1. BRIEF HISTORY OF THE OIL AND GAS INDUSTRY IN ROMANIA..5 2. NCONVENTIONAL ENERGY RESOURCES POTENTIAL AND RECOVERY..............................................................................................................7
3. SPECIFIC EQUIPMENT, TECHNIQUES AND TECHNOLOGIES FOR DRILLING, COMPLETION AND OPERATION OF THE WELLS FOR UNCONVENTIONAL GAS FORMATIONS..................................................................................................................................................14
4. OIL OPERATIONS ASSOCIATED TO UNCONVENTIONAL GASES AND POTENTIAL ENVIRONMENTAL IMPACT................................16
5. ECONOMIC IMPACT OF NATURAL AND UNCONVENTIONAL GAS RESOURCES IN ROMANIA, AT NATIONAL AND LOCAL LEVEL........................................................................................................25
6. LEGAL FRAMEWORK APPLICABLE TO THE RECOVERY OF GAS RESOURCES FROM UNCONVENTIONAL DEPOSITS......28
7. CONCLUSIONS AND RECOMMENDATIONS.30
ANNEX A - LIST OF AUTHORS ..36
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INTRODUCTION
For the readers of this paper who are less familiar with the role of the Romanian National Committee for the World Energy Council (RNC - WEC) in the energy sector in Romania, we would like to mention thefollowing: - RNC-WEC was established in 1924 and is a founding member of the World Energy Council, an organisation with global reach that is actively involved in developing strategies in the field of energy, and an important international forum involved in the development of the energy sector and in the creation of a framework for the active exchange of information and opinions through symposia, conferences, exhibitions and publications (its own and/or those of partners); - RNC-WEC, through more than 150 member entities and 40 honorary members, important personalities from thefield of energy, is actively involved in developing strategies and policies on energy, including on fuel mineral resources, that are made available to policy makers for professional purposes, for the development of the legal implementation framework; - the analysis, during the monthly meetings of the Board of RNC-WEC, of the urgent issues in the field of energy, the publication, in the "Energy Bulletin", a monthly newsletter, of original scientific articles and translations, presenting news in the energy and environment field; - the organisation, every two years, of "FOREN, the Regional Energy Forum", a prestigious regional manifestation, which includes events dedicated to conventional and unconventional energy resources.
An important element in the development of strategies in the energy sector is the assessment of the current situation. An important conclusion of the specialists in the field of energy resources (fossil fuels) is that Romania's current reserves of oil and gas will run out in the next 25-30 years, if the current level of extraction and consumption is maintained. However, during this period, the production (extraction of fuel mineral resources) shall decline steadily, which will lead to an increased dependence on imports and, inherently, to higher prices.
One of the findings is that the assessment of the potential of the country for the discovery of new fossil fuel resources to replace the natural gas reserves, which will soon be depleted, is the necessity and the obligation that the current generation has, at themoment, to provide energy for future generations.
The emergence of new global, albeit controversial opportunities, represented by therecovery of unconventional gas, in general, and of shale gas in particular was bound to attract the attention of the RNC-WEC, an organisation actively involved in the analysis of medium- and long-term development strategies of the energy-environment sector in Romania, including, implicitly and necessarily, thefuel mineral resources.
RNC-WEC has therefore decided to draft a report on the potential and possibilities of capitalising Romania's natural gas resources from unconventional deposits, having regard to: NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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- Romania has favourable indications of unconventional gas resources, associated with argillaceous formations known for their potential to generate hydrocarbons (shale gas), from coal beds (CBM) or sandstones with low yield capacity without stimulation methods, by hydraulic fracturing (tight gas). - the levels achieved in the recovery of unconventional gases, particularly of shale gas in the U.S., the pioneer of this activity, which covers over 30% of the domestic consumption, converted the U.S. (previously an importer) into an exporter of natural gas, leading to aprice decrease by over 50% in 10 years (!);
The opportunity to assess this new resource is given by the favourable geological perspectives of the oil and gas basins of our country, in conjunction with over 150 years of experience in the Romanian oil sector and with the worldwide development of technologies that ensure the conduct of the activities related to the extraction of unconventional gas with acceptable levels of risk.
The need to evaluate the potential of this new source, able to replace the natural gas reserves, which shall be exhausted by mining in the next 20-25 years, is also related to: a) theneed to reduce dependency on imported gas; b) the reduction of the social effects resulting from the increase in gas prices over acceptable levels, compared with the average income of the population, and the rising unemployment among skilled workers in the oil sector, by the gradual closing down of existing mining facilities.
We aim, in this introductory chapter, to answer a frequently asked question by people less familiar with the oil field: "What is unconventional gas?" In short, this new sub-category of the unconventional gases is included in the broader gas category, has an identical chemical composition, but what sets it apart are details related to their genesis, type of deposits, trap type, lithology and permeability of collecting channels, and mining technology.
The need to assess the country's unconventional gas resources, the disputes and controversies arising from the civil society and from the population have caused RNC-WEC to draw up a report, to be used to present qualified points of view on unconventional gas recovery, to be made available to the authorities, to the media, to the NGOs and the stakeholders.
This report is a first step in an ambitious future project: the creati on of a regi onal centre for unconventional gases called the European Centre for Excellence in the fiel d of Natural Gas from gas-bearing cl ays CENTGAS through: establishing international partnerships between CENTGAS and equivalent or relevant entities around the world creating and continuously updating, together with international partners, an information resourcecentre, representative for Europe, in the field of general and specific geological conditions, of the available technologies and best practices, experiencein managing the social and environmental impact, economic models that apply to the development of natural gas from gas-bearing clays, general or specific legislation.
For this report, CENTGAS has assembled a team formed of 43 speci alists, listed in Appendix A, from the academic field, from research institutes, people with vas experience and long-term activity in the oil and geosciences fields. In the kick-off meeting of the report drafting process, held on 12 - 14 October 2012, that was attended by the majority of themembers of the selected team, it was decided that thereport should have a 5-module structure, covering key aspects of the shale gas potential and recovery evaluation. The activity of these teams is shown below: - the assessment of geol ogical perspecti ves, analysing the generating potential of unconventional gases, in their various presentations, as shale gas, CBM, tight gas and gas hydrates in the main oil basins of Romania, in the mainland and maritimeareas; - the presentati on of the existing technol ogies, with a focus on new technologies whose application reduces the risk of technical accidents to acceptable levels, lower than those of the classical technologies, applied in the mining of conventional hydrocarbons; NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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- the objecti ve assessment of the possi ble impact on vari ous envi ronmental factors (water, soil, air, seismicity, noise, etc.) with the presentation of the possibility to reduce impact to acceptable levels via technical measures and activity monitoring; - the presentati on of the main economi c, social and politi cal advantages, the latter due to ensuring the country's energy independence, no longer depending on imported gas; - the presentati on of the appli cable primary oil and envi ronmental legislation, of the compatibility with the European legislation and the emphasis on the need to supplement the secondary legislation (technical instructions, rules, regulations on activity monitoring and control, implementation of good practice rules established by the international practices in the field of the recovery of unconventional gases).
The activity of the teams, assembled for each module, covered about 9 months and resulted in thedevelopment of a comprehensive report of about 400 pages, with specialised terminology, aimed at oil and geosciences specialists. The paper is not confidential, it will be made available at the offices of the RNC-WEC and will be transmitted upon request, in digital format or printed (provided that a reproduction fee is paid) to the legal entities concerned.
Based on thecomprehensivereport, an abstract of about 100 pages was prepared, with a wider target audience, which is posted on the RNC-WEC website www.cnr-cme.ro and which will be submitted to thecentral and local stakeholders.
In order to target a wider audience and to facilitate the easier browsing and understanding of the information, this summary of 35 pages was also developed and posted on the website of the RNC-WEC; it was al so partially published in the "Energy Bulletin" and made available in scientific events organised either by RNC-WEC or in partnership with other entities.
Thank you for your interest in the issue of unconventional gases.
RNC-WEC and the staff of CENTGAS
1. BRIEF HISTORY OF THE OIL AND GAS INDUSTRY IN ROMANIA Romania has over 150 years of experience in the oil industry and of over 100 years in the natural gas industry, in all the specific and support sectors of activity thereof. According to historical and archaeological evidence, be it direct or indirect, oil was used on the territory of the country from the 1st century A.D. for various purposes (as medicine, lubricant, to seal wooden boats, as fuel, for the construction of houses and walls etc.). In contrast, since the 15th - 16th century and until the middle of the 19th century, there is more evidence and information regarding the existence, processing, use and export of crude oil (called by the locals "heavy fuel oil"), both in Moldova and Munteniaetc. During the years 1857 - 1918, we witness the formation and affirmation of the oil industry in Romania. The year 1857 is considered the official birth year of the Romanian oil industry, as Romania (the United Principalities) witnessed, for the first time in the world, three outstanding events, namely: it was the first country in the world to be officially recorded in the world statistics with a production of 275 tons of crude oil; the first oil refinery in the world st art s it s act ivity in Rfov, near Ploiet i, and t he city of Bucharest , the capit al cit y, becomes the first city in the world to have street lighting that used burning oil. During this period, a series of great achievements occurred in all the sectors of this industry, i.e. geology, drilling wells, crude oil recovery, oil transportation and processing, tools and equipment, training of specialists, laws etc. As a result, the crude oil production increased continuously, reachinga record of 1,883,619 tons (in 1913) and a refining capacity of over 1,800,000 t/year (in 1916), Romania being the sixth oil producer in the world. NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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As regards natural gases, 1909 marks the discovery of the first deposit on the current territory of Romania, in Srmel, Sibi u Count y, and as a result t he year 1909 is considered the official birth year of t he Romanian nat ural gas industry, even if it was discovered and used earlier (1865 - 1900) in the areas in which crude oil was extracted. During this period, Romania has important achievements in the field of natural gas, some of them European or world premieres. During the first World War, the Romanian oil and gas industry faced significant losses due to the destruction/self-destruction of numerous wells, refineries, tanks, pipelines, oil products, buildings and plants, etc. The years 1918-1943 are the maturity era of the oil and gas industry in Romania. After the war, the recovery of the Romanian oil industry took about 6 years (until 1924), and the re-launching started in 1925-1926, as a result of the Mining Law adopted in 1924. It must be noted that general crude oil production increased from 2,316,304 t in 1925 to 8,704,000 t in 1936, the maximum inter-war production (ranking second in Europe and sixth worldwide), and the refining capacity has also increased markedly, from approx. 1,650,000 t in 1924 to 10,600,000t in 1939 - 1940. As regards natural gas, after the completion of the Unification of the Romanian State, the companies operating in the field of methane gas in Transylvania were seized and afterwards they became the property of the Romanian state. The Romanian gas deposits were estimated to be the most significant in Europe, both in terms of production volume and in terms of purity (up to 99.5%). In 1938, Romania ranked third worldwide in terms of natural gas production with a share of 17% of the worldwide output. World War II occurred in the period 1939-1945, and it involved many countries, including Romania. It must be mentioned that the Romanian oil, extracted during 1940-1944 represented the main source of fuel for the powers of t he Axis, as well as t he fact t hat the cit y of Ploieti and the Prahova area suffered many damages in terms of the oil industry, as a result of thebombings of the allied forces in 1943-1944. Theyears 1945-1989 marked thegreatest development of theRomanian oil and gas industry, in all the specific or support sectors of activity. This period included two main stages, namely: 1945-1965 when all the specific and support activities underwent a restoration, restructuring and diversification process, and 1965-1989, which witnessed an intensive and extensive development of this industry. As a result of the significant increase in the number of drilling works, including for geological research, many new deposits of crude oil and gas deposits were di scovered and mined, both on mainland and on the continental shelf of the Black Sea. As a result of the intensive mining of old and new deposits, of the improvement of the extraction technologies and of the stimulation of wells, the crude oil production reached a historical high in 1977, 14.63 million tons, and the natural gas production reached a similar level in 1986, with 36.3 billion cubic metres of gas. During this period a vast network of pipelines was built for the transportation of crude oil, oil products and particularly of natural gas, the refining capacity increased to over 32 million t/year, a strong petrochemical industry was developed and one of the most powerful oil equipment industries in the world was created, Romania being the third manufacturing country in the world (after the USA and the Soviet Union) and ranking second in termsof exports (after the USA). A key part in the reconstruction, development and modernisation of the oil and gas industry was played by the qualified staff, trained both in the general national education system and in schools specific for this industry, as well as the important specific design and research institutes in the field. After 1989, the economy in general and the oil and gas industry in particular experienced a dramatic fall for various objective and subjectivereasons (the natural declineof the deposits, thedrastic reduction in exploration works, the insufficient investments in machinery, tools and advanced technologies, the poor management and legislation, etc.). As a result, in 2012, thecrude oil production fell to about 4 million t, and the natural gas production to about 10 billion cubic metres. In addition, the operational refining capacity decreased to about 50%, and the petrochemical capacity to about 20%, compared to the year 1989. As a consequence of this situation, the oil equipment industry has also registered a substantial decrease, reaching a volumeof 20-30% of that existing in 1989. As for crude oil, raising the final recovery factor from the mined deposits is paramount, as is starting the exploration and operation of crude oil reserves located at great depths (over 3,000 - 4,000 m). For natural gas, Romanias short, medium and long term perspective to increase production is significantly better due to important conventional deposits located on the continental platform of the Black Sea and to unconventional deposits such as shale gas, tight gas, coal bed methane and, potentially, methane hydrates. NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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In conclusion, we may state that, while theproduction increase forecasts for crude oil are limited, for natural gas they are optimistic and certain in the short, medium, and long term.
