@.

.i

An lntroduction

to Natural

Gas

from Shale and Tight Rocks

qnd Tight sources $hole from Gss i Nstursl 'gei*frt's t fcr A ust'rclic
fficgimna{ fficve{mPmemt

. .

naturar gas industry wi'generate an Austrarian shale and tight studies show that developing infrastructure and support servlces' of people in construction' operations'

significant benefits in

regional areas" employingtho*und' wave of naturar gas development' and infrastructure for the next exploration in investing Many companies are
across a range of industry generating new job opportunities

.TheavailabilityofadditionalnaturalgasfromshaleandtightrockswillstimulatetheAustralianeconomy' sectors'

Production
Australia's
EconomY
in Natural gas PlaYs a major role and growth Australia's economic 25% energy securitY' Gas fuels

gos polenliol Austrolion bosins with shole

McArthur

South Australia has the most advanced shale and tight gas Projects, including Australia's fi rst shale gas well to enter

Production'

of all energY uses - Powering industrY, heating homes and

Drummond

Clarence-Moreton

! oarring
i'*._
I

r.rsw-./ornn"o.n J, f SydneY

W N I-l

Crrr"n shale gas exploration activity

OtuJaY ^ /\ \ \r /,'v'\

GiPPsland

crr."n,

shale oil exploration activity

Potenfat shale oil/gas basins

Potential
Australia has an estimated 437 TCF of recoverable shale gas
reserves. 1 TCF is enough
gas

to Power a citY the size of Perth for

10 Years.

Unconventional GasPrcc-:::1. Source: Engineering Energy: (June 2013)' Academies LearnJ of n*ir.f tr" Co-uncil opportunitv' communitv Amenitv and

;;;;;'

au Learn more: www'aPPea'com

Se_cune Energy
a

Supp les

-': - -'
a : --:i

H
Ai**ai,)A \Ix[MAtJ

'-.'= - -::'3 . ss-PPYi^8 )o -:^ Ar-rra ia and New South

. . .

Development of natural gas from shale and ltght sources in Western Australia and the Northern Territory could also support the growing demand for domestic gas. Greater gas development in Australla will increase supply security and price competition as it has in the United
States of America (USA). lf the present exploration programs are successful, future development will be able to support secure and

Gas Heatrng

diversified domestic gas projects, with the potential to support liquefied natural gas (LNG) projects'

e8ea*a Energy

Cooking

. . .

Natural gas currently offers the cleanest viabLe source of baseload and peaking power in Australia. Australia's naturalgas resources can s gnificantly reduce greenhouse gas em ss ors b1'r:c ac ng coal as a power fue
,

Energy-related carbc' : the USA have :':::=: -

2012,ffe, o.\::: :.=

Learn more: www.appea.com.au

Page 3

and Tight Rocks An lntroduction to Natural Gas from Shale

New EmergY timderEr&und

permeability sandstones' Natural gas is used Tight gas reservoirs are found in low frll millions of households and businesses in Australia'
ligr ,*.

Naturalgasisfoundinmanyformsofrock,includingshale,coalseamsandsandstone. to

''*r.{*{i.
Sydney Halbour Bridge 1,149m long

-4._ -nt .

{ar-ri

Underground
Shale gas is found as

:ri:,*}*$if$;$1$iil1];
onshore
Oil and

I I
I

*'\ 9=\,

+3m I a fp* f

cas

Riq

1.5m t *d

Gas I Well I f t

deep as five kilometres underground - more than 4 times the length of the Sydney Harbour Bridge, which is 1,149m long'

Exploration
WA currentlY has onlY one

tight gas well in Production, while the NT has no Production of natural gas from shale or tight
rocks. ExPloration is underwaY in several regions, looking for natural gas sources suitable

for commercial
production.

Page 4

Global Energy
Shale gas production is

expected to be the biggest

single source of new global energy over the next decades.

30 ),

:5

:-.=i-:

Barrier Rock
Layers of impermeable

rock create a natural seal

preventing gas or fluids found deep underground from reaching near

Deoo ( .ti

Tight Rocks Gas from Shale and An lntroduction to Natural

Sources Tight ond Shole from Noturql Gos St'cges Cr Devlo7rnenf

Signing Leases arrd Securing Fermits
take Before anY activitY can consult first place, industrY must Traditional wlth pastoratists and

eonstructimg the Weln Site

Constructioncanonlybeginonceregulatoryapprovalis by the for the well pad is agreed secured and the location
Traditional Owners' .orOunn pastoralists and
2-5 but during this phase between Well pads vary in size'

to the Owners to obtain access under agreed land for exPloration conditions.
also conduct Exploration companles heritage and environmental

hectaresoflandwillusuallybecleared.Drillingmultiple use and the

pad minimises land wells from one well number of roads needed'

