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An lntroduction to Natural Gas from Shale andTight Rocks
i Nstursl Gss from $hole qnd Tight sourcest
'gei*frt'sfcr A ust'rclic
fficgimna{ fficve{mPmemt
. studies show that developing an Austrarian shale andtight naturar gas industry wi'generate significant
benefits in
regional areas" employingtho*und' ofpeople in construction' operations' infrastructure
and support servlces'
. Many companies are investing in exploration and infrastructurefor the next wave of naturar gas development'
.TheavailabilityofadditionalnaturalgasfromshaleandtightrockswillstimulatetheAustralianeconomy'generating new job opportunities across
a range of industry sectors'
Austrolion bosins with shole gos polenliolAustralia'sEconomY
Natural gas PlaYs a major role in
Australia's economic growth and
energy securitY' Gas fuels 25%
of all energY uses - PoweringindustrY, heating homes and
McArthur
ProductionSouth Australia has the
most advanced shaleand tight gas Projects,
including Australia's fi rst
shale gas well to enter
Production'
Drummond
I
OtuJaY ^ \\ /,- /\r 'v'\ GiPPsland
Clarence-Moreton
PotentialAustralia has an
estimated 437 TCF of
recoverable shale gas
reserves. 1 TCF is enoughgas to Power a citY the
size of Perth for10 Years.
oarring-./ornn"o.n r.rsw J,i'*._ , f SydneY
W Crrr"n shale gas exploration activity
N crr."n, shale oil exploration activity
I-l Potenfat shale oil/gas basins
1. Source: Engineering Energy: UnconventionalGasPrcc-:::-
*i f tr" C il of LearnJ Academies(June 2013)'
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Supp les
': - -' -a : --:i
'-.'= - -::'3 . ss-PPYi^8-:^ Ar-rra ia and New South
. Development of natural gas from shale and ltght sourcesin Western Australia and the Northern Territory couldalso support the growing demand for domestic gas.
. Greater gas development in Australla will increase supplysecurity and price competition as it has in the UnitedStates of America (USA).
. lf the present exploration programs are successful,future development will be able to support secure anddiversified domestic gas projects, with the potential tosupport liquefied natural gas (LNG) projects'
e8ea*a Energy. Natural gas currently offers the cleanest viabLe
source of baseload and peaking power in Australia.
. Australia's naturalgas resources can s gnificantlyreduce greenhouse gas em ss ors b1'r:c ac ng coalas a power fue ,
. Energy-related carbc' :the USA have :':::=: -2012,ffe, o.\::: :.=
)o
--
HAi**ai,)A\Ix[MAtJ
Gas Heatrng
Cooking
Se_cune Energya
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An lntroduction to Natural Gas from Shale and Tight Rocks
New EmergY timderEr&undNaturalgasisfoundinmanyformsofrock,includingshale,coalseamsandsandstone.Tight gas reservoirs are found in low permeability sandstones'
Natural gas is used to
frll millions of households and businesses in Australia'ligr -4._ .,*. -nt
''*r.{*{i.{ar-ri
Sydney HalbourBridge
1,149m long UndergroundShale gas is found as
deep as five kilometresunderground - more than4 times the length of theSydney Harbour Bridge,
which is 1,149m long'
ExplorationWA currentlY has onlY one
tight gas well in Production,while the NT has no Productionof natural gas from shale or tight
rocks. ExPloration is underwaY in
several regions, looking fornatural gas sources suitable
for commercialproduction.
:ri:,*}*$if$;$1$iil1];onshore IOil and Icas Riq I
+3m I Gas Ia fp* Well If 1.5m t*'\ f *d9=\, ft
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Global EnergyShale gas production is
expected to be the biggestsingle source of new globalenergy over the next
decades.
0),
:5:-.=i-:
Barrier RockLayers of impermeable
rock create a natural sealpreventing gas or fluids
found deep undergroundfrom reaching near
Deoo (
.ti
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An lntroduction to Natural Gasfrom Shale and Tight Rocks
NoturqlSt'cges
Gos from Shole ond Tight SourcesCr Devlo7rnenf
Signing Leases arrd
Securing FermitsBefore anY activitY can take
place, industrY must first consult
wlth pastoratists and Traditional
Owners to obtain access to the
land for exPloration under agreed
conditions.
