Frodsham 5 July 2017 Tom Pickering Operations Director, INEOS - PowerPoint PPT Presentation

Click to edit Master title style  Click to edit Master text styles  Second level  Third level • Fourth level • Fifth level Frodsham 5 July 2017 Tom Pickering Operations Director, INEOS Shale www.ineosshale.com www.ineosshale.com

Click to edit Master title style INEOS Licences England  Click to edit Master text styles  Second level  Third level • Fourth level • Fifth level www.ineosshale.com www.ineosshale.com

Click to edit Master title style INEOS Licences - Cheshire  Click to edit Master text styles  Second level  Third level • Fourth level • Fifth level www.ineosshale.com www.ineosshale.com

Click to edit Master title style INEOS Licences - Frodsham  Click to edit Master text styles  Second level  Third level • Fourth level • Fifth level www.ineosshale.com www.ineosshale.com

Click to edit Master title style The case for shale gas • Why explore for commercial shale gas reserves? What benefits would the country derive from more gas production?  Click to edit Master text styles  Second level • What does the shale gas development process look like ?  Third level • Fourth level • Fifth level • Can shale gas development be acceptable from a safety and environmental perspective? • What are the key objections to shale gas development in the UK and how can they be addressed? • What does the independent evidence say? www.ineosshale.com www.ineosshale.com

Click to edit Master title style UK gas production is in rapid decline  Click to edit Master text styles  Total North Sea gas and oil  Second level production has been rapidly  Third level declining since 2000 • Fourth level • Fifth level  UK reliance on gas imports has grown to over 50% of demand www.ineosshale.com www.ineosshale.com

Click to edit Master title style UK Energy Mix - Gridwatch  Click to edit Master text styles  Second level  Third level • Fourth level • Fifth level www.ineosshale.com www.ineosshale.com

Click to edit Master title style Why do we need gas?  Heat energy and power generation  Click to edit Master text styles  84% of UK homes rely upon gas heating  Second level  Third level • Fourth level  Gas is used to produce many items that we use every day • Fifth level  Clothing, packaging, auto, pharmaceuticals, cosmetics, electronics  To support the switch to renewables  Gas supports intermittent renewables energy production  Growth of renewable capacity takes time www.ineosshale.com www.ineosshale.com

Click to edit Master title style We Keep People… Healthy Housed  Click to edit Master text styles  Second level  Third level • Fourth level Mobile • Fifth level Clothed And…in Touch www.ineosshale.com www.ineosshale.com

Click to edit Master title style What are the benefits of a local shale gas industry?  Energy Security  We rely upon imports for more than 50% of our gas demand  Click to edit Master text styles  Forecast to increase to 80% by 2035  Second level  Third level  Climate Change • Fourth level  Local shale gas emits 10% less greenhouse gases than imported gas • Fifth level  For power generation, shale gas has less than half the emissions of coal  Jobs, Investment and Community Benefits  Potential for £33b investment and 64,000 new jobs  6% of revenues (£1m per well) to landowners, residents and local communities  Balance of Payments  Today we send over £7b pa overseas to purchase gas (£20m every day)  Why import from countries with questionable regulation and human rights records when we can produce our own gas? www.ineosshale.com www.ineosshale.com

Click to edit Master title style Geological Review & Surface Management How is INEOS planning to evaluate the potential of economically producing gas from new and existing licenses?  Click to edit Master text styles Mid/Late July 2017  Second level Mid 2018 Early 2019 Late 2018 2020 2019  Third level • Fourth level • Fifth level www.ineosshale.com www.ineosshale.com

Click to edit Master title style Seismic data acquisition Vibroseis trucks and receivers (geophones) 2D Seismic image  Click to edit Master text styles  Second level  Third level • Fourth level • Fifth level 3D Seismic image Tractor mounted drill www.ineosshale.com www.ineosshale.com

Click to edit Master title style Stages of Site Development – Drilling  Click to edit Master text styles  Second level  Third level • Fourth level • Fifth level www.ineosshale.com www.ineosshale.com