2. CONVENTIONAL ENERGY RESOURCES POTENTIAL AND RECOVERY The evolution of the concepts and the new European standards for unconventional energy resources, the launching of economic policies all depend on the knowledge of the potential for such resources, respectively, of gas- bearing clays, on the assessment of the reserves and of their quality, on their distribution in the territory, and, finally, on the methods of recovery (in many different economic fields). The study provides a unified and balanced knowledge of all types of unconventional energy resources, namely, gas-bearing clays, of their regional and local distribution and of their qualities. Unconventional energy resources are an alternative form of energy, they are located in sedimentary formations of different ages and are found, usually, at great depths: shale and tight gas, heavy oil and oil shale, coal seam gas and in the cold ocean areas - gas hydrates.
Romania has proven reserves of natural gas for another 10-15 years, and according to the latest report US Energy Information Agency (EIA), released in June 2013, the shale gas reserves increase by 47% the potential recoverable gas reserves, worldwide. Globally, the shale gas reserves represent 32% of thetotal reserves of natural gas. Romania, with a recoverable reserve estimated at 1444 billion cubic metres, ranks third in Europe, after Poland (4190 billion cubic metres), France (2879 billion cubic metres), being ahead of Denmark (906 billion cubic metres) (According to EIA-2013). Geologi cal formations wi th shale gas (shale gas-SG) potential
In Romania, the potential gas-bearing shale formations, gas shales, are located in Orogen units, in folded structures (with surface exposure, but which also are extending to the deep areas of the Eastern Carpathians), andin platform units (in the Carpathian foreland basin), at depths exceeding 2500-3000 m (the Moesian Platform - Romanian Plains, with its extension in Southern Dobruja, the Scythian Platform (Brlad Depression), the south of the Moldavian Platform). Also, the potential conditions for the existence are fulfilled in the Getic Depression, the Pannonian Depression or the Transylvanian Basin.
The age of the formations of interest covers a time interval ranging from Early Paleozoic (Silurian - 425 million years) to Neozoic (Paleogene - 30 million years). The Paleozoic ones, very old, indicate parameters with optimal values, close to theinternational standards. The thermal gas generating potenti al of the argillitic formations was tested in Carpathian, extra-Carpathian and intra-Carpathian geological units and on the continental platform of the Black Sea.
The study presents the criteri a and standards for evaluating the gas-bearing potenti al of clays with organic matter content. The Total Organic Carbon content (TOC-wt%) may have values between 0 and 12 as the NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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maturity of the organic substance increases; the vitrinite reflectance (Ro%) may establish the maturity degree of bituminous rocks, whether they have entered the oil window or not (gas window, respectively); At Ro values lower than 0.6, thereis an immaturity stage. Mature systems have Ro values between 0.6 and 1.35.
Organofacies (rocks with a high organic matter content) - established by the synthesis of data included in the scientific papers - indicate, for the formations of interest: o High productivity of organic matter, a diagenesis (thermal) evolution of the primary sediments influenced both by the burying history and by the tectonic evolution of the basin (history of break-thrusts which happened one after another); the maturity of the organic substance did not take place uniformly, in terms of time (in the sediment pile) or space(fromnorth to south, along the basin). The formations with good potential are those in which the TOC values are higher than 2 - 4%, with avitrinite reflectance - Ro:1.5%, with a type II-III kerogen and which havehad a maturation temperature higher than 430 o C. These formations can be explored.
The thi ckness of the formations is variable (100 - 2000 m), and its values are influenced by the tectonic framework, by the paleo-relief of the basin during their accumulation and by the frequency of the drillings which
C.Or Pl .Mo. Pl .Mol d. Dep.Bar. Dep.Get. Dep.Pann. B.Tr ans.
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have intercepted such formations, in PMol and PSc it increases from the east (approx. 100 m) to the west (more than 1000 - 1500 m), and in PMo, it differs from one basin (Calarasi, Alexandria) to another (Bailesti), increasing from south to north andm to the centre of the platform, the shale formations have bed-like, tabular geometries, with lateral thinning, frequently interrupted by a systemof major faults. o For the operation stage, formations with thicknesses of more than 50 m haveto be taken into account, provided that lithological homogeneity is found. The lack of lithological homogeneity (granulometric, petrographic and structural) makes the assessment of the thickness of the argillaceous sequences difficult, stricto sensu, and this lack of homogeneity is specific for a very large number of the described formations. The main li thol ogi cal types are represented by clays, argillites, dysodiles, menilites, marls, alternating with thin strata of sandstones, and the dilution degree of the clays and argillites may reach 50% or may exceed this value. The lithological columns, based on data from exposures or drillings, have to be completed by sequential analyses. The results of the analysis indicate ahigh potential for the Silurian formations of theMoesian Platform, of the Scythian Platformand of the Moldavian Platform. In the Eastern Carpathians and in theGetic Depression, the Oligocene formations have an average potential. For the Permian and Jurassic formations in the Southern Carpathians (Resita - Moldova Noua area), for the Carboniferous and Jurassic formations of theMoesian Platform and for the Cretaceous and Miocene formations of the Transylvanian Basin the potential is low.
As for the Pannonian Basin and the Black Sea continental platform, the available information does not allow for such assessment.
In the Orogen uni ts (Fol d Belt Basi n): Eastern Carpathians The GS formati ons are extensive along the Eastern Carpathians and are delimited by the Crystalline- Mesozoic zone or, partially, by thesouthern sector of Neogene vulcanites - to thewest, and by the structures of the Moldavian and Moesian Platforms, to theeast and south-east. In many cases, there is an overthrust of these formations (overthrust sheet structures).
The facies covered by GSFm are flysch facies with folded formations (folded basin). Their extensions, to the west-east, are much more diminished (km) compared to the north-south extensions (thousands of km). In terms of organi c matter content, the maximum values (8-15%) of note are those of the Audia Formation and of the dysodile formation (including the lower and upper dysodiles). The values of the Total Organi c Carbon (TOC) obtained by the Rock-Eval analyses go beyond the limit of interest, compared to the classic standards of gas- bearing argillites (gas shale) only in case of the menilite formations (TOC =6.64), of the brown marl formations (TOC =12.69) and of the dysodile formations, for which TOC reaches considerable values =17.62%). The marked differences, for thedysodiles, between a minimumof 0.82 and a maximum of 17.62 suggests the lack of homogeneity of the sequences and the diversity of the rhythms of the formation in its entirety. These differences will pose difficulties in terms of the assessment of the gas-bearing potential and, implicitly, of the possible calculation of reserves. Vitrini te reflectance could not be assessed in all cases. The Ro values are compliant with the requested standards (Ro>1.3) only in the case of the Audia Formation, which reaches the required maturity for the dry gas window.
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In the Southern Carpathi ans, Resi ta -Mol dova Noua Basin The geological formations with gas-bearing potential (gas shales or bituminous argillites, also named black shales) are found in the Getic Nappe(Resita-Moldova Noua sedimentation area, and in the Danube Units (Svinita- Svinecea Mare and Presacina sedimentation areas), at the level of the Paleozoic and Mesozoic sedimentation cycles. Among these, the following are better known: The Uteris Formation, from the Jurassic period, is the formation with the highest gas-bearing potenti al in the Southern Carpathians, being represented by argill aceous, bi tumi nous shales, with siderite lenses, with a thickness of 50-100 m, approximately. In the underground of the Anina Mine, the bi tuminous shales are present in all mining fields: the Northern Mining Field, the New Area Field (3Vest, 2Vest sectors) and in the Bradet Field. In these mining fields, the surface geological structures do not correspond to the structures in the depth of the mining operations, which could reach, in Anina, a depth of 1300 m). The organi c matter, expressed as organic Carbon, varies from 2 to 20%, with a maximumanalysed of 5-15%. TypeA bitumen exceeds, in few cases, 1% (with an average of 0.25 - 0.50).
In the Geti c Depression,
The Olanesti and Bradulet Formations may have gas-bearing potential: the Olanesti Formation has a maximum thickness of 40 m and includes shales with pebble and cobbles with conglomeratic intercalations. The upper section contains 70% grey shales and silts, 25% sublithic sandstones and 5% microconglomeratic facies. The Bradulet Formation has significant facies variations, fromwest to east. In the eastern area, Raul Doamnei-Valsan includes 80% bituminous shales, similar to the Pucioasa facies in the Eastern Carpathians, 15% sublithic sandstones, and 5% marls, siderites and microconglomerates. Content of organi c matter: The Olanesti Formation has an average content of organic matter ranging between 2 and 4%, max. 5%. The average calculated value is of 4.53%, and the related TOC is of 1.18%. The Bradulet Formation has a content ranging between 4 and 8 %, with a maximum of 27 %. The average calculated values are of 7.37 %, and the resulting TOC is of 1.92 %.
Intra-Carpathian units (Tertiary Backarc Basi n). In the Transyl vani an Basin The formations which include potential gas-bearing shales are found at different stratigraphic levels (Filipescu, 2001): At the Eocene level: - The Clat a and Turea Group (Middle-Late Eocene) with bituminological potential (limestone, sandstones, marls and evaporites in shallow water marine facies); At Oligocene level: - The Ileanda Mare formation (bi tuminous sandstones, micrites, calcilutites, in marine shelf facies); - The Vima and Chechis Formati ons (Early Oligocene-Miocene) with organic content shales, in marine facies. These formations have been also intercepted by drillings. The synthesis of the drilling data indicates the existence of three oil bearing systems (source and reservoir rocks); a part of the source rocks may be of interest for shale gas, and apart of thereservoir rocks, for tight gas (Krezsek C. et al., 2010). 1) At the Badenian - Late Miocene level: COrg - 0.5% on average, and TOC >1~2 %, type II and III kerogen, thermally immature (Tmax =423 - 436C). 2) Late Cretaceous-Oligocene (5,000 km2); in t he Northern BT, along t he Bogdan Vod fault, in the Ileanda Formation (with TOC =1.07 %, Tmax =420oC); NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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3) Mesozoic (2,5000 km2); in the median area of the Dacides, at depths ranging from 4,600 to 4,800 m, in the Jurassic carbonatic sequences.
Platform uni ts, in the Carpathian Forel and (Forel and Basins): In the Moesian Platform, the main potentially gas-bearing formations are: The ndrei Shale Formation (Ordovician-Silurian-Early Devonian), the geochemical indices of the east and west part of the platform indicate that this formation is included in the category of source rocks outside the oil window, at the stage in which they still generate condensate and dry gas (metagenesis stage). The generating potential of the Cl rai Formation is debatable, after analysing the results of theexamined cores from Arget oaia, Chilii, Drvari, Brdet i, Rmet i, and Licot eanca wells (organic carbon - 0.12-1.7 %; soluble organic extract - 0.008-0.042; extract of hydrocarbons - 32-75 %; hydrocarbon in rocks - 32-468; traces of pyritic sulphur - 0.30; traces of FeO - 4.40; pH - 8.6-9.6), the hypothesis of the pronounced nature of source rocks of these deposits remains open. The Vlain Format ion (Namurian - Westphalian), a sequence of special interest as regards the hydrocarbon generating potential is the argillitic series, rich in vegetal detritus and with strata of coal with crossed stratifications, deposited in tidal deltaic facies.
In the Scythian Pl atform (the Brl ad Pl atform), The formations of interest are found at the level of the Cycle I - Silurian - Devonian, with lithological types represented by shales (20-30 %), limestones (30-50 %) and sandstones (30%). They have been intercepted at depths ranging between 900 and 3800 m and have athickness of 25-30 m. The organogeni c parameters have average values ranging between 1-0 and 2.4 for TOC (%) and between 0.60 and 3.5 for Ro (%-vitrinite reflectance).
In the Mol davian Platform, The black shales formations of the Middle and Late Silurian may have an important potential. They can be found at variable depths (400 - 2300 m) and reach thicknesses which exceed 30-40 m. Petrographically, they are shales alternating with siltites and fine sandstones. The TOC values vary between 0.7 and 1.15, and the vitrinite reflectance (Ro) between 0.35 and 1.6.
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In the conti nental pl atform of the Black Sea, a synthesis of the research and analysis results and of the analysis of the cores extracted from the drillings performed in the continental platform of the Black Sea indicates the following formations and ages, which may havea gas-bearing shalepotential: Formations of graptolitic shales?. Silurian. Graptolitic shales (bituminuous argillites) with a thickness of 400 m; it is the formation with the highest gas-bearing shales potential. The black argillitic formation (Middle Jurasic - Dogger) represents a litostratigraphic unit that is well represented in the entire northern area (offshore extension of the Tulcea Unit) of the continental platform. The characteristic of this formation is the predominant development of the pelitic-siltic rocks, dark in colour, and intensely tectonised. The Histria Formation Oligocene - includes in an extremely high percent of shales and argillites (micro-gravelly sericitic, micro-gravelly marly, micro-gravelly sideritic, micro-gravelly tuffaceous shales and argillites), with accidental micro-gravelly and micro-crystalline sideritic dolomites. It is theformation with the highest potential The Histria oil-bearing system is an identified oil-bearing system, including the generation-discharge subsystem represented by Oligocene shales and the migration-accumulation subsystem composed of hydrocarbon deposits locat ed in t he Sinoe, West Lebda, East Lebda, Pescru and Delt a st ruct ures. It may have pot ent ial relat ed to the presence of thermal gas-bearing shales (TOC =0.95 - 3.93).
Geologi cal formations wi th compact deposi ts, with l ow permeabili ty (ti ght gas - TG) In Romania, in the Transylvanian Basin, the geological formations that meet the required conditions to be defined as tight gas bearing structures have geological ages corresponding to the Badenian and Sarmatian. The Buglovian in the Transylvanian Basin includes the bed complex developed bet ween the Ghiri t uff and the Bora - Turda tuff. The deposits are in sedimentation continuity with the Badenian and include, in general, marls with sandstone, sand and dacitic tuff interlayers. The natural gas formation and accumulation conditions in the Transylvanian Basin offer the perspectiveof the discovery of the extension of low permeability compact formations in older gravelly-calcareous formations, much more permeable than those from the Middle Miocene - an issue which was totally ignored in the previous exploration activity.