Exploration companles also conductenvironmental and heritage
,,ua,", to identifY areas for sPecial
management' This informationis
included in Plans submitted for
regulatorY aPProval aheadof
anY industrY activitY'
eonstructimg the Weln Site
Constructioncanonlybeginonceregulatoryapprovalissecured and the location for the
well pad is agreed by the
.orOunn pastoralists and TraditionalOwners'
Well pads vary in size' but duringthis phase between 2-5
hectaresoflandwillusuallybecleared.Drillingmultiplewells from one well pad minimises
land use and the
number of roads needed'
'Grth"ting Seisrmie BataSeismic imaging is used to help
understand *nit':"^t ::i;*l :::earth. Soundwaves are bounced
off underground rock structures
and the echoes revear possibre orr-and gas-bearing formations.
Earth scientists study the echoesto determine the best locabon
for drilling and minimise the numberof wells needed'
ManY UsesHYdraulic fracturing can
also be used to stimulategroundwater wells to
lmpiove flow and is essential
to Produce energY from
geothermal "hot rock"systems. rock containing the
gas'
The well design and program isreviewed'
approved and monitored by theState or
Territory regulator' ttri{i ' ;i-''jiiir'.:-. a' ,'t..'tt"--,...::i
r..#F- .::1
- rl
Sensors
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-
.
' aa)'a.ar :^e cF=':::' ,'. a -*: a '* o - Irp 63iry 99,5::\,,'ater and sand, anc 0.5:: Cie r c3 addltlves (see page 10)- down the well at a high pressure, This creates a network oftiny cracks in the rock. The sand helps to hold the cracks open,allowing trapped natural gas to flow to the well.
Tried & TestedHydraulic fracturing has been
used in Western Australiasince the 1950s. More than780 petroleum wells have
been fractured in WA with no
known adverse effects on theenviron ment, water sourcesor public health.
ffiui8c$&rxg Natural Gas
J
and it can safely produce
natural gas, an exterdeotesting program may takeplace. These tests Providethe operator with irrpo'ta-:information about theresou rce.
PXpeE&meslf the testing perioo s ,-:ce;s'-1, apipeline will be insta rec '':- :henew well to an existtng ie:',,''o'
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An lntroduction to Natural Gas from Shale andTight Rocks
WaterManagementThe amount of water
used for shale or tight gas
operations is a small fraction
oi the water used forqgricultu,re,, industry
or recreation.
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Air QualityRe c"cing emissions from naturagas operations is a high priority forthe industry. Wells are designed,constructed and operated to minimiseemissions.
Several scientific studies agree thatgreenhouse gas emissions from shalegas-powered electricity - including thelife-cycle emissions - are significantlylower than those from coal-firedpowerl. All natural gas productionfacilities in Australia, including wellsand pipelines, are tightly controlledand monitored to minimise the risks oflea kage.
Multi-wellpad6 x well heads
Researchn=)so L ,1j.,6 --= a' ='C
emissions from cca s:a- gasproduction is being undertaken
by the CSIRO and the FederalGovernment. More information
can be found on the CSIROwebsite.
B-& m$tee* $r* rfaeq* & rm gxaet
Onshore tight and shale gasdevelopments are designed tominimise impact on the ground surfaceand land use.
Horizontal drilling has helped reducethe footprint for shale and tight gasdevelopments by allowing multiplewells to be drilled and operated froma single drilling pad, significantlyreducing the surface footprint,Using this approach, producers can
deve op a field with one drill every 1-4kllometres. Most of these driil padscan then be connected to a centralprocessing facility by undergrou ndp i pes.
Setting High Standardslndustry operators set and meethigh standards, and strongly supportgovernment regulations that alsoexpect high standards for shale andtight gas development. These highstandards are expressed in the 'GoldenRules for the Golden Age of Gas'published by the lnternational EnergyAgency.
