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Not an Easy Balance:
Shale Oil & Gas in NWT
Communities
Presentation to Keepers of the Water Conference
Shauna Morgan, The Pembina Institute
September 27, 2012 , Fort Nelson
The Pembina Institute
The Pembina Institute is
an environmental
nonprofit think tank
with 50+ staff in seven
offices. We work to
advance clean energy
solutions through
innovative research,
education, consulting
and advocacy.
                           2
Recent Pembina Research
                      + four reports for the
                      Shale Gas Thought
                      Leader’s Forum in
                      September 2012
Shale potential in NWT
Gas



      Source: June-Warren Nickles group.




Oil



       Source: USGS
Overview of Sahtu Exploration Parcels
                And
       Development Proposals
Exploration Plans
Winter 2011-2012
•Husky- 3D Seismic, drilled 2 wells
•Explor-2D Seismic

Summer 2012
•Husky- research (water quality/quantity, wildlife, vegetation, permafrost)
•Conoco- research (similar to Husky)
•MGM- scouting for proposed winter work

Winter 2012-2013
•MGM- will drill 1 well under permit S12A-001, licence S12L1-001
•Husky- proposes to re-enter 2 wells, construct all season road
•Conoco- proposes to drill 2 wells, possibly 3

Years After
•Potentially all 5 companies will be operating at the same time
“Balance”
      “Capacity”

     “Consultation”
“(Traditional Knowledge?)”
Empower
                    Collaborate
               Involve
         Consult
Inform
                    Modified from IAP2 Spectrium
Decision Points /
Opportunities for
Influence
   Before
    Before
   Leases
    Leases      ABA Negotiation
                 ABA Negotiation         Exploration Licenses
                                          Exploration Licenses        Exploration
                                                                       Exploration
   Issued
    Issued
                                   FF
Consultation
 Consultation                      aa
    w/
     w/            Land Corps
                    Land Corps     ll                            FF
communities
 communities                       ll                            aa Monitoring
                                                                    Monitoring
                  (others too?)
                   (others too?)                       EA
                                                       EA        ll
                                        Screening
                                         Screening               ll
                                        (regional
                                         (regional
                                          Board)
                                           Board)    Hearings 22
                                                     Hearings
                                                                 11
                                   22                            00    Cumulativ
                                                                        Cumulativ
                                   00 Letter:
                                        Letter:                  33    eeImpacts
                                                                          Impacts
                                   11 ‘Public
                                        ‘Public
                                   22 Concern’
                                       Concern’                                 9
For more information
• www.pembina.org
• Shauna Morgan at shaunam@pembina.org

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Not An Easy Balance: Shale Oil & Gas in NWT Communities

  • 1. Not an Easy Balance: Shale Oil & Gas in NWT Communities Presentation to Keepers of the Water Conference Shauna Morgan, The Pembina Institute September 27, 2012 , Fort Nelson
  • 2. The Pembina Institute The Pembina Institute is an environmental nonprofit think tank with 50+ staff in seven offices. We work to advance clean energy solutions through innovative research, education, consulting and advocacy. 2
  • 3. Recent Pembina Research + four reports for the Shale Gas Thought Leader’s Forum in September 2012
  • 4. Shale potential in NWT Gas Source: June-Warren Nickles group. Oil Source: USGS
  • 5. Overview of Sahtu Exploration Parcels And Development Proposals
  • 6. Exploration Plans Winter 2011-2012 •Husky- 3D Seismic, drilled 2 wells •Explor-2D Seismic Summer 2012 •Husky- research (water quality/quantity, wildlife, vegetation, permafrost) •Conoco- research (similar to Husky) •MGM- scouting for proposed winter work Winter 2012-2013 •MGM- will drill 1 well under permit S12A-001, licence S12L1-001 •Husky- proposes to re-enter 2 wells, construct all season road •Conoco- proposes to drill 2 wells, possibly 3 Years After •Potentially all 5 companies will be operating at the same time
  • 7. “Balance” “Capacity” “Consultation” “(Traditional Knowledge?)”
  • 8. Empower Collaborate Involve Consult Inform Modified from IAP2 Spectrium
  • 9. Decision Points / Opportunities for Influence Before Before Leases Leases ABA Negotiation ABA Negotiation Exploration Licenses Exploration Licenses Exploration Exploration Issued Issued FF Consultation Consultation aa w/ w/ Land Corps Land Corps ll FF communities communities ll aa Monitoring Monitoring (others too?) (others too?) EA EA ll Screening Screening ll (regional (regional Board) Board) Hearings 22 Hearings 11 22 00 Cumulativ Cumulativ 00 Letter: Letter: 33 eeImpacts Impacts 11 ‘Public ‘Public 22 Concern’ Concern’ 9
  • 10. For more information • www.pembina.org • Shauna Morgan at shaunam@pembina.org

Editor's Notes

  1. Experience with sustainable development policies, challenges and opportunities within the extraction industries
  2. Shauna -13 Shale oil leases near Norman Wells (seismic/exploration activity ramping up – applications for exploration wells to be drilled in 2012/13 season) Other shale gas potential in southern NWT (from known deposits in Alberta/BC) ~165 Tcf in Horn River Basin Recent news that Liard Basin, which extends from NE B.C. into NWT and Yukon, could be one of the most prolific shale gas reservoirs in the world – more testing needed Cordova is less explored than Horn River so far – 325 exploratory wells drilled so far on BC side 29 Trillions of cubic feet (Tcf) of gas is risked technically recoverable Nexen has acquired a 38,000-acre lease position in the Cordova Embayment. Penn West Energy Trust and Mitsubishi have formed a joint venture to develop the estimated 5 to 7 Tcf of recoverable shale gas resources on their 120,000-acre (gross) lease area, planning to drill 5 wells in 2010. Several others have about 130,000 acres each
  3. Different political regions Different rights holders Different geologies (Mackenzie Plain surrounding river; Franklin Mountains NE of river; Mackenzie Mountains SW of river; Peel Plain and Plateau to NW) – lowlying wetlands, karst with underground streams and sinkholes Compounded with climate change – megaslumping, ground shifting
  4. Shauna- Thank you for the opportunity to speak to you today. I’d be happy to take questions.