Coal bed methane (CBM) i n Romania
Coal bed methane (Rom. MASC; eng. Coal Bed methane CBM or Coal Seam Gas - CSG) is a naturally generated gas as a result of the alteration processes of the coal-generating organic matter, Methane(CH 4 , MASC), Carbon dioxide (CO 2 , eng. Blackdamp), Carbon Monoxide (CO), Ethane, Hydrogen (H 2 ), Nitrogen (N 2 ), Radon (Rn).
The Steierdorf formation, Early Jurassic, from the Resita Basin, is a continental, intra-mountain flat formation, represented by conglomerates, microconglomerates, sandstones, clays, tuffs and coal beds (8 layers, coking pit coal), with a thickness ranging from 60 to 250 m. This coal-bearing formation (coking pit coal) meets the following criteria, significant for several CBM extraction options: the CBM reserves are considerable, taking into account the mining history of this area, that confirms a massive and permanent generation of CBM in the underground. The infrastructure of thecentral area of the Resita Basin is industrial in nature (mining operations) and allows for theproper fitting of the CBM mining wells.
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Gas hydrates of the continental shelf of the Black Sea The gas emissions in the Black Sea (mainly methane) are present in all depth ranges, from coastal area to shelf area, in the continental flexural area, on the continental slope and even in the maximum depth abyssal areas, associatedto mud volcanoes, acase in which emissions can be episodic in nature.
The seismic and acoustic investigations carried out in the Romanian shelf area of the Black Sea using a sub-bottom profiler revealed the existence of fields in which seismo-acoustic facies are indicative of the presence of gas in shallow sediments. The reflexion seismicity data shows that gas is present in sediments at depths greater than 1,300 m, suggesting a thermogenic origin as well. The gas accumulations located in the external shelf area and in the upper section of the continental slope also originate from the decay of sedimentary deposits rich in organic matter, but which have accumulated in this area when the level of the Black Sea was 100 m below than the current one. The gases were able to migrate to the surface along thefractures. The equivalent volume in methane of the hydrates accumulations was estimated very roughly. These are: 12 3 x 10 11 m 3 of methane for the area of the abyssal cone of the Dnieper River; 6,945 x 10 8 m 3 of methane for the area of the abyssal cone of the Danube River; 4.8 km 3 or 0.1 - 1 x 10 12 m 3 of methane. * * * For the formations which were intercepted by the drillings, at depths varying from 2000 to 5000 m, cores which woul d allow a systematic proving are not kept, and the access to the geophysical core data (PS, GR, permeability, porosity etc.) is extremely limited (information fromROMGAZ - Medias and Tg. Mures). A separate study of these datawould be necessary.
In the expl oration stage, each geological unit must be examined and assessed separately because their geological (stratigraphic, sediment-related, organogenic, tectonic) characteristics are very different, they present different natural gas preservation and discharge conditions, requiring different exploitation technologies.
The assessment of the reserves of shale gas can be made only after conducting exploration drillings which will establish, with a 3D approach, the geometry (architecture) of the rock bodies, their thickness, their lateral extent, the lithological homogeneity, and the formation permeability in its entirety.
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3. SPECIFIC TOOLS, TECHNIQUES AND TECHNOLOGIES FOR DRILLING, COMPLETION AND OPERATION OF THE WELLS FOR UNCONVENTIONAL GAS FORMATIONS
The current global volume of unconventional gas resources exceeds 32,560 tcf (trillion cubic feet) and there is no doubt that, as specific technologies progress, these estimates will be revised (positively). Of these, 16,112 tcf are shale gases. The specificity of these deposits is that the gas is absorbed into the clay matrix, stationed in the vacuolar system or in the schist rock fractures and spans relatively large areas, in approximately horizontal planes. This specificity requires, for their mining, avery large contact interface between the well and the deposit. Currently, for the recovery of shale gas, horizontal drilling combined with hydraulic fracturing are frequently used. It mainly involves Extended Reach Drilling (ERD) with horizontal boreholes in therange of the thousands of metres. There are currently several modern orientation technologies that can address these issues: geosteering, Automation Technology for Directional Drilling, Rotary Steerable System, Reel Well Drilling - which use bottom engines and Measurement While Drilling (MWD) devices. In our country horizontal wells havebeen drilled since 1995, starting with Clejani well 1. Direct ional and horizont al wells were made by S. C. Foraj Sonde Tg. Mure. . Thus, in the period 2008 - 2012, the company made a number of 34 such wells. For thewells with high gradients and for horizontal wells, the load on the auger is reduced due to the friction between the rig and the bottom wall of the borehole (in this case, a part of the drill collars is supported on the bottom wall of the borehole, so that only part of their weight is conveyed to the auger). With such wells, thedrilling strings are under extremely high tensile and compression, torsion, bending, cyclical (fatigue) stresses. For their construction, special drillpipes are used (with thick walls, highly resistant alloys, with double-shoulder joints etc.), pipes designed for Compressive Service operations, dual drill string (if the Reelwell method is used) etc. The drilling fluids used for these wells must meet specific requirements such as: The focus is mainly on very lightweight and lightweight fluids, such as: prevent the strata blocking phenomena, debris removal from very long horizontal areas, for low fracture gradients, probe wall stability over very long periods, avoiding that thedrilling bit or casings remain trapped, etc. The focus is on very light solutions such as gases, foams, inhibitive solutions (clear solutions), very small filtrate fluids, fragile gel fluids, synthetic-oil based fluids, etc. At thesame time, these wells require great safety in the vertical portion development in order to avoid the contamination of drinking water strata and to prevent any environmental problems while continuing to develop and operate the wells. Special measures should be taken for the completion of the curved, inclined and horizontal well development and equipment programme. These steps are mainly aimed at the prevention of the stability loss of the wall in the intervals to be reinforced, the prevention of the problems of the insertion of casings in curved portions, due to their rigidity and length; the prevention of the casing strings from becoming stuck in very inclined and horizontal intervals; ensuring a successful cementing by centering the columns, using buffer fluids, and volumes and rates of grout that are appropriate, respectively; using grout recipes that ensure the production of cement stones resistant to production operations and subsequent operation of the wells. The first string, the anchoring string (that is always vertical) shall be cased and cemented throughout. It must insulatetheunconsolidated geological formationsand isolate, in particular, groundwaters. Thenext step is the execution of the casing and cementing of theintermediate string. Depending on the deposit conditions, on the technical equipment and on the stimulation, this string can be excluded, proceeding to the casing and cementing of the production casing. If possible, depending on the degree of compaction and on the composition of the rocks included in the productive layer, we can have, on the horizontal portion, an open borehole. Of course, in this case, thereis no contamination of the productivelayer with slurry, and the shalegas exploitation operations shall be optimised. The monitoring of the well path is based, on the one hand, on the use of high-performance electronic detection modules in the MWD and LWD systems, and on the other, on a high capacity of processing data collected from the well at the surface (facies, temperatures, pressures, fluid nature, etc.) in order to determine the position of the bit, to keep or change the path, etc. It is based primarily on the completion of the prevention installation with rotating seals, and of the branch with control systems of the output pressure of the gases and of the circulation of the fluid i n a closed-loop, pressurised system. This system allows for balance drilling technology with the purpose to mainly avoid blocking the carrier beds, or carrying out controlled pressure drilling (dual gradient with continuous movement with microflow) with the purpose of providing development programmes with a lower number of casing strings, as well as for the completely safe well development. To safely achieve these complex wells requires the use of powerful ri gs, intensely monitored. Moreover, they must be equipped with high performance manoeuvring devices to reduce the time needed for various operations, such as marches or inserting strings. In this regard we can mention the top driver systems, the automatic casing tongs, the drilling monitoring booths etc. NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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In order to achieve the well which will then be completed for the mining of the shale gas deposits, a drilling machine which does not differ, in principle, from the equipment used for oil drilling in conventional formations shall be used. However, taking into account the increased costs necessary to carry out all the operations which are necessary for the mining of the shale gas deposits, compared with conventional oil deposits, and the fact that the operations take longer to perform, we need high-performance, reliable drilling rigs, with a high level of automation of the running operations, which can achieve a high drilling speed, without high technological and technical risks, so as to avoid technical, technological, and of course environmental accidents. The drilling activities require a permanent consumption of large quantities of industrial water, required to carry out the drilling activities. Among those we would like to mention: the preparation and conditioning of the drilling fluid; the preparation of grouts; maintaining and cooling the drilling equipment, washing the derrick floor, etc.; the intangible fire fighting reserve; the hydraulic fracturing of the wells. In the case of wells whose start-up uses the hydraulic fracturing method (for example, the unconventional gas resources recovery) the quantities of water are notably higher than those used in the traditional drilling. The water resources that can be used in the drilling activities can come from surfaceand/or ground waters. In thecase of drillings conducted for the recovery of unconventional gas, in addition to the water requirement calculated in a similar way with that of wells drilled for the natural gas recovery, the water required for hydraulic fracturing must also be taken into account. While in the first case the quantity of water used is relatively low (on the basis of the development schedule of the well provided in the drilling project - the quantities of water may be in the range of hundreds or thousands of m3), in the case of hydraulic fracturing wells thewater consumption may be of 15 000 30 000 m3. The whole stimulation process implies a design that should provide the completion of the operations in real time, the selection of the most appropriate fluids and fracture proppants, the use of such additive chemical substances compatible with the productive formations. Obtaining commercial productions from shale depends on the detailed structure of the matrix and of the fracture systems. The fracture network is characterised by a number of indicators such as the angle, the azimuth, the length, width and maximum opening. Based on them, the statistical network distribution is made after which the productive characteristic of the deposit can be modelled. One of the main difficulties is the separation of the effect of pre-existent fractures from those induced artificially. However, the optimal orientation of the fractures is mainly in the direction of the minimum effort and/or in the transverse direction, in relation to the system of primary fractures. The issue can sometimes be more complicated because of the possible complex fracture geometries. The fracture development can be monitored and then guided by microseismic monitoring. The 2D or 3D representations of the induced microseismic events can be used to locate and size the fracture network in space. The methods used in situ for the determination of the fracturing degree into the rock massifs can be direct (RQD, integral logging, well TV) or indirect (Lugeon test, instantaneous drilling logging, sei smic logging, acoustic attenuation logging, acoustic well television and the spontaneous potential logging). The concerns of specialistsin recent years aimed at finding technological solutions to stimulate compact formations bearing shale gas to reduce the "classical" drawbacks: diminishing the size of the hydraulic fracturing operations, implementation of fracturing fluids other than water, investigating and monitoring the integrity of casings and of their cementing; real-time monitoring of the initiation and propagation of artificial fracture systems; replacement of hydraulic fracturing with other well completion and stimulation methods. As alternative stimulation methods, we can mention: controlled pulse fracturing; the Super Fracking system - Schlumberger; the Rapid Frack system Halliburton; the slot drilling system; LPG gel fracturing. The monitoring methods can be implemented in real time and are used to monitor and optimize stimulation operations. The collected data analysis methods must ensure the understanding of the sizes of the rock volume subjected to stimulation and the fluid flowing properties. An important preparation consists of using this data to calibrate stress-strain type models. The main techniques for real time monitoring and adjustment of the initiation and propagation of the artificial fracturing systems arerelated to the selective dynamic jet orientation fracturing process (hydrofrack, Surgy Frack) and to the real time monitoring of the hydraulic fracturing by recording seismic microwaves. The main conclusions fromthe microseismic monitoring operations by microseismic recording areas follows: overall, vertical fractures are created within the area defined for the clay shales of the Marcellus shale structure, but there are some cases where they slightly exceed the upper limit of the formation; in general, the fractures extend up to 150 laterally and cross theneighbouring horizontal wells; the fracture is uneven in the first part of the operation as reflected by thechanges in the number of microseismic events; the anomalies observed in pumping pressure values indicatetheexistence of "swarms", natural fracturesaround artificially induced fractures, confirmed by the production data of these areas; the analysis of the pressure data and of the tracer investigations indicate some communication between fractures and between neighbouring wells; the stimulated deposit volume provides good coverage, although it cannot distinguish between the acoustic signals of the fractures filled with supporting agent and NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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the surrounding areas. The problem should be elucidated during the deposit simulation phase and based on the production data. The fracking operation requires several types of units/equipment that performs different functions. We would like to mention the most important ones: fluid transport units) (water, chemical additives) to the hydraulic fracturing location; fluid storage tanks; transport units for the fracturing support material (quartz sand)/ bulk transport units from the silos to the hydraulic fracturing location; transfer units; transfer lines, low-pressure pipes for transferring the fluid from the storage tank to the working tank, with the transfer units; work tanks; pressurizing units, with mixer and high flow rate and low pressure pumps (centrifugal pumps), for the transportation of the fracking fluid from the work tanks to themanifold; low pressure lines, for pumping the hydraulic fracturing fluid to the manifold (low pressure) through the pressurising units; themanifold unit, low pressure, which feeds the hydraulic fracturing aggregate (with low pressure pumps) and which pump (high pressure) the fracking fluid (high pressure pumps); hydraulic fracturing equipment; high pressure lines for the transport of fluid from the manifold unit to the drilling bit; high pressure discharge line; back-side pump and holding it in the annular space during the fracturing operation, prevention of casing breakage; control center; vacuum trucks. Hydraulic cementing and fracturing unitslikeACF 700, 2 AC 800, ACFA 1000 and ACFA 1422, with a maximum pressure of 700 bar, 800 bar, 1000 bar and 1422 bar, respectively, have been built so far in Romania. The hydraulic fracturing operations for shale gas deposits need a pressure with values above 1 000 bar. Hydraulic fracturing in Romania, in order to increase the productivity of the wells recovering deposits present in low- permeability geologic formations (sandstones, marl/sandy clay, etc.), has been used for 40 years, and hundreds of such operations have been performed successfully. A suggestive hydraulic fracturing example is the one performed at well X, with neutral proppant type WGA-20 and a Carbo-lite20/40 Mesh. Optiprop G2 16/30 Mesh supporting material. . We believe, however, that the decision to transition to the commercial exploitation of the shale gas deposits i s to reach its climax onl y after several years of research, experimentati on, data collecti on etc. In this regard we propose, below, a five-phase scheme for shale gas mining (the first two are almost completed). The first phase, which lasts for 1-3 years, is the identification of shale gas resources; The second phase, which lasts for 1-3 years, is the phase of the preliminary evaluation, that includes the assessment of the extent of the area of shale gas accumulation; The third phase is that of thepilot project drilling; The fourth phase is theproduction pilot-testing; The fifth phase, and last, is the commercial operation. It consists of making a decision to go from deposit mining and obtaining the governmental approvals for the building of gas stations, of the pipes and of the well completion. After the entry into service of the first well, with high economic performance, the shale gas discovery report can be prepared, in order to clearly delineate the scope and to preparethe development plan.