APPEA has developed or contributedto several codes of practice. Thesecodes provide best-practice guidelines,reflect industry priorlties for workingwith communities and are intendedto improve the transparency of all theessential elements of the assessmentand monitoring of industry activity.
Cleaner EnergyThe US Environment Protection
Authority states that: "Compared tothe average air emissions from coal-
fired generation, natural gas produceshalf as much carbon dioxide, less thana third as much nitrogen oxides, andone percent as much sulfur oxides
at the power plant."2
@ abJ*&a
SmallFootprint
A multiple we I cac,averaging between 4-8 r^rell
heads, would cove' ess t^anthe size of a standard rouse
block aft-"r anorehabilitatior.
- a'*
Desc l
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An lntroduction to Natural Gas from Shaleand Tight Rocks
Understonding Frocturing FluidThe fluid from thg hylllYlic fracturing
a pro."'Jillltrv g'g'-sx w't"r and sand
RESPONSIBLE DEVELOPMENTso und enironm ei rot m on ogem en /
Access to inforr"nationThe industry is committed to open and
transparent disclosure of the chemical
additives used in exPloration or
production.
Planning for each well involves
preParing an environmental Plan
management plan with details of any
chemicals used in hydraulic fracturing
and management strategies in place toprotect the environment throughout
the full lifecycle of a project' The
industry supports disclosure andmany
comPanies make this information
available on their websites'
Chemicals management
The fluid used in hYdraulic
fracturing is mostlY made
up of waterand sand
(apProximatelY 99'5 Per
cent). The remainder is
a mixture of chemical
additives used to thicken
the fluld to helP carrY the
sand or beads (known as
"proPPants") which hold
open the tinY hair-like
fissures allowing the gas
to flow more easilY into
the well. The chemicalsreduce f riction, remove
bacteria and Prevent scale
from building uP in the well'
Most of the chemicaladditives used are found in
familiar household Products'
ChemicalConffols
The chemical additives inthe hYdraulic fracturing fluids
are subject to the same
strict regulations applying to
resPonsible chemical use
on farms or in
TransParencYComPanies must submit
detailed Plans for aPProvalby the State or Territory
government ahead of anY
hYdraulic fracturingactivitY.
Some typical additives used in fracturi
fluid and common household items
Guar Gum fi'0'L5%
Concentration ln ice-cream
fi+fwfr4flslfilrNqrfslAllssffra$qFirFrFqj-:=-:''
Acetic Acid 0-O'1%Concentration in
f
,, I
Sodiurr Chloride 0-0'0S1Concentration intable salt 99%
fls$lswqssstrygfe??==::4{FPErtsaT:r
pH Stabilizer {MEAEoe-*.1% Concentrati0nc0smtics 0.5%
Dlsinfectant {SodiumHypochlorite)
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RESPONSI BLECo m m un ily p orln ersh ipsWorking TogetherThe oil and gas industry recognisesthat success depends on long-termrelationships built on integrity,transparency, fairness and respect.
The partnerships between communitiesand the industry have achievedimportant benefits, including:
. economic growth;
. local employment (including jobs forfarmers and Traditional Owners);
. regional and indigenous businessdevelopment;
. training;
. community developmenU and
. infrastructure.Through co-operative com m u n ityrelationships and informed discussion,the industry and the government areensuring the right approach is beirgtaken to unlock the industry's potenraland provide significant benefits toregional areas.
A partnership approach
lndustry, government and CSIRO ravejointly hosted community informarorworkshops in Western Australia a'rdNorthern Territory. This i m porca nlcollaboration aims to work withlocal communities - listening to ardaddressing their concerns - ani idernfysources of information they can :rust,
ln South Australia the industry has beenworking closely with all stakehoicers,in particular the South Australian
Government, through the Roundtablefor Unconventional Gas.
ScienceThe lnternationalGas Union (lGU)has provided a good compilation
of peer-reviewed science and bestpractices in relation to common
environmental concerns. You canread more in the shale gas booklet
available for download at
http ://www.i gu. o
rglga s-knowhow/publ ications/igu-pu bl ications/
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