Drill UK Drill - JOGMEC 石油・天然ガス資源情報

JOGMEC
K Y M C
JOGMEC London Office
Oil & Gas Researcher
Dulee Ozawa
アナリシス
Drill UK Drill
（Prim and Properly Please....）
はじめに
米国のようなシェールガス革命は、欧州では起きないであろうとの見方が広く報告されているが、英
国政府や企業は、シェールガス開発に前向きに取り組んでいる。英国では、主に 3 カ所に有望なシェー
ル層が分布しており、英国地質調査所（British Geological Survey）によると、中部 Bowland-Hodder 地
域では 8 2 2 ～ 2,2 8 1Tcf のガス、南部の Weald Basin では 2.2 0 ～ 8.5 7Bbbl の石油、北部の Midland
valley of Scotland では 4 9.4 ～ 1 3 4.6Tcf のガスと 3.2 ～ 1 1.2Bbbl の石油がそれぞれ賦存する（いずれも原
始埋蔵量）と評価されている。仮に、北米の回収率 8 ～ 2 0 ％で試算すると、Bowland-Hodder 地域だけ
でも、6 3.5 ～ 4 5 8.9Tcf の可採量が期待されることとなるが、これは、英領北海の残存可採ガス埋蔵量
5 2Tcf と比較しても大規模な量である。
政府は、企業が円滑に開発を進められるように、いくつかの制度を導入し始めた。しかし、環境活動
家や反資本主義的活動家などの影響により、地方自治体レベルでのシェール開発への理解がまだ十分に
得られていない。このため、開発は期待どおりには進展してないのが現状だ。一方、ポーランドでは、
ExxonMobil、Total、Chevron などが有望なシェール資源に注目して参入してきたが、技術的困難性や
厳しい税制により、既に撤退した。また、フランスでは 2 0 1 1 年から水圧破砕が禁止されているが、最近、
国会で、4 5 回の水圧破砕が安全に実施されている事例が報告された。ドイツでも、基本的には水圧破
砕が禁止されているが、最近、地下 3,0 0 0m 以深での水圧破砕が許可された。デンマークでは、2 0 1 2
年の水圧破砕禁止以降、
Total だけが開発の継続を許可されており、他の企業への拡大も議論されている。
上記のように、欧州では、北米のシェール革命のような革命的な進展を期待するのは難しいと言える。
しかし、革命的でなくとも、国民の理解を得た上で、技術革新などにより、安全かつ効率的なシェール
ガス開発を実現できる可能性はある。特に、英国は、このような取り組みにより、他の欧州諸国へのモ
デルとなり得る可能性を有しているのは事実である。
本稿では、シェール開発をめぐる米国と欧州との背景の違い、英国を中心としたシェールガス開発へ
の取り組み、政府の制度、英国モデルの実現可能性を考察してみたい。
Introduction
The verdict is in! According to many experts in the
industry is good at overcoming multiple challenges be
industry, there will be no shale gas revolution in
them political, technological, or environmental.
Europe before 2 0 2 0. And yet, the industry players and
the UK government are keen for shale gas
The biggest challenge faced in the shale industry
developments to take off. Why? Given the success in
today is most likely the lack of one! All over Europe,
the US, it is hard to ignore the benefits of a booming
there is not one single well that is producing shale gas
shale gas industry and coupled with the estimated gas
or oil. Although some drilling and testing have occurred
in place（GIP）numbers, why not be more enthusiastic
in Poland, geological complexities, disappointing flow
about shale gas? After all, if we have learned anything
rates and unfavourable tax regimes, have resulted in
from the oil and gas industry it is surely that the
most of the major operators to pull out of the region.