4. OIL OPERATIONS ASSOCIATED TO UNCONVENTIONAL GASES AND POTENTIAL ENVIRONMENTAL IMPACT
The discovery and capitalisation of oil resources (crude oil and gas) involves specific activities, known as oil operations, grouped into four phases: exploration, development, production and abandonment. All these complex phases include oil operations which can be pollution sources, with specific pollutants, of the various environmental factors. The greatest potential effect on the environment of all petroleum operations carried out throughout the whole concession period is found in the development phase for the following reasons: includes the performance of the largest number of oil operations: dozens of wells are drills and hundreds of hydraulic fracturing operations are carried out over 4-5 years; the area occupied by a location from which 6-10 boreholes are executed (multi pad) is of approx. 3.6 ha and the exploitation of 250 ha is ensured (A.E.A., 2012). From these figures it is found that by multi pad drilling the total area occupied at the level of a recovery perimeter is only 1.4%, or 2% at the most, when taking into account the areas occupied by roads, pipelines, etc. a cumulative environmental effect may appear, both in terms of water consumption, traffic, noise, waste management (including recirculated water, resulting from hydraulic fracturing), and in terms of the chemicals used in thefracturing fluid. The assessment of the impact of shalegas related oil operations on the environment is a complex process that requires detailed information about the locations of the wells, the geological, hydrogeological, and tectonic structure, the NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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seismicity of these well location areas, etc., information that is not available until after the completion of the recovery stage. WATER Water requi rements for drilling and hydraulic fracturing In order for the drilling activities to be carried out in good conditions, a permanent consumption of industrial water is required. We would like to mention, among these activities, the ones that areof special significance: the preparation and conditioning of the drilling fluid; the preparation of grouts. In the case of drillings conducted for the recovery of unconventional gas, in addition to the water requirement calculated in a similar way with that of wells drilled for the natural gas recovery (module 3.10.2.), the water required for hydraulic fracturing must also be taken into account. While in the case of the wells dug for the mining of conventional gases the quantity of water used is relatively low (on the basis of the development schedule of the well provided in the drilling project - the quantities of water may bein the range of hundreds or thousands of m3), in the caseof hydraulic fracturing wells the water consumption is of 15 000 30 000 m3. According to a statistical analysis performed on about 400 wells, the typical water consumption is of 25 - 30 m/m for water fracturing (Grieser, 2006) and of about 12 m/m for more recent fracturing, which uses a low viscosity mixture, the distance being thehorizontal path of thedrill bit (Schein, 2004). Obviously, the water consumption per well is proportional to the length of the well, to the number and length of the fractured intervals, etc., and the American literature indicates that a mixture of a well chosen fracturing fluid may reduce water consumption by up to 50%. The water sources used in oil operations are located on the development sites or in their immediate vicinity. Water supply is made either fromsurface water sources or from groundwater sources, or, depending on the technological water needs, from both sources, after obtaining the water management approval from the competent authorities.
Wastewater management The sources of wastewater arising as aresult of the application of the shalegas extraction technology aredifferent, depending on the development phase. Thus, in the exploration phase, when the working platforms and the access roads are executed, wastewater may result from washing operations, by the personnel, from storm water contaminated with building materials (dust, oil residues etc.) and, if concrete is prepared on site, from this activity. In order to avoid any negative impact on the environment factors, the water resulting from washing, as used by the personnel, shall be collected in tanks and disposed of off-site, to a wastewater treatment plant for municipal wastewater. The other types of wastewater shall be discharged on site. For the development phase of the extraction process, thetechnology includes two stages: the drilling stage; the hydraulic fracturing stage. Both stages generate wastewater, with different features and flow rates. Drilling fluids are different in terms of composition, depending on the drilling phase, and on the drilling depth respectively, and also on the geological structureof the site where thewell is located (module 3.4). These additives, used in this particular drilling phase, result in the water exceeding the pH and concentration limits for certain substances provided for in NTPA 002/2002 (Law 188/2002), such as sulphates, chlorides, phosphorus, etc. The wastewater flow rate generated by the drilling fluid depends on many parameters. The existing data included in the literature (Revised Draft Supplemental Generic Environmental Impact Statement 2011 Chapter 5 Natural Gas Development Activities & HighVolume Hydraulic Fracturing /pag.53) indicates that, in order to drill a well at a depth over 3,000 m, with a recovery factor of 40%, a quantity of 6000 7000m 3 of wastewater is generated. Another wastewater sourceis theeffluent resulting fromthewashing and maintenanceof thedrilling rig and of the well's working platform and from the well opening (recirculated water tank, blowout prevention plant). The water resulting fromwashing may contain traces of grease, oil and drilling fluid components. The management system for process water used in the drilling process must be equipped with collecting, storage, and treatment systems for this water. After these procedures, thewastewater is reused in the drilling process. The fluids used in hydraulic fracturing (module 3.10.1) are similar to the drilling fluids, but the additives used and the concentrations thereof are different. All current technologies use hydraulic fracturing fluids consisting of more than 98% water and less than 2% sand and additives (where the additives make up less than 0.5%). There are about 235 known substances used as additives in the fracturing fluid, some of which are harmful, but commonly approx. 30 NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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substances are used in this process. These additives, as components of the fracturing fluid, have multiple roles, some of the most important being the reduction of viscosity, ensuring the surfactant character, maintaining the cracks in the deposit rocks, etc. As a consequence of the errors in the implementation of the hydraulic fracturing technologies or of accidents, there may occur uncontrolled wastewater spills, which can pollute: the underground water-bearing strata, through the fluid that remains in the underground and migrates in different directions. the soil, through the fluid that returns to the surface, in a controlled or uncontrolled manner. The fracturing fluid that returns to the surface represents 10% - 70% of the initial amount used. The fluid resurfacing occurs over time(up to eight weeks), but 60% of thefluid resurfaces in four days, and this amount can be managed; the surface waters, either during the fracturing phase or during the wastewater resurfacing and storage phase. The surfacewater contamination may be due to the following factors: - discharge of the drilling sludge, of the discharge fluid and of the salt fluid from tanks or from the residue tanks; - leaks caused by improper cementing of the wells; - leaks through geological structures, through the cracks or natural or artificial openings. Current practice shows that 20% - 60% of the fracturing fluid is recovered for reuse, although in certain development phases of the shale gas extraction technology, for economic reasons, it is no longer recovered. Another specific issue that can occur only during the operating phase is related to water treatment capacity, given the high wastewater flow rate resulting from an operation that includes several wells. A prescheduled stage- based development of the extraction process is recommended, in order to ensure, through water treatment, areduction of the environmental impact.
Impact forecast Ever since the design phase, the prevention of the pollution risk is taken into account, by applying correct technologies, selected depending on the geological conditions specific to the location chosen for the drilling and hydraulic fracturing works. Special emphasis shall be placed on preventing the pollution risk during the execution phase, taking into account each operation which includes drilling and hydraulic fracturing technology, as well as the support activities (water capture, water transportation and storage, preparation of the drilling and fracturing fluids, the storage thereof before and after use, treatment of the drilling flui d, storage of the cuttings resulting from the drilling activity, treatment and transportation thereof to storage site or to emissaries, etc.). Detailed work procedures shall be developed for all these activities. The protection of groundwater against contamination with drilling fluid components shall be achieved by casing and cementing the borehole crossing the underground aquifers. The protection of surface waters shall be achieved through the appropriate management of the water used in the drilling technology and of the wastewater resulting from this technology. This implies the existence of hydraulic engineering plants with adequate equipment to ensure both its safe circulation, as well as thetreatment of these waters for reuse. The probability of a negative impact caused by wastewater on the environment, including on the surface waters or on the groundwaters, is linked, to a great extent, to the size and scope of the project. Thus, as the number of wells increases, the likelihood of a negative impact on the environment increases as well. In the exploration phase, when the activity is not that extensive, compared to the development of a shale gas extraction project, the likelihood of a negative impact on theenvironment is very small. Subject to the application of the best technologies for the construction of wells, little impact can be expected. If the technologies are not observed, or if less safe technologies are implemented, the impact can be significant, and it can be short-, medium- and long-term. In the case of hydraulic fracturing, a high risk is due to the water flowing back from the well, following the hydraulic fracturing process. The flow back can contain up to 70% of the injected water. The presence of this water in the extraction of unconventional gas requires a management plan for "waste water. Given the current development stage of these technologies, we can expect a mid-level impact. On a scalefrom1 to 10, the impact level would be between 5 and 6 (where level 1 impact =insignificant).
Impact Mitigati on Measures The measures required to mitigate the impact on environmental factors, for each step separately, are: theproper arrangement of well pads; NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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the collection, storage and treatment of rainfall water of water from sanitation facilities, for later use as process water; the use of best practices in the field of drilling and hydraulic fracturing, in order to avoid contamination upon underground crossing of sensitive areas; the use, for drilling and hydraulic fracturing purposes, of fluids containing additives with low toxicity indexes; the proper management, accompanied by strict controls, of the toxic and hazardous substances; the use of a pre-prepared emergency plan, for emergencies that may occur in case of contamination of the surface water and groundwater; the use of a centralised location for the storage of water and fracturing fluids, in the development phase, can thus significantly reduce the risk of pollution of water sources; buil ding dams and ditches to limit the spills of pollutants into surfacewaters. the reuse of water in the hydraulic fracturing process can be one of the solutions to reduce water consumption from natural sources. Also, the use of water from other technological processes (mining, water treatment plants, etc.) can lead to significant savings in what concerns water use; in the prevention and control of water source pollution, special emphasis should be placed on installing surface water and groundwater quality monitoring systems. Water management monitoring involves preparing detailed projects, based on hydrological, hydrogeological and hydrochemical studies, for the area in which the drilling and extraction activities are to be carried out. The projects on which the monitoring system is based should be carried out before starting the exploration works, and monitoring shall continue throughout the four main stages of the capitalisation of unconventional gas deposits, as well as for acertain time period after abandonment. The post-abandonment monitoring time shall be determined during the design activity; the implementation of an integrated management programme for water, drilling fluids and hydraulic fracturing fluid that provides for themitigation of thewater sources pollution risk.
AIR Impact forecast Expl oration At this stage, the impact can be characterised as similar to that of any construction - assembly activity. The main source of pollution at this stage is a mobile one, i.e. thecombustion engines of machinery and transport vehicles. In the exploration phase, when the activity is not that extensive, compared to the development of a shale gas extraction project, the likelihood of a negative impact on theenvironment, including on the air, is very small. In the current development stage of these technologies, we can forecast amedium level impact of 3 - 4, on a scale from 1 to 10, in the short term. Devel opment and producti on In the well drilling phase, the impact is similar to that recorded for conventional drilling. The shale gas operations include hydraulic fracturing, as well as the collection, purification and storage of gas deposits. The development of several projects in the field led, over time, in the hydraulic fracturing technology, and in the technologies used for the collection, purification and storage of gases, to great improvements. These improvements occurred as a result of the intervention by the environmental authorities, that conditioned the development of projects upon the risk level associated with the environmental impact. In the current development stage of these technologies, we can forecast a medium level impact of 5 - 6 on a scale from 1 to 10 (level 1 impact =insignificant). Impact Mitigati on Measures The measures required to mitigate the impact on the environmental factors - air, for each step separately, are: the drilling of each well is executed according to the "Technical Drilling Project", also aimed at eliminating the risk of air pollution; the use of best practices in the field of drilling and hydraulic fracturing, in order to avoid contamination with methane gas when crossing sensitive underground areas; the use, for internal combustion engines, of quality fuel, and the operation of the engines in conditions ensuring high energy efficiency; the use, for internal combustion engines, of catalytic filters in order to reduce air pollution; the development of air quality plans in linewith the national and European plans, plans that must be NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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included in the investment project; the recovery of gases from wastewater and from the well head and the neutralisation thereof using different technical methods; the use of pre-prepared intervention plans, for emergencies that may occur in case of air contamination, at any stage of the investment project; the effective management of the drilling waste and slurries resulting from wastewater treatment, so that they do not constitute stationary sources of air pollution; the continuous monitoring of both the technical operation parameters, in each stage of development, and of the air, as environmental factor.
