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Shalegas production in NL: a case study
The Brabant Case

Taco Hoencamp, shalegas expert Royal HaskoningDHV
Suppose:
Minister Kamp decides to shale
gas exploration drillings
Production of shale gas is
economically viable
A gas company wants to produce:
Case study Brabant for EBN: 2011/12
1. Shale gas production field:
How does it look like?

2. Which environmental effects?
3. Which mitigating measures
possible?
4. Participation of the region
C-MER (19/9/2013): case
study example for National
Spatial plan shale gas
Four subjects above in this
presentation
Production field shale gas: many sites
Each site: clustering of 6- 10 wells
Vertical well: 3500m deep
Horizontal well: 1500-2500m
Space between horizontal wells: 400m

Surface ± 10 – 20 km2
1-2 year drilling - 2 month fracking
Production phase 10 to 15 years
Water use
Drilling:
± 13.000 m3
Fracking with re-use: ± 90.000 m3

Waste water
Drilling water: ± 13.000 m3
Production water ± 90.000 m3 per year
Finding sites (in the case study): via GIS
Keep distance from:
Buildings, houses
Roads, railways, canals, rivers
Existing safety zones
i.e. gas and fuel lines

Ground water protection areas, drill free zones
Natura2000 areas
Fault lines
Archaeological sites

Preference for:
Agricultural areas
Near main gas distribution lines
Example 1: Away from buildings,houses
Distance >
100m
Difficult
criteria
NL is
densely
populated
Eindhoven
Example 2: Not in protected areas
But still very
close.
Appropriate
Assessment
obligatory
Assess effects
on nature
Example 3: Oil and gas distribution systems
Not too close
Safety risk

Not too far
NL- gas
network
needed for
distribution
Example 4: Preference for agricultural areas
Preference for
Pasture
Farm land

Stay away from
Hay (heide)
Production field - result spatial analysis
Area around Boxtel
37 sites
Average surface 10 km2
Construction in 10-15 yrs
3 – 5 drilling rigs
Mitigating measures

6
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4
8
9
3

6

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1

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9
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2

2
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Not drilling
simultaneously in all
areas
Central gas treatment
Gas pipes buried along
roads to treatment plant
Under the surface it looks likes this

3D-view of Wells
Edited concept
Scenario 4
Shale gas phases
Site preparation
Well drilling
Fracking
Production
Re-fracking ( after ±10 year)
Possible environmental effects production field
Traffic disturbance
Waste water storage / transport
Water use
Tremors
Noise and light disturbance
Landscape
Ground water pollution
Also (but not in this presentation)
Chemicals
Regional Safety
Nature / Natura2000
Traffic disturbance mostly during first 8 years
A lot of circulating trucks with
Drilling rigs,
Fracking machines,
A lot of water and sand
Waste water and production water
Other (such as chemicals)

Road network not suitable everywhere:
Small roads for light traffic
Traffic security

CO2 emissions, tremors, noise
Reduction traffic disturbance: waste water collection
If you are digging for a
gas collection system:
Waste water via pipes
Same trench as of gas
collection lines

To central treatment plant
Less traffic
Less risks for pollution
(proper monitoring
required)
Reduction traffic disturbance: water supply system
If you are digging for a gas
collection system:
Water supply via pipes
For a large part: same
trench as gas lines
Water company “Brabant
Water”
Water production per year:
180.000.000 m3
Of which 40% for industry

Water use shale gas:
8.000.000 m3 in 8 year
1.000.000 m3 per year
= 0,5% production of BW
Tremors
Only with fracking
Not due to subsidence

In UK: 2,3 Richter scale
More wells, more fracks, more risks
Risk reduction by:
Stay away from faults: detailed research
Constant micro seismic monitoring
Apply traffic light method
Light
Light disturbance of drilling rigs / well locations
Already significantly reduced by existing measures
Adapted light: Clear Sky-lamps
Inward directed lightning
Much less disturbance for flora and fauna
Much less visible from a distance
Groundwater
Contamination via fracks
Not a real risk
Length fracks maximum 300 m,
horizontal well at > 3000 m depth
Many impermeable layers in
between well - groundwater
Careful with faults

Contamination via well: possible
Production field many wells, more
risk
Proper well design, many casings
Proper monitoring
Landscape and local solutions
Site selection based on:
Criteria (as from the case study)

Additional criteria
Least possible noise disturbance
Safest routes for heavy traffic
Fitting in the landscape
Participation of the region
Fitting in the landscape
Average area covered by a site: 10 – 20 km2
Average distance between sites: 4 – 6 km
Fitting in the landscape
Average area covered by a site: 10 – 20 km2
Average distance between sites: 4 – 6 km
Economics of Brabant shale gas production
Based on:
Halliburton Notional Field Development
Royal HaskoningDHV calculation of costs
EBN Leeswijzer
Not based on exploration drillings!!

