Separating Rhetoric from Reality – Part II (cont’d)
integrity of the casing barrier. BC was the first jurisdiction
to implement fracking fluid disclosure.
In terms of quantity, less than 1% of the annual water
supply available in the region is used for fracking. Of this,
a growing percentage is recycled, with nonpotable sources largely being re-injected in
deep reservoirs as per the regulatory standards
that have ensured no aquifer contamination.
However, as LNG development stimulates an increase in
upstream activity, water management and planning will
become more important considerations. Appropriately,
BC’s new Water Sustainability Act provides for better
groundwater regulation. This will be a key step in making
what is already a high-quality regulatory framework even
more effective – allowing for continuous improvements
as the sector grows.
Methane Leakage
There is a growing discussion regarding the
extent to which methane leakage from shale
gas drilling negates the significant CO2 benefits
of burning natural gas versus both oil and coal.
What is not debatable is that methane leakage does occur,
and that above a certain percentage of leakage (roughly
4-6%), the benefits of natural gas can largely disappear
in comparison to the use of other fossil fuels from a GHG
emissions perspective.
Leakage rates reported in the United States are significantly
below the inflection point. With a leading-edge regulatory
regime in place, there is no reason to believe BC’s shale gas
drilling programs would have significantly higher leakages.
There are a (small) number of ‘super leaker’ wells that can
skew the data. These sites are anomalies. A focus on the
right technology and regulatory activities on these sites is
important; but such sites are not commonly found in BC.
Nevertheless, since methane is more potent than CO2 as
a GHG, methane leakage is an issue worthy of attention.
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I N D U S T R Y U P D AT E
Fortunately, there is a convergence of incentives to
continue improving outcomes since methane leakage
directly reduces the volume of natural gas available to sell.
This provides an economic signal to both companies and
government to act to limit leaks. On a net life-cycle basis,
LNG does produce significant climate change benefits.
Seismic Activities — Earthquakes
Scientific analysis in the US and Canada has shown that
fracking processes can stimulate minor seismic activities.
On rare occasions, based largely on poor site selection for
waste-water storage, a few jurisdictions have recorded
small-scale seismic events.
The BC Oil and Gas Commission’s review
of seismic activity related to shale gas
development found that some minor seismic
activity was induced by fracturing. The report
found no human injury or property/infrastructure damage
from these events.
Research indicates that fracking-induced seismic activity
is rare and minor in nature, and the potential for more
significant induced seismic events can be eliminated
through effective planning.
While there may be a general impression that those
involved in the fracking process are indiscriminately
injecting materials into the earth to crack the shale and
release the gas, this is incorrect. In fact, the extraction
process requires precision, and work in this area has led
to more innovation and a new field of study in the sector
called micro seismicity.
Cumulative Impacts
Another LNG-related area of environmental concern is
cumulative impacts. If LNG development moves ahead,
there would be a substantial increase in industrial activity
in northeastern BC and at proposed LNG facility locations
on the coast.