SOIL AND SUBSOIL Expl oration The risk of pollution is similar to the risks of any mining or oil operation. However, the risk of soil and subsoil pollution in the case of shale gas extraction may be considered somewhat higher, up to moderate, due to the volume and complexity of theplant required for extractions, and due to the relatively large areas that the facilities required for multipleextraction drilling may require (about 3 ha). Impact Mitigation Measures: theidentification of sensitive areas which may be affected by the entire shale gas extraction project; the acquisition of seismic data with minimal impact on thesoil and subsoil. In the site preparation phase, the foundation soil must have the geotechnical stability needed to safely support the plant and the related facilities (the need for ageotechnical study). The following shall be avoided, for the site: positioning in seismic zones or in areas with tectonic activity; areas where landslides may occur; karst areas or areas with cracked rocks; floodplains or areas subject to flooding. Devel opment The potential soil and subsoil pollution impact is given, in the development stage, by: drilling wells: materials used for execution, consolidation, sealing works; drilling fluids; cuttings resulting from the drilling operations; land subsidence, road subsi dence, use and propagation of chemicals, oil products used as lubricants and/or fuel, free blowout etc.; drills included in the production process: drill fluid leaks into the environment, drill gas emissions, light products, CO 2 , H 2 S, aromatic hydrocarbons, which are released into the atmosphere; spreading on the soil of slurries and / or of substances and materials used for stimulation and injection operations, sand consolidation, hydraulic fracturing etc. injection drills: the injection agent (wastewater, gas) infests the soil surface and / or penetrates the deeper layers due to column breaking or through cracks in the sewage network etc.; pipes: corrosion, cracking, breaking, mechanical deformation (due to the action of bulldozers and excavators, landslides and erosion, earthquakes, effects of extreme weather conditions) etc.; leakage of chemical additives of the components of fracturing fluids transported in tank cars and undergoing mixing; The impact mitigation measures areas follows: continuous observation and technological control of the extraction plants, of the transportation and storage facilities, and taking measures to avoid any leaks/emissions in the environment; detection and remedy of cracks and other leaks in pipelines, dynamic and static equipment, through periodic checks and inspections; fighting the effects of corrosion, wear and abrasion of depth and surface facilities and of fluid transportation pipelines; the removal of the vegetation and topsoil shall not be excessive; it shall be restored later, by spreading it. Other pollution sources having impact on thesoil: Liquid waste: indirect emissions of chemicals by evaporation, from wastewater tanks and deposited on the soil surface; Solid waste: - Drilling mud and debris. While the drilling technology for unconventional resources is similar NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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to that of the production wells for conventional resources, the quantities of drilling mud and solid waste are higher by approx. 40% in the case of horizontal drilling (DEC, 2011). For example, a single horizontal drilling with a length of 1,200 m, at a depth of 2,100 m, produces about 170 cubic metres of mud and debris. The drilling mud and solid waste produced by the drilling of production wells are considered non-hazardous industrial waste and can be transported to a solid waste landfill. - The polyethylene waterproofing geomembranes for the water storage tanks, for hydraulic fracturing. They can also be stored in solid waste landfills after the hydraulic fracturing process. Impact mitigation measures: using drilling technologies and techniques minimising theamount of debris dislodged and the areas set aside, coupled with the careful control of the management of the sizeable quantities of rock excavated and sometimes contaminated; Impact of heavy traffic. It is apparent both in the exploration phase, but especially in the development phase when the traffic intensity reaches its peak (about 500 drives for a single well) for a period of 3- 5 months (A.E.A., 2012). The impact of this activity on the environment is significant, especially if the site is located near residential or rural areas. Impact Mitigation Measures: given the intensity of the vehicletransportation activities and thesize of the trucks involved, limiting the use of vehicles and the number of drives to the required minimum, as well as their loads and speeds; we recommend light vehicles, with low gas emissions and reduced fuel consumption, using especially diesel fuel; optimisation of the extraction activities, with auxiliary activities (transportation of gas, of drilling fluids, etc.) by mainly using theexisting roads, theconcreteplatforms, secured against leaking.
Operation and preservati on The impact on soil and subsoil is not relevant in theproduction and abandonment phases unless long-term (accidental) migration to the surface of the fracturing fluids occurs.
NOISE AND VIBRATION The main sources of noise and vibration are the means of transport, the drilling operations and the related equipment, as well as the compressor unit. In the exploration phase, the main sources of noise and vibration are the drilling operations and the related equipment, as well as the means of transport. In the development phase, the noise sources are represented by the engines of the drilling rigs and used for the handling of drill pipes, generators, welding generators, utility vehicles and means of transport related to the well. In addition, noise and vibration also occur during the execution and laying of pipes and main pipelines, of the equipment and utilities necessary for the extraction, processing, storage and transportation of hydrocarbons. It is expected that, for both the exploration and the development phases, most noise and vibration sources are temporary (a few tens of days) and some will only work 2... 10 hours/day, except for drilling rigs. Conclusions regardi ng the impact of noise Noise and vibration are normal emissions related to drilling activities, but most are temporary, with short term effects; several effectiveprotective measures can be taken in order to prevent negative impacts on the environment and on the works. For the protection of the personnel working in the vicinity of equipment that generates high levels of noise and vibration, thefollowing are recommended: wearing noise cancelling earmuffs; providing the equipment with enclosures made of sound-absorbing materials; use of other specific protectiveequipment (gloves, palm protections, boots, etc.). The effects of noise and vibration are felt only by the personnel involved in thetechnological process (a small number of workers). The location of thewells in unpopulated areas, at adistance fromthe protected receptors, substantiates theopinion according to which noise and vibration arenot a significant potential source of pollution.
SEISMIC ACTIVITY Seismic prospecting is the most commonly used geophysical method in oil exploration, based on thegeneration of elastic waves that propagatein the subsoil, their reflections to the surface being thereafter recorded. NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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The generation of elastic waves is made either by controlled detonation of small explosive loads (kilograms) in wells with a depth of a few tens of meters, or by the controlled vibration, by a hydraulic system, of an airborne metal plate, along theseismic profiles, and in this phase the seismic risk is practically non-existent. The injection or casting of liquid waste (deposit waters, chemical or radioactive waste) in the ground is one method of underground storage. It was shown that such operations, consisting of the injection of large quantities of liquid in the ground may be acause of someearthquakes. One of the most documented cases is that of the earthquakes occurring in the Rocky Mountain Arsenal near Denver, Colorado. Here, chemically contaminated water from a military arsenal were injected for storage into a deep drilling, at a depth of approximately 4,000 m, whose base consisted of fractured gneiss. Injection began in March 1962, and the earthquakes began to appear after a few months and then continued at a rate of 4-85 earthquakes per month. The amount of liquid injected averaged 16 million litres per month, for a year and a half. The injections were then interrupted for one year and then resumed, however they were eventually discontinued by the end of 1965, after making the correlation between the injection of liquid and the increased seismic activity. The strongest earthquakes had a magnitude of 3.0 to 4.0 on the Richter scale, some even exceeding a magnitude of 5.0. The elongation of the epicentres areasuggests an arrangement parallel to one or two fault lineplanes. In the case of the hydraulic fracturing activity, injecting fluids into productive geological formations has other coordinates: the injection pressures and depths are comparable, but the quantities of liquid injected is lower (1.1 to 2.1 million litres per fracturing stage, i.e. 9.0 - 29.0 million litres for the whole multi-stage fracturing operation in a single drilling, compared with 16 million litres per month for a year and a half in Denver, i.e. approx. 288 million litres), and the fracturing injection is executed on a smaller surface (hundreds of metres) and over short periods of time (hours), and as such the seismic activity induced by these processes is generally low, and theseismic risk is low. Thereare two types of seismic events associated with hydraulic fracturing (AEA/ED57281/Issue Number 17). The first is the direct result of hydraulic fracturing and its scale is microseismic. This induced seismic activity requires very sensitive measuring equipment, positioned close to the fracturing area, in order to obtain a recording thereof. It is usually not felt aboveground. The moment magnitudes recorded varied between -4.0 and -1.0, the hiher being -0.5 on the Richter scale (SPE 152596 ). The second typeof seismic event may occur when the injection and hydraulic fracturing occur near geological fault lines. The larger the fault line, thegreater theseismic effects. Such a case was recorded at Blackpool (in theUnited Kingdom), where a magnitude M =2.3 recorded in April-May 2011 was attributed to the reactivation of a fault line. It should be noted that a magnitude of max. 3 is equivalent to the vibration produced by a truck (OGP, 2012). It is the only event of its kind recorded in the last 1,000 fracturing wells executed from 2005 to present time. Also, if we refer to the injection of fluids in general, approximately 140,000 drilling operations were executed for the storage of liquid waste in recent decades, and there were no incidents (Zoback, 2012) It can be said that injecting fluids, associated with hydraulic fracturing, is not responsible for producing earthquakes affecting to some extent the environment or human activities (the magnitudes of the induced "earthquakes" are in the negative, close to the detectability limit, by seismic monitoring). The explanation is that the increased injection pressure during hydraulic fracturing affects limited volumes (extensions of several hundred metres), and pressurisation takes only a limited time, afew hours, generally. Low magnitude earthquakes associated with hydraulic fracturing (i.e. the one at Blackpool, with a magnitude of 2.3) are very rare, occurring only in connection with pre- existing fault lines. Greater attention should be paid to possible associated seismic activity associated to the development phase after the hydraulic fracturing operation, if wastewater is reinjected as liquid waste into special injection wells. There is a three-pronged approach that can be used to reduce the likelihood of seismic activity when injecting fluids (Zoback, 2012): o Avoid injections into active fault lines. The 3-D seismic methods allow the identification of major fault lines, having the potential to generate significant induced earthquakes (M>6) by activation or reactivation. This identification of the major fault lines is actually included in the geological surveys of thesite. The possibility to activate these fault lines may be influenced by the orientation of the fault lines depending on the regional tectonic stress field. Smaller fault lines are more difficult to detect, but their effects can materialise only through local earthquakes of low intensity. o Minimising deep pore pressure change. Issues appear in the case of the storage, by injection into deep water-bearing formations, of the wastewater resulting from the hydraulic fracturing process, an activity which can influenceseismic activity. One of the methods consists of minimising the volume of injected fluid, which is about 25-50% of the wastewater returning to the surface. This can be done mainly through recycling of this water and reusing it in hydraulic fracturing processes. NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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Another method consists of the injection of wastewater into the aquifer formation from which it was extracted, if the water source used for hydraulic fracturing was a deep aquifer or deposit water, or water contained in poorly cemented sandstone formations, with high permeability. Such formations undergo plastic deformation and do not contain elastic deformation energy, which could be released in the formof earthquakes. o Setting up local 3-D seismic monitoring networks. These networks, installed in the vicinity of the injection wells, allow for the precise pinpointing of possible seismic events produced by water injection, as well as of the orientation of the fault line(s) responsible for the earthquakes. o Establishing, in advance, the operations protocol, depending on the evolution of the seismic activity. The reduction of the rate at which the water is injected might be required, or the operation must be stopped altogether (particularly in the early stages of tube drilling and injection of fluids or hydraulic fracturing) in the event of significant seismic events. In the system proposed by the Durham University (Davis, R. et al., 2012), in the case of induced magnitudes of M <1.7, the activity is continuously monitored until no seismic event is recorded for at least 2 days. o Abandoning injection into boreholes, in some cases. In case of induced earthquakes having a magnitude of M>1.7, the pressure is reduced and the site is monitored for 10 days, and then the project is abandoned, if the seismic events do not stop (Davis, R. et al., 2012). In conclusion, the seismic risk caused by the injection of wastewater is very low. In addition, the risk can be minimised by the study and proper planning, in advance, of the operations, by seismic monitoring and by the early establishment of measures required to eliminate therisk, in the event of earthquakes.
RADIOACTIVITY Natural radioactivity (NORM) consists in the emission of radiation by the nuclei of elements that are found naturally in the environment. These elements are found in relatively small amounts in the environment (water, soil, gas/air), concentrations varying widely from one area to another, and they may be mobilised during drilling and hydraulic fracturing. The possibility that injected fracturing fluids reach underground water sources is low when the distance between the water sourceand the production area isof morethan 600 m. However, theserious potential risk of the migration of injected fluids (which can mobilise various subsoil components as well) should be seriously considered, as well the development of hydrological connections between deep strata and surface formations. If the distance mentioned above between the production area and the water source is smaller, the contamination risk increases. When drilling through geological formations with high radioactivity, the waste produced by the drilling process may contain Ra and Rn radionuclides. Radon, being a gas, is dispersed into the atmosphere, while process water and mud containing radioactive elements are collected, as appropriate, in pits and evaporation ponds. Workers are at the highest risk of exposure to these radiation sources (EPA, 2012). The protective equipment used, on which various materials are deposited (mud, etc.) may be contaminated, as well as the soil's surface, which raises issues related to waste management, as the extraction process concentrates the natural radionuclides in this waste. Depending on legislation, the waste can be stored in different landfills, taking into account , first of all, the concentration of radionuclides present. Thus, as appropriate, the monitoring of the operating phaseof waste disposal may be necessary, and proper handling and storage is not a risk to the population. A preliminary management plan adapted to the local situation should be prepared, to ensure proper storage of radioactivewaste with high radioactive content, as well as a decontamination plan, if there are leaks or spills (ASTSWMO, 2012).
BIODIVERSITY Oil operations associated to unconventional gases carried out during various phases (exploration, development, production, abandonment) may affect biodiversity due to habitat fragmentation (construction of roads, aboveground pipelines, enclosures, drilling platforms), damages to the vegetation, excessivewater consumption, high noise level due to vehicle traffic and drilling operations, etc. (AEA, 2012). Although biodiversity and vegetation is affected in areas reduced in size, impact mitigation and biodiversity preservation measures must be taken (proper planning of works, minimisation of the areas affected, use of the existing infrastructure - roads, bridges -, limiting the use of vehicles and the number of drives to the required minimum, etc.). Special attention should be given to protected natural areas, where, besides the assessment of the environmental impact, an appropriate assessment is mandatory, according to Art. 28 of GEO 57/2007, as amended and supplemented.