Capital Investment for 37 sites / 315 wells:
Drilling: € 2.7 - € 3.0 billion
Fracking: € 1.2 billion
Installations, pipe systems: € 0.6 - € 0,7 billion
Totalling € 4,5 – 4,9 billion

Operational costs for 15 years: € 2.3 – 2.8 billion
Production per year: average 6.000.000.000 m3
Profit (after taxes) based on € 0,26/m3 gas prize
16-18% return on investment
Also in the case study (2011!):
Oil- and gas drillings are controversial in NL:
example Waddenzee,
Shale gas has a bad name:
Mainly due to bad experiences in US
Gas land; The Promised Land
A lot of positive changes now in US

Conditions for proper participation region:
Openness
Transparency
Include region in spatial planning process
Create Win - Win situations
Transparency and openness
Example: North-South line Amsterdam (metro)
Past:
A lot of hindrance
Subsidence of houses
No contact with citizens
Project about to stop

Now:
Openness, transparency
No censorship
Every debate / comments through website
Pro- and Contra- debate on website
Contractor workers show what they are doing
Organised visits to building sites;
Some construction parts permanently accessible
Transparency and openness
Make risks discussable
Show what you will do when a
risk occurs.

Open house
Excursions to the
drilling/fracking site
Invite the surrounding citizens:
open days
Visit schools, social clubs

Damage form
Monitoring: essential element of openness
Measure a lot:
Measure smart and measure thoroughly
Show what you measure
direct online, no censorship

To be monitored:
Drilling process: solid waste, energy use
Fracking process: seismic activity, energy use
Waste water: quality / quantity
Traffic intensity
Air, light, noise emissions
Gas production:
And many more

Independent controller
Win - win situations
Share profits: regional or Local
Fund for investments

Shale gas followed by use of
geothermal heat
Long term lease of (agricultural)
fields for sites
Income guaranty agriculture
Conclusions
Production of shale gas on a regional scale
A thorough EIA is required:
Some effects seems small, others very large
Many effects can be mitigated
Some effects demand specific measures

Find solutions together with the region
Be open with information and discuss risks
(and the measures to contain them)
Conclusion
Thanks to EBN for making this presentation possible
Link to RHDHV report on website EBN:
http://www.ebn.nl/Actueel/Documents/2012_Shale-gasproduction-in-a-Dutch-perspective_Haskoning.pdf
More information:
Taco.hoencamp@rhdhv.com
Erik.zigterman@rhdhv.com
www.royalhaskoningdhv.com

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FEX | Industrie & Energie | 131112 | Conferentie Schaliegas & Olie | Presentatie | Taco Hoencamp