,,ua,", to identifY

areas for sPecial

is

management' This information for included in Plans submitted of ahead aPProval

regulatorY
anY

ManY Uses
HYdraulic fracturing also be used to stimulate
can

industrY activitY'

groundwater wells to lmpiove flow and is essential

to Produce energY from geothermal "hot rock"

systems.

gas' rock containing the

'Grth"ting

Seisrmie Bata

program is reviewed' The well design and or monitored by the State

to help understand *nit':"^t Seismic imaging is used rock structures bounced off underground earth. Soundwaves are formations. possibre orr- and gas-bearing and the echoes revear the best locabon the echoes to determine Earth scientists study the number of wells needed' for drilling and minimise

::i;*l :::

approved and Territory regulator' ttri{ '!;

i i-''jii

'!,'t..'t
t"--,...::i

ir'.:-. a

Sensors

r..# *F
rl .::1

Leain more, www'aPPea'com'a:

nyuldullL -

rloLr.ul

lllS

t,
a

Low lm pact Prod uction

r can rake up to a year to build the well site, and complete the well. Throughout the well development process, the regulatory agency ensures compliance through regular

' aa)'a.ar :^e cF=':::' ,'. a -*:

\,,'ater and sand, anc

0.5::

Cie

'* o - Irp 63iry 99,5::

10)

dri

c3 addltlves (see page

down the well at a high pressure, This creates a network of tiny cracks in the rock. The sand helps to hold the cracks open, allowing trapped natural gas to flow to the well.

ns

pecti

ns.

When the development of the well is complete, the company works with the

Frmdaxe$r:g

Natura{ ffias fme:

ffiecades
After the land at the well site is restored a small cleared area around each well head remains. The area includes a well head, a gas processing unit and one or two water
ta
n ks,

Wells tvpically produce gas for many years with little su rface a ctrvity othe r tha n regular environmenta I checks.

J
Decom m issioning x>f We&&s ."'.' . .": : .o onger required it is permanently s=: =r :- :, : series of cement plugs - a process :: =: a.;- r---*e'L This cement is a specially '.'* - =...'r xi-r re designed to be long-lasting and
rr --e J

Tried & Tested

Hydraulic fracturing has been used in Western Australia since the 1950s. More than

780 petroleum wells have and it can safely produce known adverse effects on the natural gas, an exterdeo environ ment, water sources testing program may take or public health. place. These tests Provide the operator with irrpo'ta-: information about the
resou rce.

been fractured in WA with no

-- = ..:

-:: - -e^r p'ocess is subject to strict ; ari s reviewed and approved by the

ffiui8c$&rxg
PXpeE&mes

Natural Gas

Decades of

lf the testing perioo s ,-:ce;s'-1, a pipeline will be insta rec '':- :he new well to an existtng ie:',,''o'<, This natural gas s o'oces.:J and can then be used ro'rci,,er-

Production
Natural gas wells that produce from shale and tight sources are expectec I: ''e have a long produchor spanning several

generation, heatlng and ccc<irg jn hOmeS and tO meet a,r!,rf,e .aage Of industrial energy .teecs

l,

decades.

Page 7

from Shale and Tight Rocks An lntroduction to Natural Gas

Water Management
The amount of water used for shale or tight gas

operations is a small fraction oi the water used for qgricultu,re,, industry or recreation.

Research Air Quality

Re

n=)so

,1j.,6

--=

a'

c"cing emissions from natura

emissions from cca

s:a-

='C gas

Setting High Standards

lndustry operators set and meet
high standards, and strongly support

gas operations is a high priority for

production is being undertaken

by the CSIRO and the Federal

the industry. Wells are designed,

constructed and operated to minimise
emissions. Several scientific studies agree that greenhouse gas emissions from shale

Government. More information can be found on the CSIRO website.

government regulations that also expect high standards for shale and

gas-powered electricity - including the life-cycle emissions - are significantly lower than those from coal-fired powerl. All natural gas production facilities in Australia, including wells and pipelines, are tightly controlled and monitored to minimise the risks of
lea kage.