41 石油・天然ガスレビュー
Analysis_Ozawa.D.indd
41
2015/05/12
17:42:38
JOGMEC
K Y M C
アナリシス
With Poland now out of the dash for gas race, all eyes
the UK to build up a shale industry in the future（see
have been diverted to the UK where stringent
Table 1 ＊ 1 ＊ 2）. This paper will try to present the need
environmental requirements and hard-core
for a shale industry in the UK, outline the support
environmentalists and anti-capitalist movements have
shown by the government and point out the possible
always slowed down any large industrial activity in the
model for the shale gas drilling in the UK. However,
country, let alone an onshore drilling and fracking
before we venture further in to this topic, it is
project.
necessary to give a brief outline of the success story
that the United States（US）has produced, in order to
Despite the doom and gloom that surrounds shale
understand the benefits of the industry, and why even
gas developments in the UK, there is a good case for
a small scale revolution might be beneficial for Europe.
Solutions and/or recommendations to the potential challenges faced in
Table1 the shale industry in the UK, as mentioned in our previous reports ＊ 1 ＊ 2.
Potential problems for shale
developments identified in previous
reports ＊ 1, ＊ 2
Solutions or recommendations
Reference
Lack of drilling data
BGS is gathering data regarding the shale rock and
organic content from over 100 wells drilled for scientific
purposes. However, data from drilling, fracking and testing
the flow back rates are much needed.
http：//www.bgs.ac.uk/
research/energy/shaleGas/
bowlandShaleGas.html
Lack of drilling equipment
A report commissioned by UKOOG carried out by Ernst
and Young highlighted that the UK Shale gas could create
a new onshore supply chain market for equipment,
services and skills across a number of industry sectors.
The UK could also lead the way in technology and skills
across Europe, a significant and untapped market.
Recommendations were made to how to ensure that no
bottlenecks would be faced, if the shale industry takes off.
http：//www.ey.com/
Publication/vwLUAssets/
Getting_ready_for_UK_shale_
gas/$FILE/EY-Getting-readyfor-UK-shale-gas-April-2014.pdf
Ground water polution
Concerns about pollution of groundwater by fracking fluid
are largely based on reports of past practice in the US,
where well integreity were compromised and frack foluid
compositions were not divulged. In the UK, the regulators
will require full disclosure of chemicals used in fracking
fluid and they do not permit use of hazardous chemicals.
Provided that the regulator enforces this prohibition,
hydraulic fracturing fluid poses no risk to groundwater in
the UK.
http：//www.publications.
parliament.uk/pa/ld201314/
ldselect/ldeconaf/172/17210.
htm
Land owner does not have the rights to
the minerals found subsurface
Mineral rights remain to the crown, but some provisions
that benefit the community have been made to incentivise
drilling; at exploration stage, £100,000 in community
benefits per well-site and 1％ of revenues at production
will be paid out to communities.
https：//www.gov.uk/
government/policies/providingregulation-and-licensing-ofenergy-industries-andinfrastructure/supporting-pages/
developing-shale-gas-and-oil-inthe-uk
Regulation
A comprehensive guide and to regulation and monitoring
processes have been put forward by DECC, which
includes getting permission and meeting the requirements
of the DECC, EA, HSE and the local authority for
planning permission（see also Fig. 8）.
https：//www.gov.uk/
government/uploads/system/
uploads/attachment_data/
file/283834/Regulation_v3.pdf
Earth quakes
DECC introduced new controls and guidelines for
operators：use all available geological information to
assess the location of faults and avoid fracking near faults;
adopt a‘traffic light’system that controls whether
injection can proceed or not, based on that seismic
activity
https：//www.gov.uk/
government/uploads/system/
uploads/attachment_data/
file/283837/Seismic_v3.pdf
Environmental concerns
In 2012, the Royal Society concluded that“the health,
safety and environmental risks associated with hydraulic
fracturing can be managed effectively in the UK as long
as operational best practices are implemented and
enforced through regulation.”
https：//www.gov.uk/
government/uploads/system/
uploads/attachment_data/
file/256359/Publication_
RoyalSociety_2012-06-28Shale-gas.pdf
Public protests
In some deprived areas there are many locals who view
shale gas as a means to getting work. The main harm
done are the hard-core activist groups said to be funded
by Russian money, especially in Eastern Europe.
http：//www.ft.com/cms/
s/0/20201c36-f7db-11e3baf5-00144feabdc0.html
Experience Service industry
Source：Compiled from various sources given in the reference column.