  • 1. Shalegas production in NL: a case study The Brabant Case Taco Hoencamp, shalegas expert Royal HaskoningDHV
  • 2. Suppose: Minister Kamp decides to shale gas exploration drillings Production of shale gas is economically viable A gas company wants to produce:
  • 3. Case study Brabant for EBN: 2011/12 1. Shale gas production field: How does it look like? 2. Which environmental effects? 3. Which mitigating measures possible? 4. Participation of the region C-MER (19/9/2013): case study example for National Spatial plan shale gas Four subjects above in this presentation
  • 4. Production field shale gas: many sites Each site: clustering of 6- 10 wells Vertical well: 3500m deep Horizontal well: 1500-2500m Space between horizontal wells: 400m Surface ± 10 – 20 km2 1-2 year drilling - 2 month fracking Production phase 10 to 15 years Water use Drilling: ± 13.000 m3 Fracking with re-use: ± 90.000 m3 Waste water Drilling water: ± 13.000 m3 Production water ± 90.000 m3 per year
  • 5. Finding sites (in the case study): via GIS Keep distance from: Buildings, houses Roads, railways, canals, rivers Existing safety zones i.e. gas and fuel lines Ground water protection areas, drill free zones Natura2000 areas Fault lines Archaeological sites Preference for: Agricultural areas Near main gas distribution lines
  • 6. Example 1: Away from buildings,houses Distance > 100m Difficult criteria NL is densely populated Eindhoven
  • 7. Example 2: Not in protected areas But still very close. Appropriate Assessment obligatory Assess effects on nature
  • 8. Example 3: Oil and gas distribution systems Not too close Safety risk Not too far NL- gas network needed for distribution
  • 9. Example 4: Preference for agricultural areas Preference for Pasture Farm land Stay away from Hay (heide)
  • 10. Production field - result spatial analysis Area around Boxtel 37 sites Average surface 10 km2 Construction in 10-15 yrs 3 – 5 drilling rigs Mitigating measures 6 5 7 4 8 9 3 6 9 1 2 8 7 5 7 9 8 6 4 1 3 2 5 1 3 4 3 9 1 2 2 4 8 7 5 6 Not drilling simultaneously in all areas Central gas treatment Gas pipes buried along roads to treatment plant
  • 11. Under the surface it looks likes this 3D-view of Wells Edited concept Scenario 4
  • 12. Shale gas phases Site preparation Well drilling Fracking Production Re-fracking ( after ±10 year)
  • 13. Possible environmental effects production field Traffic disturbance Waste water storage / transport Water use Tremors Noise and light disturbance Landscape Ground water pollution Also (but not in this presentation) Chemicals Regional Safety Nature / Natura2000
  • 14. Traffic disturbance mostly during first 8 years A lot of circulating trucks with Drilling rigs, Fracking machines, A lot of water and sand Waste water and production water Other (such as chemicals) Road network not suitable everywhere: Small roads for light traffic Traffic security CO2 emissions, tremors, noise
  • 15. Reduction traffic disturbance: waste water collection If you are digging for a gas collection system: Waste water via pipes Same trench as of gas collection lines To central treatment plant Less traffic Less risks for pollution (proper monitoring required)
  • 16. Reduction traffic disturbance: water supply system If you are digging for a gas collection system: Water supply via pipes For a large part: same trench as gas lines Water company “Brabant Water” Water production per year: 180.000.000 m3 Of which 40% for industry Water use shale gas: 8.000.000 m3 in 8 year 1.000.000 m3 per year = 0,5% production of BW
  • 17. Tremors Only with fracking Not due to subsidence In UK: 2,3 Richter scale More wells, more fracks, more risks Risk reduction by: Stay away from faults: detailed research Constant micro seismic monitoring Apply traffic light method
  • 18. Light Light disturbance of drilling rigs / well locations Already significantly reduced by existing measures Adapted light: Clear Sky-lamps Inward directed lightning Much less disturbance for flora and fauna Much less visible from a distance
  • 19. Groundwater Contamination via fracks Not a real risk Length fracks maximum 300 m, horizontal well at > 3000 m depth Many impermeable layers in between well - groundwater Careful with faults Contamination via well: possible Production field many wells, more risk Proper well design, many casings Proper monitoring
  • 20. Landscape and local solutions Site selection based on: Criteria (as from the case study) Additional criteria Least possible noise disturbance Safest routes for heavy traffic Fitting in the landscape Participation of the region
  • 21. Fitting in the landscape Average area covered by a site: 10 – 20 km2 Average distance between sites: 4 – 6 km
  • 22. Fitting in the landscape Average area covered by a site: 10 – 20 km2 Average distance between sites: 4 – 6 km
  • 23. Economics of Brabant shale gas production Based on: Halliburton Notional Field Development Royal HaskoningDHV calculation of costs EBN Leeswijzer Not based on exploration drillings!! Capital Investment for 37 sites / 315 wells: Drilling: € 2.7 - € 3.0 billion Fracking: € 1.2 billion Installations, pipe systems: € 0.6 - € 0,7 billion Totalling € 4,5 – 4,9 billion Operational costs for 15 years: € 2.3 – 2.8 billion Production per year: average 6.000.000.000 m3 Profit (after taxes) based on € 0,26/m3 gas prize 16-18% return on investment
  • 24. Also in the case study (2011!): Oil- and gas drillings are controversial in NL: example Waddenzee, Shale gas has a bad name: Mainly due to bad experiences in US Gas land; The Promised Land A lot of positive changes now in US Conditions for proper participation region: Openness Transparency Include region in spatial planning process Create Win - Win situations
  • 25. Transparency and openness Example: North-South line Amsterdam (metro) Past: A lot of hindrance Subsidence of houses No contact with citizens Project about to stop Now: Openness, transparency No censorship Every debate / comments through website Pro- and Contra- debate on website Contractor workers show what they are doing Organised visits to building sites; Some construction parts permanently accessible
  • 26. Transparency and openness Make risks discussable Show what you will do when a risk occurs. Open house Excursions to the drilling/fracking site Invite the surrounding citizens: open days Visit schools, social clubs Damage form
  • 27. Monitoring: essential element of openness Measure a lot: Measure smart and measure thoroughly Show what you measure direct online, no censorship To be monitored: Drilling process: solid waste, energy use Fracking process: seismic activity, energy use Waste water: quality / quantity Traffic intensity Air, light, noise emissions Gas production: And many more Independent controller
  • 28. Win - win situations Share profits: regional or Local Fund for investments Shale gas followed by use of geothermal heat Long term lease of (agricultural) fields for sites Income guaranty agriculture
  • 29. Conclusions Production of shale gas on a regional scale A thorough EIA is required: Some effects seems small, others very large Many effects can be mitigated Some effects demand specific measures Find solutions together with the region Be open with information and discuss risks (and the measures to contain them)
  • 30. Conclusion Thanks to EBN for making this presentation possible Link to RHDHV report on website EBN: http://www.ebn.nl/Actueel/Documents/2012_Shale-gasproduction-in-a-Dutch-perspective_Haskoning.pdf More information: Taco.hoencamp@rhdhv.com Erik.zigterman@rhdhv.com www.royalhaskoningdhv.com