B-&

m$tee* $r* rfaeq*

&

rm

gxaet

tight gas development. These high standards are expressed in the 'Golden Rules for the Golden Age of Gas' published by the lnternational Energy
Agency. APPEA has developed or contributed

Onshore tight and shale gas developments are designed to

minimise impact on the ground surface and land use. Horizontal drilling has helped reduce the footprint for shale and tight gas developments by allowing multiple wells to be drilled and operated from a single drilling pad, significantly reducing the surface footprint, Using this approach, producers can deve op a field with one drill every 1-4 kllometres. Most of these driil pads can then be connected to a central
processing facility by undergrou nd
p
i

to several codes of practice. These

codes provide best-practice guidelines,

reflect industry priorlties for working

with communities and are intended to improve the transparency of all the
essential elements of the assessment

and monitoring of industry activity.

Cleaner Energy
The US Environment Protection

Multi-wellpad 6 x well heads

pes.

Authority states that: "Compared to the average air emissions from coalfired generation, natural gas produces half as much carbon dioxide, less than a third as much nitrogen oxides, and one percent as much sulfur oxides at the power plant."2

*&a

abJ

- a'*

Small

Footprint
A multiple we I cac, averaging between 4-8 r^rell heads, would cove' ess t^an

the size of a standard rouse block aft-"r ano

rehabilitatior.

Learn more: www.appea.com.au

Desc l

from Shale and Tight Rocks An lntroduction to Natural Gas

RESPONSIBLE DEVELOPMENT m on ogem en rot ei enironm und so

Access

to inforr"nation

to open and The industry is committed chemical the of transparent disclosure

or additives used in exPloration production.
Planning for each well involves preParing an environmental Plan of any management plan with details

Understonding Frocturing Fluid

a pro."'Jillltrv

fracturing The fluid from thg hylllYlic g'g'-sx w't"r and sand

in fracturi Some typical additives used fluid and common household items Guar Gum fi'0'L5% Concentration ln ice-cream
fi+fwfr4flslfilrNqrfslAllssffra$qFirFrFqj-:=-:''

fracturing chemicals used in hydraulic in place to and management strategies

protect the environment throughout The the full lifecycle of a project' and many industry supports disclosure
comPanies make this information available on their websites'

Acetic Acid 0-O'1% Concentration in

f

Chemicals management
The fluid used in hYdraulic fracturing is mostlY made up of water and sand (apProximatelY 99'5 Per cent). The remainder is a mixture of chemical
,,
I

Sodiurr Chloride 0-0'0S1 Concentration in table salt 99%

fl s$lswqssstrygfe??==::4{FPErtsaT:r

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

pH Stabilizer {MEAEot e-*.1% Concentrati0n c0smtics 0.5%

to flow more easilY into the well. The chemicals

reduce f riction, remove bacteria and Prevent scale from building uP in the well'

Dlsinfectant {Sodium Hypochlorite) <0'02% Concentration in bieae

*'o*-

Most of the chemical additives used are found in familiar household Products'

Common Chemicals
TransParencY
ComPanies must submit detailed Plans for aPProval
by the State or Territory government ahead of anY

Chemical

Conffols
The chemical additives in the hYdraulic fracturing fluids are subject to the same resPonsible chemical use on farms or in

Many of the chemicals found are i hydraulic fracturing fluids i household found in common

strict regulations applying to

hYdraulic fracturing activitY.

commercial aPPlications' Thr jel include guar gum used in sweets, table salt, detergents ar antisePtics - all of which low used in extremelY concentrations'

factories.

Page 10

RESPONSI BLE DEVELOFMENT Co m m un ily p orln ersh ips

Working Together
The oil and gas industry recognises

Science
The lnternationalGas Union (lGU) has provided a good compilation of peer-reviewed science and best practices in relation to common

that success depends on long-term relationships built on integrity,

transparency, fairness and respect.
The partnerships between communities and the industry have achieved

environmental concerns. You can read more in the shale gas booklet
available for download at http ://www. gu. o rglga s-knowhow/
i

publ ications/igu-pu bl ications/

important benefits, including:

. . . . . .

economic growth;
local employment (including jobs for

farmers and Traditional Owners); regional and indigenous business development; training;

community developmenU and

infrastructure.

Through co-operative com m u n ity relationships and informed discussion, the industry and the government are ensuring the right approach is beirg taken to unlock the industry's potenral and provide significant benefits to regional areas.

A partnership approach
lndustry, government and CSIRO rave

jointly hosted community informaror

workshops in Western Australia a'rd Northern Territory. This i m porca nl collaboration aims to work with local communities - listening to ard
addressing their concerns

- ani idernfy

sources of information they can :rust,

ln South Australia the industry has been working closely with all stakehoicers, in particular the South Australian Government, through the Roundtable for Unconventional Gas.

Learn more: www.appea.com.au

Page 11