marcellus_Shale
  _09-02-2009.html
• http//www.pahouse.com/pr/166040309.asp

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Conclusion