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SOCIAL AND ECONOMIC ENVIRONMENT Shale gas provides reliable and affordable energy, while also providing opportunities for local development and creating new jobs for the residents of the areas in which deposits arelocated and mined. The social impact of mining these deposits takes into account theassessment of the effects on thesitearchitecture, with direct influences on the territorial and administrative configuration and of the quality of the lands located in the areas of thewells and of the deposits, the effects on the quality of life and on the health and safety of thepopulation. The social impact forecast and the social impact mitigation measures are assessed in relation to each type of activity, namely: exploration, development, production and abandonment. In the exploration phase, there are anumber of issues relevant to the assessment of the social impact, regarding the use of the lands and of the local infrastructure. At this stage, thediscomfort caused by the movements of the exploration equipment, theincursion of strangers into the local community all generate a feeling of insecurity and fear about the loss of control over the use of property considered to belong to the community, especially land and roads. Population outreach, presenting the benefits of the development of such a project for the community, is a way to mitigate the adverse effects at this stage of implementation. As this stage consists of the actual execution of the wells, there are several aspects worth noting, related to the assessment of the social impact. One of the issue that needs solving is the purchase of lands, for the well installation and subsequent production. Land use may include physical and economic displacement of people, the purchaseof large areas required for the further exploitation of thedeposits. Meanwhile, a question of interest is the use or, if necessary, thecreation of the road infrastructure required for thesafe use of the equipment and auxiliary plant used for the execution of the wells for production purposes. Heavy traffic of transporting equipment and heavy trucks in the area raises the issue of noise pollution and of high levels of exhaust emissions, with direct influence on the quality of life of its residents. Also, the current infrastructure and public facilities in the area may be affected, due to the traffic of heavy machinery and to the increased frequency of trucks transiting the area, used to carry equipment and human resources to and from the wells' location. On the other hand, access to the drilling area also involves the development of the transport infrastructure in the area, leading to improved road connections and logistical support. Last but not least, well drilling for production purposes involves setting aside large areas of land, thus having a direct impact on subsistence agriculture and on means of support. In the production phase, the impact affects the local infrastructure, housing, goods and services by: creating opportunities for new jobs and increasing living standards in the region, creating opportunities to develop and improvelocal services by increasing demand and purchasing power, by increasing cultural diversity, and social and commercial revitalisation. Meanwhile, the mobilisation of qualified human resources from other areas leads to a cultural diversification that increases the risk of conflicts with the locals, and the changes, both generated by the new architecture of the areaas well as indirect changes, through the diversification of services and the increase of the number of personal development, can lead to adverse reactions. These are: resentment, fear of new things or experiences, distrust in the good faith of investors or for foreigners brought to the area for their expertise or to perform technical operations involving a high degree of professionalism and specialisation.
CULTURAL AND ETHNIC CONSIDERATIONS, CULTURAL HERITAGE In each of the four implementation phases of unconventional gas recovery projects, the activities of the investor shall serve to meet an indispensable requirement in order to avoid conflicting situations, or even conflicts with the local population: they will observe local sensitivities and traditions through accurate information, at theunderstanding level of the communities, on the various stages of the works to be undertaken. This will be preceded by a preliminary investigation, with the help of specialists in the sociological and ethnographic fields, to identify these local particularities. An important aspect, in order to avoid any material incongruences, consists of drafting projects so as not to be affect the national and local cultural heritage, following a feasibility study which must include monuments and heritage sites located in theareathat will be affected in the long termby the investment. Thebudgets prepared for theprojects in question must include funds for therestoration and conservation of the heritage sites discovered. We believethat, following the preparatory steps mentioned above, it is extremely important that theresidents of the areas affected by the projects be given the opportunity to express, in referendums, informed opinions on the proposed investments.
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5. ECONOMIC IMPACT OF NON-CLASSICAL GAS RESOURCES RELATED ACTIVITIES IN ROMANIA ON A NATIONAL AND REGIONAL LEVEL
Energy Trilema - Why Are New Primary Energy Sources Requi red The essential element regarding the use of gas from unconventional sources is the potential impact on the security of Romanias supply with primary energy, the increased affordability of energy to theconsumers and the reduction of green house gases emissions. The importance of ensuring a country's energy supply security consists in the impact on economic stability (no healthy economy may exist without the possibility to have uninterrupted energy supply, in the required quantity and having the required quality), social stability (the lack of affordable energy fundamentally impacts the living level, cultural life, health and the development of a people), and even political stability of that country (a country is vulnerable when it depends on a single source of energy coming from outside, which may have a final impact on its political life, and even independence). In many cases, thedependence on energy imports is considered to be a measure of energetic insecurity. However, this should not be generalized, and this matter should be nuanced: the solution is a convenient mix of sources, and the import is not that bad, as long as there are viable physical connections, and commercial accessibility. Due to the fact that the imports depend on the size of a countrys own resources, the energetic strategy should lead to that mix of primary sources which is the most convenient for that country, applying the simple principleof the highest possible diversity. However, if the internal sources may be extended, the problem is essentially simplified, by reducing the need for imports. Consequently, natural gas is essential for the sustainability of any energy sector, and the possibility of discovering new sources i s beneficial both for the proper operation of this sector, and for the purpose of reducing t he environmental impact. In the absence of any new sources of natural gas, in a matter of about 15 years we may end up heavily depending on the natural gas imports. Obviously this situation requires decisive measures to extract new gas resources. In concl usion, taking into consideration the possible participation of thenew natural gas sources to Romanias energy sector, it results that: The energy supply security is critical for Romania, and may be essentially improved by expanding the countrys gas sources and diversifying the interconnections with the neighboring countries. Without the intervention of the new natural gas sources, including shale gas, the dependence upon imports would soon become a burden. The experience of the two winter crises due to the shut down or cut down of the imports of gas is relevant from this point of view. Without any economic gas sources ensured, Romania is unable to meet its commitments resulting from the application of the energy/climate change package. Also, the achievement of the renewable sources utilization target of 24% by the year 2020 depends on the settlement of the issue regarding the balanced operation of the national electricity system, natural gas playing an essential part in the solution to this problem. Essentially, the development of the nonconventional gas recovery in compliance with all environmental requirements may generate critical advantages at the level of the country and of the region.
Promoti ng Soci al and Economi c Benefi ts Oil and gas industries generate significant revenues for the national economy. Sound macroeconomic management and governance are required to ensure that the money generated from these projects is invested in local communities through policies that foster economic development and poverty reduction. Moreover, the knowledge of social and economic impacts both positive and at risk is essential to help the design of sustainable policies that would contribute to bringing long term beneficial activity both on an economic level that includes research and development, as well as on a job creation and social welfare development that increases the buying power and, with it, the safety and stability of the economic environment to thebenefit of business in general. Basi c Resul ts of the Impact Assessment The data we aretaking into consideration stems from various sources such as IEA regarding theevolution of gas consumption; the EU recent studies regarding the nonconventional gas resources and impacts as well as studies on job creation in the gas industry including both direct and indirect ones. We only mention here a recent June 2013 report by US-EIA showing for Romania an evaluated figure of 1.4442Gcm (51Tcf) of shale gas reserves. We are considering the time frame starting in 2011 and ending in 2030. It should be noted that in this period: (i) not all the resources are consumed and (ii) that the extraction will start in 2019 (the previous years are used for NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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exploration activities) with a slow increase given by the limitation of well drilling and operation capabilities (the number of wells per year is limited by a value resulting from technology considerations in recent EU reports). The evolution of thenew gas production is given in the figure below:
Source: authors calculations This quantity of gas is related to the wholegas production as depicted in the following figure:
Source: authors calculations One immediateimpact is thefact that after the year 2023 (in our scenario) Romaniawill have available gas for export. This stems from the fact that the evolution of production has been chosen to match the one of consumption and loses. The growth coefficients are equal to the GDP evolution. Considering themarket prices of gas theexpensefor imported gas that changes to income fromexported gas is represented in the next figure as a percentage of GDP each year. One should note that income from exports, are given as negative (entries) in the economy while theexpensefor exports aregiven as positive percentages of the GDP.
Source: authors calculations The capability of the new gas resources to eliminate imports, at least for a number of years, creates a strong urge to start extraction. Westress hereonce again that in the timeframe considered the quantities of new gas produced are not exhausting the reserves. It is seen that the increase in imports due to (i) depletion of conventional gas and (ii) increase NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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in consumption, that costs close to 1.5% of GDP is changed once the non-conventional gas is coming in. The increase in production may lead to exports that could bring into theeconomy 0.5% of GDP in revenues. Another impact we have evaluated is the oneon the gas price. Thenew gas production was considered to enter the market at the internal gas price (a rather conservative approach since exports were also considered at this value). In the figure that follows the price evolution for the given time period is presented. The increase in price due to increased imported quantities is reversed once the nonconventional gas reaches the market. Our scenario shows a potential decrease in price of about 30% at the end of the period. This decrease is keeping the gas at cost plus enough to include investments, taxes and sizeable profits.
Source: authors calculations One other impact is the creation of jobs: direct and indirect. Various sources give different values of indirect jobs to each direct job created that range from 3 (the most conservative given by US gas industry data to 5 the least conservative). We havetaken very conservatively thelowest value of 3 indirect jobs per 1 direct one.Thetotal number of jobs resulted in 4517 direct and 13552 indirect ones at thenational level thus a total of 18069jobs. The taxes on jobs were assessed, as well as the sizeof the tax on profit. Theresults are presented in thefigure below:
Source: authors calculations An assessment done in each region of the specific parameters associated to socio-economic impacts related both to positive effects result in a division of the direct jobs (based on the ratio 3 in Vaslui, 1 in Constanta regions being proportional to therespective surfaces of theperimeters in each county). Thus, the direct number of jobs created at local level is given in the next figure. The figures range in about 4800 for the direct jobs and 14400 for the indirect ones giving a total of 19200 jobs in all. Obviously the above figures are based on a very conservative value of indirect jobs creation per direct job (i.e. 3), various studies go as far as 5 for this ratio.
Source: authors calculations NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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1. LEGAL FRAMEWORK APPLICABLE TO THE CAPITALISATION OF NATURAL GAS RESOURCES FROM UNCONVENTIONAL DEPOSITS
The legal framework that defines the conduct of any human activity is nowadays a complex system, comprising fundamental constitutional rules, detailed in the primary legislation, which in turn are explained in the secondary legislation, like orders, decisions, regulations, instructions, codes of good practice, etc.., designed as a whole to ensure the smooth running of thehuman society. The oil field, including theunconventional resources sub-domain, is no exception. The comprehensive report and its abstract analyses issues related to the oil and environmental legislation, how it harmonises with the European legislation, the regulations applicable to the oil field in Romania, examples of regulations in countries that havemade significant progresses in harnessing non-conventional resources and proposals for the completion of the regulatory framework applicable to our country. The main principles underlying the Petroleum Law no. 238/2004, which contains provisions applicable to the "up- stream field, on the exploration, development, exploitation, abandonment of reservoirs and transportation of crude oil and natural gas through the national supply systemare: the scope of application includes all oil resources existing in theunderground of the country, present as a gas or liqui d, and makes no distinction according to their generation, geological and petro-physical characteristics of the collecting rocks, type of deposit or mining technology, thus their classification as resources from conventional or unconventional deposits; the recovery of crude oil and natural gas resources is performed through concessions, based on petroleum agreements of thetax royalty type, concluded with theNational Agency for Mineral Resources, established by law as thecompetent authority, which shall enter into forceafter their approval by Government Decision; the duration of the petroleum agreements is 30 years, extendable by another 15 years; In addition to the general principlesof recovery of oil resources, thelevel of the royalties, theholders rights and obligations, the primary oil legislation establishes two important principles: the non-discriminatory treatment applied to the owners and the stability of the contract terms.
By the adoption of the Petroleum Law no. 238/2004, the Romanian legislation in the oil field has become compatible with the European legislation, represented by the "Hydrocarbons Licensing Directive" (94/22/EC), which aimsto ensure non-discriminatory access to the activities of prospecting, exploration and mining of hydrocarbons. A first conclusion is that in Romania, at the level of the European Union and its Member States and also in other countries with a tradition in the field of mining of hydrocarbons, the primary oil legislation is applicable to all types of hydrocarbons, regardless of the conventional or unconventional nature of the fields or the adopted production technology. The secondary legislation is the result of the interaction between the primary petroleum legislation, which deals with major issues generally applicable to theoil field and theparticularities of a certain activity, such as the exploration and mining of resources from unconventional fields, which require a separate, moredetailed approach. The regulations are meant to create an ideal framework for the oil-industry operations of exploration and recovery of unconventional natural gas reservoirs, so as to achieve an acceptable combination between the economic advantages and the disadvantages related to the potential hazards that any human activity can imply on the environment and habitat and to reduce potential risks to acceptable levels by increasing the operators' discipline. Regulations are also aimed at raising the confidencelevel of thegeneral public, of the decision makers and media communicators in the safety of applied technologies and procedures. The remark fromthechapter on primary oil legislation, that Romania has no specific provisions for unconventional gases, also stands in terms of regulations and technical guidelines applicable to the exploration and usage of these resources. From the analysis of the regulations currently in force in the field of unconventional gas and shale gas in particular, we find: the regulation of the activities is closely related to the level reached by the exploration and mining activities in different countries, states or provinces of unconventional gases, theUS being a leader from this point of view. The comprehensive report enumerates the issues covered in the field of gas mining in different countries; Romania is no exception to this rule, the activities in this area being in their early stages, as there are virtually no specific regulations for the exploration and mining of unconventional gas deposits; NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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the regulations are applicable locally and take into account the geological, economic and social situation of each area that falls under this regulation, and they are developed based on scientific studies, observations accumulated from regulated activities, and sometimes as a result of unwanted incidents; based on the 150-year experience in the Romanian oil industry and considering worldwide best practices in the field of unconventional gas, we suggest the regulators develop and enforce a set of regulations specific to this field, equally useful to oil companies, policy makers, NGOs and the population. The oil legislation is essential in harnessing the resources from unconventional deposits, but it is not sufficient. When conducting oil operations, the provisions of thelaws on environmental protection, access to land and building permits, access to resources and infrastructure, protection of public health, taxation, etc. are applicable. Since one of the main issues for the recovery of natural gas from unconventional deposits is not highly regarded by a part of the public, who doesn't have, in general, extensive knowledge of the oil field, the CENTGAS comprehensive report includes a review of the applicable laws in this field. Starting from the observation that the European legislation is almost fully harmonised with thenational legislation, the extended form of the CENTGAS report mentions a total of 26 European directives regarding environmental protection, which also have applicability in the field of natural gas from unconventional deposits and specifies the national legislation which transposes them. Proposals for the amendment of the legisl ati ve and regulatory framework Romania's rich experience in the oil field, the performance of hydraulic fracturing and horizontal drilling oil operations for the recovery of conventional hydrocarbons facilitate the development of a set of new regulations meant to establish codes of good practice for the technicians, but also to give confidence to policy makers, local administrations, NGOs and the population that the risks inherent to any human activity are maintained at an acceptable level for the recovery of shale gas, without exceeding the risks related to conventional hydrocarbon mining. The analysis of the primary and secondary legislation applicable in Romania, the EU directives, the comparison with the situation in other countries that have made progresses in terms of the mining of unconventional gases, combined with data from other modules of the study were theelements that led to the following proposals for the amendment of the legislative framework:
Issues related to the environmental legislation It should be decided whether the oil pads offered for concessions are subject to thestrategic environmental assessment process, according to GD 1076/2004 on establishing the environmental assessment procedure for plans and programs. It should be specified which are the oil operations for which the environmental impact assessment is requested and especially thetime when this assessment is required. Amending the legislation with prerequisites that require the holders of petroleum agreements to undertake a study of the initial environmental parameters, which assess the environmental conditions at the start of the petroleumoperations and provide data for comparisons in theassessment of their own works. Imposing rules for the monitoring of environmental parameters, of allowable values relativeto the initial values and establishing periodic intervals and rules for reporting and control. Establishing measures and deadlines for remedying environmental damage and responsibilities of the holders of petroleum agreements. Imposing theobligation to disclose the chemicals contained by the fracturing fluid.