2015.5 Vol.49 No.3 42
Analysis_Ozawa.D.indd
42
2015/05/12
17:42:38
JOGMEC
K Y M C
Drill UK Drill（Prim and Properly Please....）
1. The US success story
The drama and excitement that encompassed the US
seem to be unique to the US. Without these conditions
shale development brought with it huge benefits to the
a similar scale revolution is not possible anywhere in
country in terms of creating jobs, providing a positive
the world. Professor Paul Stevens of Chatham House
economic impact, security of energy supply, and most
clearly identifies these points in his paper
（see Table 2）
surprising of all the decrease in the CO2 emissions in
and compares the situation to the UK. Although the
the country. To put these in perspective, the Energy
chart documents numerous factors, the key aspects
Information Administration（EIA）reports that from the
that helped the US to face a revolution in the oil and
start of 2 0 0 7 through the end of 2 0 1 2, total US oil and
gas sector are attributed to 1）the land owner has the
natural gas industry increased by more than 1 6 2,0 0 0
rights to the minerals found underground, giving an
jobs, which is a remarkable 4 0 ％ increase, mostly
incentive to explore for potential resources, in fact,
＊3
. A
during the revolution the term“shaleionaires”was
study carried out by IHS concluded that gas production
coined for land owners who made their fortune by
in the unconventional sector, including tight gas and
selling drilling rights to private companies for a large
coal bed methane as well as shale gas, contributes
amount of money; 2）numerous E & P companies
more than $49 billion annually to government revenues,
almost rushed to drill in prospective areas creating a
attributed to the rapid shale industry growth
and will contribute $1 9 7 billion to US
gross domestic product by 2 0 1 5 ＊ 4. The
CO2 emissions in 2013 were 10％ below
their 2 0 0 5 level ＊5. All this was achieved
Bcf
7,994
industry which has seen production
5,336
levels increase from a mere 1.3Tcf in
2 0 0 7 to 11.4Tcf in 2 0 1 3（see Fig. 1）
.
1,293
Although the current oil price will see a
drop in the pace of production of shale
2007
2,116
2008
3,110
2009
U.S. Shale Production
2010
2011
2012
2013 y
Source：EIA website, http://www.eia.gov/dnav/ng/ng_prod_shalegas_s1_a.htm
oil and gas, EIA estimates that up to
50
11,415
10,371
by the rapid growth of the shale
Fig.1 U.S. Shale Production
％ of the US dry natural gas
production will be from shale deposits in
the US by 2 0 4 0（see Fig. 2）＊ 6. Over
the last five years, total gas production
40
Tcf
History
Projections
2012
in the US has grown by 2 5 ％ and oil
production by 6 0 ％ — an increase in
30
absolute terms of 3 million barrels per
day ＊ 7 . These are truly astounding
20
numbers of growth to consider and
begs the question—what factors and
conditions exactly led to this success?
T h e f a c t o r s a n d c o n d i t i o n s t h a t
marched the shale story to success
have been documented by many
authors, of which most of the elements
10
0
1990
2000
2010
2020
2030
2040 y
Source：EIA, http://www.eia.gov/forecasts/aeo/mt_naturalgas.cfm
Fig.2 Projections for shale production
43 石油・天然ガスレビュー
Analysis_Ozawa.D.indd
43
2015/05/12
17:42:39
JOGMEC
K Y M C
アナリシス
highly competitive environment that drove the speed
addition to the favourable conditions in the US for shale
of exploration leading it to its success – even the“mom
development, one should not forget the role that
& pop”sized companies attributed to this highly
technology played to make this success story possible.
competitive landscape
＊8
; 3）long history of onshore
In fact, the shale revolution is often referred to as an
drilling in the US meant that the public were already
“overnight sensation that took 3 0 years in the making”
familiar seeing drilling rigs and equipment scattered
is not without reason. The US government took early
around in their surroundings and it also meant that the
initiatives in the testing and the funding of fundamental
regulations were favourable for onshore drilling. In
research, creating the framework for early developers
to successfully apply the technology
（through much dedication, belief & grit）for
Factors creating the“shale gas
Table2 revolution”in the United States.
