New IEA report urges environment focus for shale gas growth | WPN World People News

Environmental concerns could check the growth of the golden age of gas through exploitation of the world's vast resources of shale gas and other unconventional natural gas sources, the International Energy Agency warned in a new report released here Tuesday.

Urging governments, industry and other stakeholders to work together to address legitimate public concerns about the associated environmental and social impacts, the IEA in its special World Energy Outlook report on unconventional gas, Golden Rules for a Golden Age of Gas presented a set of rules to address the concerns.

"The technology and the know-how already exist for unconventional gas to be produced in an environmentally acceptable way," said IEA Executive Director Maria van der Hoeven.

"But if the social and environmental impacts are not addressed properly, there is a very real possibility that public opposition to drilling for shale gas and other types of unconventional gas will halt the unconventional gas revolution in its tracks."

The report projects that application of the golden rules could help triple the world production of unconventional gas, primarily shale gas, between 2010 and 2035 to 1.6 trillion cubic metres with the US and China expected to emerge as major producers.

In contrast, lack of rules could lead to lack of public acceptance and stall the production growth to slightly above current levels by 2035.

The Golden Rules underline the importance of full transparency. It seeks measuring and monitoring of environmental impacts and engagement with local communities.

It urges careful choice of drilling sites and measures to prevent any leaks from wells into nearby aquifers; rigorous assessment and monitoring of water requirements and of waste water.

There is also emphasis on measures to target zero venting and minimal flaring of gas; and improved project planning and regulatory control.

At their recent Camp David summit, G8 leaders welcomed and agreed to review this IEA work on potential best practices for natural gas development.

"To build on the Golden Rules, we are establishing a high-level platform so that governments can share insights on the policy and regulatory action that can accompany an expansion in unconventional gas production, shale gas in particular," said Maria van der Hoeven.

The platform is to be open to both IEA members and non-members.

IEA Chief Economist and the chief author of the report Fatih Birol said despite the financial cost, adherence to the golden rules would help to lower the operational costs.

"Applying the Golden Rules could increase the cost of a typical shale-gas well by around 7%, but, for a larger development project with multiple wells, investment in measures to reduce environmental impacts may in many cases be offset by lower operating costs," the economist said.

Source: Britain News.Net