Issues related to water use and waste management As an extremely important component of the drilling activity, both as an environmental factor and as part of the fluids used in thedrilling process, it is necessary to comply with at least the following: preparing a hydrological and hydrogeological study to assess thepotential of basins and water bodies; preparing a study regarding the impact on aquifers, the use of certain volumes and determining the limit volumes that can be recovered without affecting local communities; monitoring network of aquifer formations in the area where drilling works are being carried out for the exploration /mining of unconventional gas; monitoring should be started before the execution of exploration drilling works and will end after a certain period of time (which will be obtained after modelling the flow of groundwater in the area of interest) after the completion of the abandonment stage; the holders' obligation to replacewater sources affected by their own activity; developing rules and procedures on themanagement of solid and liquid wastes.
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Technical regulations for petroleum operations Well location When choosing the location of the wells where oil operations specific to unconventional gas are to be performed, especially high-volume hydraulic fracturing, regulations for the following are deemed necessary: the distance from homes, schools, hospitals, water courses, floodable areas, drinking water supply sources, monuments, roads, electricity networks, piping, etc.; the maximum surface allocated to well locations; the minimum distance to the faults detected by seismic prospecting; the measures to protect the soil against erosion. Building thewells minimum rules for cementing and running casing; the landing depth relative to drinking water aquifers, imposing certain types of steel for columns and certain types of cements; cementing control; type of preventers; checking the columns at a pressure higher than that to which they the shall be used in the fracturing operation; establishing maximum allowable pressures in thefracturing operation; investigating the wells.
The monitoring and control of petroleum operations micro-seismic monitoring of hydraulic fracturing; using wells to monitor the qualitative and quantitative impact on aquifers (number of wells, monitored parameters, frequency of measurements); supervision of hydraulic fracturing operations by experts certified by NAMR, similar to the procedure applied for the well abandonment operations, established by Order of the President of theNARM no. 8/2011; post-abandonment monitoring (duration, parameters, etc.); periodic inspections of the petroleumoperations undertaken by specialists from the responsible authority; monitoring the seismic activity caused by the high-volume hydraulic fracturing activity.
7. CONCLUSIONS AND RECOMMENDATIONS
CONCLUSIONS Considering the decrease in the production of hydrocarbons from theoperational deposits, Romania has to explore and exploit new conventional and particularly unconventional oil and natural gas fields in order to meet the requirements in domestic consumption and maybe an additional quantity for export. The multidisciplinary CENTGAS study shows how geological, technical, environmental impact, economic impact and legislative framework aspects work together to capitalise the gas resources from unconventional deposits and highlights how these fields mutually condition each other in achieving this objective. Following this study and the synthesis of a rich bibliographic material together with the rich experience of the authors in the petroleum industry, the conclusions are as follows (we mention that the comprehensive version of thereport (400 pages) and the summary of the report (100 pages) include much more extensiveconclusions):
Romani as geol ogi cal potential regarding the existence of unconventi onal gas resources
Although the extent of geological research is insufficient so far to determine the unconventional gas reserves, Romanias subsoil is credited with favourable perspectives. In Romania, clay formations having a gas-bearing potential (shale gas) of gas shale type are located in orogen units, in folded structures (which outcrop but also extend to the deep areas of the Oriental Carpathian Mountains), as well as in platform units (from the Carpathian foreland), at depths exceeding 2,500 3,000 m (Moesian Platform Romanian Plain with its extension to Southern Dobrogea, Scythian Platform (Brlad Depression), south of the Moldavian Platform). Moreover, potential conditions of existence are met in the Getic Depression, the Pannonian Depression and the Transylvanian Basin. NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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The results of the analyses show a high potential for the Silurian formations in the Moesian Platform, Scythian Platform and Moldavian Platform. The Oligocene formations in the Oriental Carpathian Mountains and the Getic Depression have an average potential. For the Permian and Jurassic formations in the Southern Carpathian Mountains (Resita-Moldova Nou area), for t he coal measures and Jurassic format ions in the Moesian Platform and for the cretaceous and Miocene formations in the Transylvanian Basin the potential is low. The information available for thePannonian Depression and the Continental Platformof the Black Sea does not allow such assessment. The age of the formations of interest cover a time span from Inferior Palaeozoic (Silurian 425 million years) to Neozoic (Palaeogene 30 million years). The Palaeozoic formations, which are very old, sum up optimum value parameters close to theinternational standards. The thi ckness of the formations is variable (100 2,000 m), and its values are influenced by the tectonic framework, the paleo-relief of the basin during their accumulation and the frequency of the drillings intercepting these formations. Formations thicker than 50 m, with lithological homogeneity, have to be considered for the operational phase. Formations with a good potential are considered to be those with TOC values higher than 2 4%, the values of the vitrinite reflectance Ro:1.5%, with 2 nd 3 rd type kerogen, and which had an ageing temperature higher than 430 o C. Such formations can be explored.
Equi pments, techni ques and technologies speci fi c to oil operati ons for capi talising unconventi onal gas At present, mainly horizontal wells are used together with hydraulic fracturing to exploit natural gas from gas- bearing clays (shale gas). To perform the drilling of horizontal wells, special measures have to be taken in order to carry out the programme of construction and fitting of the wells in general and particularly those in curve, inclined and horizontal intervals. These measures regard the setup of the string of drill pipes, the drilling fluids used, monitoring the routeof thewell, preventing the loss of wall stability in theintervals to be strengthened, preventing specific problems when inserting the pipe strings in the curve sections and preventing them to be caught in the curve, very inclined and horizontal intervals, avoiding the blocking of productive beds and so on. Considering the higher costs for building wells for shale gas exploitation, as compared to the exploitation of conventional gas deposits, as well as the longer duration for performing all operations, modern drilling rigs are needed, i.e. performing and reliable rigs and with ahigh level of automation of the handling and drilling operations, able to reach a high drilling speed, without major operation risks, and it is necessary to prevent and avoid the occurrence of technical, technological and ecological accidents. The activities of well drilling and putting into service need a constant consumption of industrial water, in large quantities, in order to prepare and condition drilling fluids, to prepare cement pastes, to maintain and cool down certain machinery and drilling tools, as an intangible reserve for fires and so on, and especially to perform the multiple operations of hydraulic fracturing of the productive beds by means of thesafest and most efficient methods. To perform the hydraulic fracturing operation several specific units are needed, performing various functions. To perform the hydraulic fracturing for shale gas exploitation wells, pressures higher than 1,000 bar are needed, work that can be performed with cementation, fracturing and additive adding plants made in Romania, ACFA 1000 or ACFA 1422 type. We must point out that an exceedingly high number of straight, directional and even horizontal wells have been drilled in Romania, and thousands of hydraulic fracturing operations have been performed in order to increase the production of oil and gas from conventional deposits, without a major technical, technological or ecological accident. In conclusion, we earnestly statethat Romania has optimum conditionsto drill horizontal wells for shale gas exploitation, together with modern and performing drilling rigs and tools, machinery for hydraulic fracturing, very skilled designers and operators having a rich experience in theoil and gas industry, and complete laws and gui delines in compliance with the European and worldwi de standards on environmental protection and on the protection of thecommunities in theconcerned areas, and so on.
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Impact of unconventi onal gas extracti on on water, ai r, soil and subsoil , bi odi versi ty, heri tage, and soci al - economi c envi ronment, specifying the mi ti gation measures until an insi gni fi cant (minimum, reversi ble or temporary) impact is generated
Water Water supply is made from surface water sources or underground water sources, according to the water needs of the process. The water needed to carry out the activity shall be provided differentially, according to the stage of woks, such as follows: The potential impact of the shale gas extraction activities on water is reduced through the medium of aseries of safety measures, specific to each project stage. The compliance with the design, and the use of modern hydraulic fracturing technologies, and the implementation of the safety measures set will reduce the impact of the shale gas extraction on the environmental factor (surface and underground) water. At the same time, there will be no used water discharges in the environment, and the proposed used water management shall ensure the elimination of the potential sources of water pollution. Ai r The measures required to reduce the impact on theenvironmental factor air, for each work stage, regard mainly the use of thebest practices in drilling and hydraulic fracturing so that pollution with methaneis avoided upon passing through the sensitiveareas in the subsoil. If the volume of works is reduced and a working schedule is established and the working schedules of the machinery within the work site are correlated with the working schedules of the production bases, the permitted maximum values are not expected to be exceeded. The potential impact generated is estimated as insignificant. Soil and subsoil . Seismi ci ty The impact on soil and subsoil can be manifested, particularly in the development stage, by the pollution potential of the drilling activities and of the transportation of fluids through pipes or tanks, by the resulting liquid and solid waste management and by the heavy traffic of machinery. The impact can be prevented or reduced to a minimum by the optimisation and constant control of these activities. The seismic risk determined by unconventional gas exploitation is very low. Moreover, the risk can be minimised by proper study and planning in advance of the operations, seismic monitoring and establishment in advance of the measures required to eliminate the risk in caseof earthquakes. Noise and vi brations Noise and vibrations as normal emissions of thedrilling activities have, generally speaking, a temporary character, and their effects are short-term effects; in order to prevent the negative impact on the works and on the environment, efficient safety measures can be taken. The location of the wells in uninhabited areas, far from the protected receivers, justifies saying that noise and vibrations are not apotentially significant source of pollution. Bi odi versity The impact of the shale gas extraction activities on the biotic component will be of low importance. Thus, the agriculture in a small perimeter is replaced by a provisional industrial activity, and no measures additional to those proposed for water, soil and air protection are necessary. Social and economi c envi ronment The works needed to set up the work platform and access road, with their related infrastructure, will have a positive influence on the life of the community in the area, but at the same timethey may have potential discomfort factors for the population. The works proposed to be carried out, doubled by a series of safety measures, will have a preponderantly positive impact on the population in the area, determining an improvement of both the short- and long-term local and zonal socio-economic situation. Cul tural , ethni c and heritage conditi ons The potential impact forecasted will manifest itself strictly in the area where the works are carried out, for short periods of time. The potential impact is reversible, so that it will be completely eliminated when the works are completed. Possible material incongruities are avoided by developing the projects so that they do not affect the national and local cultural heritage, based on a feasibility study including the heritage monuments and sites in the area to be affected by the envisaged investment.
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Economic and soci al impacts In the scenario taken into consideration, a number of important conclusions have been drawn on the impacts of new gas production related to: (i) import and export evolution based on increased production; (ii) impact in GDP; (iii) impact on the gas market price; (iv) impact on the jobs both direct and indirect at the national level (state budget) and local level. Resuming these results we may statethe following: (i) import and export evolution the increase on the production of unconventional gas being greater than the expected evolution of the internal consumption (given by the evolution of GDP) may lead, at the beginning of the next decade, to the possibility for gas exports from Romania. Obviously, thereare other alternatives to manage the excess gas such as to fill underground deposits for future use. (ii) impact on the GDP at current import prices for gas the impact on the GDP is significant around 1.5%). Considering that the new gas production is substituting imports in the Romanian economy the impact on GDP is continuously decreasing and may even reverse once exports set in to values in the range of 0.5% of GDP. It should be noted that this situation is strongly decreasing the vulnerability of the economy but, on the other hand, it will require an increase of the gas network with a need for more investment required by exports and/or gas storage capacity increase. (iii) Another important result is the significant reduction of the price of gas in the market due to the large quantities of new gas production that are eliminating expensivegas imports. The immediate gas price reduction is about 12% while theoverall reduction for the given timeperiod is expected to be about 33%. Actually, till 2019 theprice will increase since the imports will compensate the reduction of classical internal production of gas and then the new gas production will start decreasing prices. (iv) Impact on the jobs at national level is measured by the tax entries to the state budget (resulting from job taxation) that are reaching substantial values (in thetenth of millions of US$). By comparison the tax on profitsis smaller a result that stresses the importance of job creation in the new gas production. The indirect jobs per each direct job was taken, in a conservative manner, to be at the lower level of 3. Even so the impact on the budget is substantial and the counties where the direct jobs are created are expected to witness local economic activity increase after the gas production is setting in. Dirrect jobs are considered at 2000$/job/month while indirrect ones at 1500$/job/month and the taxes at 50%, which allows to estimate total budgetary revenues of 176.2 M$/year. Wehave not assessed the effects on community development at the level of education, cultural development, or companies founding, that require a moreextended study.
