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Presentation Structurei. Introduction: The Oil and Gas Industry a) Industry Value b) Industry Importance c) Oil and Gas Explorationii. Environment a) Exploration and the Environment b) Results of Exploration c) Direct Effectiii. Hydraulic Fracturing a) Process b) Fracking in the UK: Shale Gas c) Economic Benefits d) Environmental Effectsiv. Conclusion a) Fracking Recommendations
Introduction: The oil and gas industry. The scope of the oil and gas industry covers companies involved in the searching, production and distribution of crude oil and natural gas. (exploration and exploitation). Upstream: search, recovery and production of crude oil and natural gas. Downstream: distribution of natural gas as well as by-products of crude oil.
Value of the oil and gas industry. According to the Financial Times Global 500, 2011: 54 of the world’s wealthiest 500 companies in 2010 belonged to the oil and gas industry. Combined market value of $4.17 trillion. 15.9% of the wealth of the world’s wealthiest 500 companies belonged to the oil and gas industry at the end of 2010.
Importance of the oil and gasindustry. Crude oil and natural gas provide the world with 60% of its daily energy needs. Transportation: cars, trains, ships and planes. Apart from its obvious uses there are a lot of our everyday products which are manufactured as a result of by-products of crude oil and natural gas. www.petroleumonline.com www.dare.co.in
Oil and gas exploration. According to www.oilandgasiq.com oil and gas exploration could also be known as hydrocarbon exploration. It is the search by petroleum geologists and geophysicists for hydrocarbon deposits beneath the earth’s surface such as oil and natural gas. Exploration is an expensive and high risk operation. Exploration could be carried out offshore and onshore.
Offshore exploration. Exploration of the sea bed and the subsoil with the use of a drill ship, jack-up drilling rig or floating drilling rig.
Onshore exploration. Exploration on land with the use of mobile drilling rigs.
Oil and gas exploration and theenvironment. Oil and gas exploration involves a lot of activities that are harmful to the environment. For instance, early stages of oil and gas exploration onshore involves the use of explosives, marine airguns or vibroseis to generate seismic waves in a particular area to determine whether there is sufficient oil and gas present in the ground to be explored. Canadian Association of Petroleum Producer, Technical Report on A National Inventor of Greenhouse Gas, Criteria Air Contaminant, and Hydrogen Sulphide Emissions by the Upstream Oil and Gas Industry, Volume 4.
Example of avibroseis truck usedin the initial stage ofoil and gasexploration togenerate seismicwaves in an area.Usually there is a lotof emission ofcarbon dioxide fromthese trucks whilethey are being used.
Results of the activities involvedin oil and gas exploration use of explosives and vibroseis lead to emission of carbon dioxide and methane (greenhouse gases) into the environment Gas flaring is a result of oil and gas exploration and it also leads air pollution and emission of greenhouse gases Oil spill is usually associated with oil and gas exploration offshore which may be as a result of blowouts during the well drilling phase or during well testing(All About Blowout, R. Westergaard, Norwegian Oil Review, 1987)
Direct effect of oil and gas exploration on the environment Climate change due to emission of greenhouse gases in the atmosphere High mortality rate of aquatic animals due to oil spill offshore Acid rain due to emission of greenhouse gases which also acidify the soil, thereby causing soil fertility loss and damage of crops Loss of biodiversity in breeding grounds Loss of portable and industrial water resources (Impacts of oil pollution on livelihoods in Nigeria by Nenibarini ZabbeyPaper presented at the conference on “Petroleum and Pollution – how does that impact human rights? At Kulturhuset, Stockholm, Sweden, 27th April, 2009)
Some examples of the effect of oil and gasexploration to the environment in world Oil and gas exploration in theBP oil spill at the gulf of Mexico went a Niger-delta led to the pollutionlong way in affecting biodiversity in of land which affectedthe region Agriculture in the area
Hydraulic Fracturing: The ‘Fracking’ ProcessFigure 1: US Environmental Protection Agencyhttp://www.epa.gov/safewater/uic/pdfs/hfresearchstudyfs.pdf
Economic Effects Energy Security (EA) Homeowners benefit from cheaper heating and electricity. (Economist) In the US Drilling for gas has created hundreds of thousands of jobs (Forbes) In the US billions of dollars of lease payments and royalties to landowners (Forbes) Yale cost-benefit analysis shows economic benefits of Fracking $100 billion a year whilst environmental effects $250 million (The Arithmetic of Shale Gas)
Environmental Effects Methane contaminated ground water. (Center on Global Change: Duke University) The toxic chemicals used in the process. (Fracfocus) Contamination of water from materials leaching out of fracked rocks into the fracking fluid e.g. Arsenic (Environment Agency) Radioactive Contamination in wastewater (savethewater.org) The quantity of water involved in the fracking process. (EPA) Link with air pollution, due to the production/ leaks of volatile chemicals. Reports of respiratory problems in the UK. (Nature.com) Link with Earthquakes, notoriously in Lancashire.(DECC) Fracking also demands an industrial landscape and an increase in traffic. (EA)