Click to edit Master title style Stages of Site Development - Hydraulic Fracturing  Click to edit Master text styles  Second level  Third level • Fourth level • Fifth level www.ineosshale.com www.ineosshale.com

Click to edit Master title style Stages of Site Development - Production  Click to edit Master text styles  Second level  Third level • Fourth level • Fifth level www.ineosshale.com www.ineosshale.com

Click to edit Master title style UK four-well gas production site – aerial view  Click to edit Master text styles  Second level  Third level • Fourth level • Fifth level www.ineosshale.com www.ineosshale.com

Click to edit Master title style UK four-well gas production site – ground level view  Click to edit Master text styles  Second level  Third level • Fourth level • Fifth level www.ineosshale.com www.ineosshale.com

Click to edit Master title style A common concern - Well Spacing  Click to edit Master text styles  Second level  Third level • Fourth level • Fifth level www.ineosshale.com www.ineosshale.com

Click to edit Master title style  Click to edit Master text styles  Second level  Third level • Fourth level • Fifth level What are the objections? www.ineosshale.com www.ineosshale.com

Click to edit Master title style Objections  Click to edit Master text styles "Fossil fuels are bad for the climate.  Second level  Third level • Fourth level • Fifth level We should be developing renewables instead. Starting a new fossil fuel industry at this point is going to further exacerbate climate change" www.ineosshale.com www.ineosshale.com

Click to edit Master title style Gas vs Renewables?  84% of UK homes use gas for heating (61% for cooking)  Click to edit Master text styles   Second level To electrify these for renewable use will cost over £250b and take several decades  Third level  • Fourth level To do this by 2050 means converting nearly 2000 homes every single day • Fifth level  Plus upgrades to the national power infrastructure to supply these homes  In the future, gas could produce hydrogen by steam reforming, with the CO 2 captured and sequestered  The hydrogen would be distributed via the existing gas network This is not a gas vs renewables debate - we need both www.ineosshale.com www.ineosshale.com

Click to edit Master title style What is the climate performance of gas?  Locally produced shale gas has over 10% less lifecycle greenhouse  Click to edit Master text styles gas emissions than imported gas  Second level  Third level  Locally produced shale gas has less than half the greenhouse gas • Fourth level emissions of coal for power production • Fifth level We need gas, today we import >50%, and this is forecast to increase to 80% by 2035 The question is not whether we need gas, but where will it come from? www.ineosshale.com www.ineosshale.com

Click to edit Master title style Objections  Click to edit Master text styles "Fracking risks causing water contamination, and uses  Second level cancer causing chemicals  Third level • Fourth level • Fifth level The US has seen many examples of this" www.ineosshale.com www.ineosshale.com

Click to edit Master title style Has fracking caused such water contamination in the US?  There have been some incidences of contamination in the US caused by  Click to edit Master text styles the failure of wells - that is, failure of the wellbore integrity as it passes through the shallow aquifer layer  Second level  Third level • Fourth level  UK regulations are amongst the most stringent in the world, and include; • Fifth level  Multiple well casing layers with interbedded cement, with design signed off by the regulator and an independent well examiner  Baseline water testing for 12 months before fracturing  Continued monitoring during operations and production  All chemicals used in the fracturing process must be approved as non-hazardous to groundwater by the EA  There have been no known contamination incidents in shallow aquifers caused by migration from hydraulic fracturing of deep shales www.ineosshale.com www.ineosshale.com

Click to edit Master title style Well Integrity  Click to edit Master text styles  Second level  Third level • Fourth level • Fifth level www.ineosshale.com www.ineosshale.com

Click to edit Master title style Objections  Click to edit Master text styles "Fracking risks causing seismic activity  Second level  Third level • Fourth level • Fifth level This was seen in 2 UK wells in Lancashire in 2011 There has been a huge increase recently in tremors in Oklahoma associated with fracking" www.ineosshale.com www.ineosshale.com