‘Golden Rules’ a guideline for gas industry CARR E CARRIE KELLYELLYARRIE KELLI
The future of liquid natural gases hinges not only on technology, but the ability of government and energy companies to extract them in a way that ensures the public is on board.
That’s the message in the International Energy Agency’s (IEA) report Golden Rules for a Golden Age of Gas. The agency believes that natural gas is poised to enter a golden age, but only if shale gas, tight gas and coalbed methane can be developed profi tably and in an environmentally acceptable manner.
Public concerns about water, air pollution and land use are legitimate, says Maria van der Hoeven, executive director of the International Energy Agency (IEA) and former Dutch politician.
“Industry must win public confi dence by demonstrating exemplary performance,” she says.
The Golden Rules were published to give companies and countries around the world a guideline for ensuring the resource is extracted responsibly.
“This is not just good PR. It’s in all of our best interests that the industries remain healthy,” says van der Hoeven. “Underestimating public sentiment is simply not good business.”
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The technology to recovered unconventional gas resources is there, but it also takes responsible management and quality control to be successful, she continues.
According to the report, unconventional gas production, primarily shale gas, could more than triple to 1.6 trillion cubic metres in 2035 if companies and government adopt the “Golden Rules,” which are:
Maria van der Hoeven, Executive Director of the
1. Measure, disclose and engage with local communities, residents and stakeholders.
2. Watch where you drill by choosing well sites that minimize impact on the community and land.
3. Isolate wells and prevent leaks. 4. Treat water responsibly. 5. Eliminate venting, minimize fl aring and other emissions. 6. Be ready to think big.
7. Ensure a consistently high level of environmental performance.
The IEA says the Golden Rules are necessary because since unconventional gas resources are trapped in tight or low permeability rock, the eff ort to extract them is much greater than with conventional resources. That means higher intensity drilling and more disruption above ground.
It may cost more to follow the Golden Rules, but investing in ways to reduce the environmental impact can usually be off set by lower operating costs, the IEA report states. The estimated cost increase for a typical shale gas well is seven per cent.
Van der Hoeven is sure gas will displace coal since it is a bridge to cleaner energy, but government and companies must be attentive in order for that to happen.
“We can’t take it for granted.”
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With its abundance of large unconventional gas resources, Canada has the opportunity to be a key supplier to Asia, van der Hoeven says.
“The future of Canadian gas is in Asia. Given the uncertain prospects of nuclear power in Japan, the political drive to clean up the Chinese energy system and the acute energy shortages in India, Asia is intensely looking for energy supplies,” she adds.
"There is no reason why Canada should not emerge as a major competitive supply point to Asia."
International Energy Agency
41074697•10/31/12
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