Necessary Conditions
the commercial extraction of shale gas（see
Box）. As Paul Steven says, the Shale
USA
UK
Favourable geology
Yes
??
Lots of drill core data to help identify "sweet spots"
Yes
No
Weak environmental regulation for fracking
Yes
No
the way for the US to drill an astounding
Tax credits + intagible drilling cost expensing
Yes
??
3 0,0 0 0 wells in just the four major shale
d e v e l o p m e n t s a r e a t r u e“t r i u m p h t o
technology.”All these key aspects paved
Mineral rights to the landowner
Yes
No
p l a y a r e a s（M a r c e l l u s , H a y e s v i l l e ,
Pipeline accees easy - large network + common carriage
Yes
??
Fayetteville, and Barnett）in a very short
Selling gas into a "commodity supply" market very easy
Yes
??
Driven by small entrepreneurial companies
Yes
??
period of time. The United States has been
Dynamic and competitive service industry
Yes
No
People familiar with and accepting of oil & gas operations
Yes
No
Licensing large area with vague work programs
Yes
No
Significant government investment in basic R&D
Yes
No
achievements may not be replicated at this
High Liquids contet in the gas
Yes
??
scale in the UK and elsewhere in Europe,
the world's top producer of petroleum and
natural gas since 2 0 1 2, surpassing Russia
and Saudi Arabia ＊ 9 . These astounding
Started by rising prices
Yes
??
but even a small scale replication in Europe
Access to risk capital on a large scale
Yes
No
Easy access to water
Yes
Yes
could still prove to be advantageous to the
Easy access to futures markets to hedge prices
Yes
??
Source：Adapted from a conference presentation delivered by Prof Paul Stevens,
Chatham House.
region in terms of job creation, tax revenues
and boosting the economy.
Box Father of frackng：G. Mitchell
・The father of fracking, George Mitchell, was the embodiment of the American dream. Mr Mitchell had to work his way
through university, but graduated top of his class. He left a fortune of more than $2 billion and a Texas landscape
studded with examples of his philanthropy.
・He started injecting high-pressure fluids into the ground to fracture the rock and create pathways for the trapped oil
and gas（fracking）and drilling down and then sideways to increase each well’s yield（horizontal drilling）.
・Fracking; was first tried in the late 1940s and helped along by Department of Energy research in the 1970s. During
the 1980s and early 1990s, Mitchell Energy drilled well after well, many of whose sites were determined personally
by Mitchell, for 15 years, the company struggled to show that its fracking could produce reliable and economical gas.
・Running out of funds to keep drilling, an employee decided to substitute water for the more expensive silicone mixture
being used. The process worked and in 1997 established that fracking could prove financially viable over the long
term.
・Not long after, Mitchell sold his company for $3.5 billion. By then, fracking was on its way to resurrecting America’
s
oil-and-gas industry.
・New horizontal drilling techniques made shale gas wells even more productive, and by 2012, shale gas accounted for
about 35 percent of the country’s natural-gas production.