We underline the fact that the sizeable economic and social impacts resulting from the analysis above are just a basic evaluation, done based on conservative assumptions. A model was built that allows simulating various scenarios for a future, analysis as more datawill be comming in from the exploration and exploitation activities.
Legisl ati on appl icable to unconventional gas
The primary oil legislation is perfectly consistent with the European legislation, and it is applicable to all typesof hydrocarbons whatever their generating conditions, their deposit characteristics, their state of aggregation or their exploration and exploitation technologies, or, in other words, their conventional or unconventional character; it imposes the basic rules for capitalising oil resources and sanctions two important principles: thenon-discriminatory treatment applied to the holders and the stability of the contractual terms. The secondary oil legislation represented by technical instructions, regulations, good practice codes, and monitoring and control rules has alacunary character in our country; it is necessary to supplement it with the above-mentioned provisions.
RECOMMENDATIONS
Based on the multidisciplinary analysis of certain geological, technical, economic, environmental protection and legislation aspects having asignificant impact on theexploration and exploitation of unconventional natural gas, the authors of the study recommend the following:
Systemati c geol ogi cal research of Romanias basins wi th an unconventi onal gas potenti al NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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In order to determine the existing resources, by basic research programmes, funded from the national budget, and by leasing theconcerned perimeters to companies able to bear the high costs of geological and geophysical exploration, and by deep-well drilling (3,000 4,000 m); the old formations in the Carpathian foreland, Palaeozoic and particularly Silurian ones, can be of maximum interest. In theexploration stage each geological unit has to be examined and considered separately, because the geologic features (stratigraphic, sedimentologic, organogenetic, and tectonic features) are very different, they present specific conditions of storage and release of the natural gas and, implicitly, require different technologies of exploration and exploitation. The shale gas reserves have to be assessed following the design and drilling of exploration wells establishing, by a 3D approach, the geometry (architecture) of the rock bodies, their thickness, side extension, lithological homogeneity, and permeability of theformation upon the whole. Theresearch for the assessment of the reserves of tight gas (from thePannonian Depression and the Transylvanian Basin), gas-bearing coals (from the Anina Basin and, in the future, from the Dacian Basin), and gas hydrates in the Black Sea must go on. Introducti on and imposing the use of the newest technol ogies and good practi ce rules in unconventional gas drilling and expl oi tation, characterised by a high degree of performance and safety and insi gni fi cant ri sks of produci ng damages to the populati on and the envi ronment Capitalisati on of the techni cal experience exi sting in Romania The training and experience of the specialists involved in drilling activities and of those involved in environmental protection has to be capitalised in Romania as well (not just abroad) in the exploration and exploitation of shale gas by hydraulic fracturing in technically and ecologically safe conditions. Moni toring the quality of the environmental factors In order to carry out thecomplex activities of shale gas extraction it is necessary to prepare and implement a plan for monitoring the quality of the environmental factors, identifying the effects of the rehabilitation works on the environment during the construction period, as well as after completing the works. The plan shall comprise the points to be monitored, the monitored parameters and the monitoring frequency. Interactive and constant consultations with the authorities are needed to completeand materialise themeasures to be implemented and applied (e.g. cessation of works, measures to reduce effects, etc.) for each typeof impact. Devel oping the economi c impact for di fferent scenari os of development of the fiel d of unconventional gas, in order to provi de the politi cal deci sion makers wi th the possi bili ty to choose the optimum strategy for capi talising the resources of the country; Introducing new techni cal regulations regarding well posi tion and construction, monitoring and control of oil operati ons, at the same time wi th the strengthening of the regul atory, moni toring and control operational capacity of the authori ties competent in the fiel d. * The authors of the study believe that the development of anational strategy for medium-term (2013 2020) and long- term (2013 2050) capitalisation of thenatural resources has to take into account the following elements: Romaniahas a favourable geographical position. Romaniahas highly diversified energy resources. The mineral resources are distributed harmoniously, balanced in relation to the big urban and industrial centres and in relation to the infrastructure. Romania has a long tradition (more than 150 years) in the oil industry, and it can be used in capitalising unconventional resources. NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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Because of the early discovery, most oil and natural gas fields are in an advanced stage of exploitation, and the production is at low ebb, but there are premises for the development in depth and in extension of the known accumulations. The existence of some unconventional resources takes shape; their use is possible in the near future if appropriate investments will be made in basic research and exploration. Accessing the restructuring aids for upgrading and endowing the operation with new technology (through EU projects). Developing the national base of mineral resources: through annual programmes of geological research; completion of a centralised databank on classic and unconventional mineral resources. The National Agency for Mineral Resources works on this project. Ensuring the stability of the contractual conditions and granting proper fiscal facilities, based on elaborated analyses of the production costs/oil and natural gas priceratio, with aview to best capitalise the reservesof the country. Using oil and natural gas reserves locally by reactivating the exploitation in fields where production ceased; this may help regional development and the training of thepersonnel needed for these activities.
As a final conclusion, the authors of the CENTGAS report, prepared at the initi ati ve of the Romanian Nati onal Committee of the Worl d Energy Council , think that pointing out Romani as potenti al of gas from unconventional deposi ts, esti mated as si gni fi cant, and proceeding with thei r systematic expl oration and exploi tation are an opportuni ty and a necessi ty of the moment, provi ded modern technol ogies are implemented and an appropri ate regul atory framework reducing potential risks to acceptable values is adopted. NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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APPENDIX A
LIST OF THE AUTHORS OF THE CENTGAS REPORT NATURAL GAS RESOURCES FROM UNCONVENTIONAL DEPOSITS POTENTIAL AND CAPITALISATION Pos. Name Title Institution Position 1 Anastasiu Nicolae Professor, PhD, corresponding member of the Romanian Academy University of Bucharest Emeritus Professor, Adviser and 1 st Degree Senior Researcher 2 Antonescu Niculae Napoleon Engineer, professor, PhD Oil & Gas University of Ploiesti Honorary Rector 3 Avram Lazar Engineer, professor, PhD Oil & Gas University of Ploiesti Director of the Department for Drilling, Extraction and Transportation of Hydrocarbons (FETH) 4 Bandi Stefan Engineer, PhD SIPG Campina (Society of Oil & Gas Engineers) Grigore Ioachim Training Centre Associate Professor 5 Barac Mihai Engineer, PhD, 2 nd degree researcher INCDIF ISPIF Bucharest (National Institute for Land Improvement Research & Development) Adviser 6 Batistatu Mihail Valentin Engineer, PhD Oil & Gas University of Ploiesti Associate Professor 7 Branzila Mihai PhD in geology Al. I. Cuza University of I asi Professor 8 Buliga Gheorghe Engineer, PhD SIPG Association Chairman 9 Chera Constantin Archaeologist, PhD Museum for National History And Archaeology Archaeologist 10 Ciocaniu Stefan Engineer, PhD in Mining and Oil & Gas S.C. GEO TOTAL S.R.L Administrator 11 Coloja Mihai Pascu Professor Oil & Gas University of Ploiesti Rector 12 Cosma Contantin Professor, PhD Babes-Bolyai University Professor 13 Dinu Corneliu Engineer, professor, PhD University of Bucharest Honorary Professor 14 Dinu Florinel Engineer, PhD, associate professor Oil & Gas University of Ploiesti, School of Oil & Gas Engineering, Department for Drilling, Extraction and Transportation of Hydrocarbons President of the Teaching Staff Union in the Oil & Gas University of Ploiesti 15 Dragota Carmen Sofia PhD The Institute of Geography of the Romanian Academy 1 st Degree Senior Researcher 16 Florea Maria 1 st degree senior researcher, engineer, PhD LUCIAN BLAGA University of Sibiu Associate Teacher 17 German Silviu Mihai Geologist Danubian Energy Consulting Senior Advisor 18 Gheorghitoiu Mihai Engineer, PhD Oil & Gas University of Ploiesti Contributor Professor 19 Ignat Ioan Engineer S.N.G.N. ROMGAZ S.A. Medias Adviser 20 Malureanu Ion Engineer, professor, PhD Oil & Gas University of Ploiesti Chairman of the Oil & Gas University Senate 21 Marcu Mariea Engineer, PhD Oil & Gas University of Ploiesti Associate Professor 22 Marunteanu Cristian Dan Valentin Engineer, professor, PhD University of Bucharest Professor 23 Mocuta Traian PhD in oil geology Oil & Gas University of Ploiesti Associate Teacher 24 Moldovan Mircea PhD in nuclear physics Babes-Bolyai University Research Assistant, 1 st
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Claudiu Degree Technician 25 Munteanu Ioan Engineer, PhD, assistant lecturer University of Bucharest Assistant Lecturer 26 Musatescu Virgil Engineer, PhD & economist, PhD Polytechnic University of Bucharest Project Manager SOP HRD ID 52761, benefici ary: the Polytechnic University of Bucharest 27 Nemes Toderita Engineer, professor, PhD Lucian Blaga University of Sibiu Professor 28 Nita Dan Constantin PhD Babes-Bolyai University Research Assistant 29 Oaie Gheorghe Geologist, PhD National Institute for Research & Development for Marine Geology and Geoecology Managing Director 30 Onutu Ion Engineer, professor, PhD Oil & Gas University of Ploiesti Professor, Vice-dean of the School of Oil and Petrochemistry Technology 31 Parepa Simion Engineer, PhD Oil & Gas University of Ploiesti Lecturer, Department of Mechanical Engineering 32 Patruti Alexandru Engineer, PhD Romaqua Group S.A. Adviser 33 Pavlovschi Neculai Engineer, PhD - Professor 34 Popa Mihai Emilian PhD University of Bucharest Associate Professor 35 Pruna Mihaela Florentina Associate professor Romanian-American University Dean 36 Purica Ionut Engineer, PhD, professor & PhD in economics IPE INCE Romanian Academy (Institute for Economic Forecast National Institute for Economic Research) Senior Researcher 37 Radu Gheorghe Engineer, PhD S.N.G.N. ROMGAZ S.A. Medias Director of the Business Development Department 38 Radu Varinia Raluca Attorney LL.B, M.A, MBA Varinia Radu Law Office Bucharest Bar Partner Attorney 39 Saramet Mihai Remus Engineer, PhD, professor Al. I. Cuza University of I asi Adjunct Professor 40 Seghedi Antoneta PhD in geology National Institute for Research & Development for Marine Geology and Geoecology 1 st Degree Researcher 41 Tabara Daniel PhD, lecturer Al. I. Cuza University of I asi Lecturer 42 Tudor Darie Engineer, PhD, professor Naval University of Constanta Professor 43 Uzlau Marilena Carmen Lecturer, PhD Hyperion University, School of Economics IPE ((Institute for Economic Forecast) Romanian Academy Dean Researcher
The Executive Secretariat of RNC-WEC ensured the organisational support for the creation of the CENTGAS report Natural gas resources from unconventional reserves Potential and valorisation by hosting monthly meetings of the Directors Board, of the Science Board, weekly work meetings with the 5 module coordinators, traveling in the country and abroad, scienti fic events which promoted CENTGAS.
The Executive Secretariat of RNC-WEC: - Gheorghe Balan Executive General Director - Silvia Prundianu Head of Events, Comunication and Internal Public Relations Department - Violeta Georgiana Pera - Head of Secretari ate, Comunication and External Public Relations Department - Elena Pavel Head of Financial and Marketing Department NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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Romanian National Committee of the World Energy Council Executive Secretariat
WEC/RNC Di rectors Board Decisi on
The Decision of the Directors Board no. 145 dated 12.07.2012, approves the establishment of: THE EUROPEAN CENTRE OF EXCELLENCE IN GAS FROM SHALE GAS, without legal personality, within theorganizational structure of the WEC/RNC with head office in Bucharest, 1-3 Lacul Tei bd., sector 2, called CENTGAS.
- The European Centre of Excellence in Gas from Shale Gas has the foll owing scope of acti vi ty: A comprehensiveunderstanding of the potential represented by natural gas shales and the issues regarding the exploration and development of shalegas in Romania.
Ti tle of the project. The potential of natural gas from unconventional reserves and the status of exploration and development of shalegas in Romania.
The project team. The project is bases on the combined effort of a multi-disciplinary team of over 40 specialists
The projects objecti ve is to gradually collect and analyze the information on shale gas in Romania in an international and European context.
Relevant fiel ds covered by the project: Geology, Mineralogy, Oil reserves geology, Geophysics, Technology and equipment, Environmental protection, Economy, Sociology, Archaeology, Legislation, Energy security policies
The project structure on 6 modules, including thenames of the module coordinators-managers: - Module 1: General issues potential and val orisati on coord. Prof. Nicolae Anastasiu, m.c. of the Romanian Academy Prof. Niculae Napoleon Antonescu Module 2: Unconventional energy resources in Romani a coord. Prof. Nicolae Anastasiu, m.c. of theRomanian Academy Module 3: Equi pment, techni ques and technol ogies - specifi c equi pment, techni ques and technol ogies for drilling, completi on and production of unconventional gas wells coord. Prof. Niculae Napoleon Antonescu Module 4: Oil operations associated with unconventi onal gas and potential environmental impact coord. PhD. eng. Alexandru Patruti Module 5: The economi c impact of unconventional gas resources in Romani a, at the national and l ocal level s coord. Univ. lect. PhD. eng. Ionut Purica Module 6 : The appli cable law on the devel opment of unconventi onal gas resources Eng. Mihai Silviu German
The General Executive Director of the WEC/RNC shall carry out theprovisions of the hereby decision.
Iul ian Iancu WEC/RNC Chairman NATURAL GAS RESOURCES FROM UNCONVENTIONAL FIELDS - POTENTIAL AND RECOVERY - - ABSTRACT-
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ROMANIAN NATIONAL COMMITTEE OF THE WORLD ENERGY COUNCIL Adress: Bdul. Lacul Tei nr.1-3, cod 020371, Bucureti sector 2 Phone: +40372.821.475; +40372.821.476 E-mail: ghbalan@cnr-cme.ro Website: www.cnr-cme.ro
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