US energy firms must take lead to address shale gas concerns

06 March 2012 03:44  [Source: ICIS news]

HOUSTON (ICIS)--Environmental and health concerns over production of non-conventional natural gas will have to be addressed by the producers themselves, as these public concerns could delay or even halt ongoing projects, a US government official said on Monday.

At the CERAWeek 2012, John Deutch – chairman of the US advisory board on shale gas production – said that the responsibility to placate public concerns lies more on the shale gas producers, rather than the regulators.

Deutch’s group – The Secretary of Energy Advisory Board Subcommittee (SEAB) on shale gas production – came up with a list of 20 recommendations on how to improve the safety and environmental record of producing shale gas.

The recommendations include a joint setting up of environmental guidelines that will govern shale gas production projects, by industry players and regulators, said Deutch.

It is also important that the environmental findings be shared to the public, he said.

If the hurdle of public concerns can be overcome to allow shale gas production to proceed smoothly, the US could have 100,000 shale-gas wells in the next 10-15 years, Deutch said.

"I believe that the only way it will happen is if industry steps forward and goes ahead of regulators," Deutch said.

Deutch said that increased shale gas production has improved the US’ trade balance and improved its energy security.

The advent of shale gas has also benefitted the North American petrochemical industry by providing it with cheap energy and feedstock natural gas liquids (NGLs), on which crackers have increasingly relied versus oil-based naphtha, thereby lowering the production cost for petrochemicals.

CERAWeek lasts through Friday.

By: Al Greenwood
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