Source：NY Times
2015.5 Vol.49 No.3 44
Analysis_Ozawa.D.indd
44
2015/05/12
17:42:39
JOGMEC
K Y M C
Drill UK Drill（Prim and Properly Please....）
2. UK’s need for gas
Historically, UK was mostly dependent on a coal and
very costly, and all costs would inevitably be at the
oil based energy mix, but with the discovery of the
expense of the energy user. Furthermore, the energy
offshore gas fields in the North Sea, gas has become a
from renewable sources are intermittent which means
significant component in the energy mix（see Fig. 3）.
cheaper coal fired plants are substituted to generate
Since 1 9 7 0, gas consumption has grown from 1 4.4
electricity during peak time, which in the end results in
million tonnes of oil equivalent（mtoe）to 4 7.1 mtoe in
the increase of greenhouse gasses, something that has
2 0 1 2. Gas currently provides heat to more than 8 0 ％
occurred in Germany already.
of the UK homes. Although the overall demand for
energy is decreasing in the UK, due
to increased energy efficiency and
less demand from energy intensive
industries, the baseline need for
energy is still quite significant. The
North Sea is a mature field, and
production is at an all-time low. The
UK energy policy therefore needs to
accommodate the void created by the
lack of sufficient domestic production.
The void in energy is being met by
developing renewable resources and
％
100
90
80
70
60
50
40
30
also by increasing imports, both of
20
which exposes UK to various risks.
10
0
1970
The UK policy for decarbonising
requires UK to cut carbon emissions
by 8 0 ％ by 2 0 5 0. As a result, the UK
1980
Solid fuels
Bioenergy and waste
1990
2000
2010
2013
y
Petroleum
Gas
Primary electricity（including renewable electricity）
Source：DECC, ECUK Table 1.02
Total primary energy consumption
Fig.3 by fuel, UK, 1970 to 2013
energy policy aims to allow energy
from renewables to make up 4 0 ％ of
the overall energy mix by 2 0 3 0 ＊ 1 0.
Although UK has made significant
progress in increasing renewables,
mainly in the offshore and onshore
wind, solar and bioenergy, in the
35,000
30,000
25,000
generation of electricity, it is nowhere
20,000
near the 4 0 ％ share in the total
15,000
energy mix
（see Fig. 4）
. Furthermore,
10,000
the targets for renewables does not
5,000
come cost free. Renewable energy
plants, although cheap to run they are
expensive to build, in addition to
which updating the grid to
accommodate the extra energy is also
Thousand tonnes of oil equivalent
0
2013
2015
2020
2025
2030 y
Source：http://futureenergysavings.co.uk/the-uk-energy-mix-where-our-power-comesfrom/
Fig.4 Future of energy mix in electricity
45 石油・天然ガスレビュー
Analysis_Ozawa.D.indd
45
2015/05/12
17:42:39
JOGMEC
K Y M C
アナリシス
In the past, the North Sea production provided more
is always subjected to being a potential hostage to
than the domestic demand and went through a stage
politics. Although the UK does not import gas from
as net exporters of gas; however, more than 6 0 ％ of
Russia directly, apparently 6 ％ of the gas exported
the gas used today is imported from various regions
from Russia ends up in the UK（see Fig. 6）
＊ 11
.
（see Fig. 5）. Although UK has relatively good access
Furthermore, it is also reported that disruptions in
to foreign gas from various producing countries（see
Russian exports to Europe would limit the supply of
Fig. 5）, it is not completely insulated against price
the stocks available which would inevitably drive
volatility due to potential new geopolitical events or
prices of pipeline gas and LNG significantly higher ＊ 1 2.
other changes in the market, such a high prices in
Implications of the Department for Energy and Climate
Asia. Continental Europe imports 8 9 ％ of Europe’s
Change（DECC）reports that an unconventional onshore
annual gas demand. Overall, Gazprom supplies 3 0 ％ of
production could mitigate the risks faced by price
Europe’s gas, but in many eastern states the reliance
volatility and geopolitical factors, and also help reduce
is closer to 1 0 0 ％ . Since almost half of Europe’s
carbon emissions by switching from coal to gas in our
imports from Russia flow through Ukraine, this supply
energy mix.
Domestic
production
Norway
Germany,
Eastern Europe,
Other Western Europe,
Turkey,
Other
United
Kingdom,
Belgium
Qatar
（LNG）
France,
Netherlands
Italy,
Note：Domestic consumption ＝ total UK production-exports
Source：EIA, http://www.eia.gov/countries/cab.cfm?fips=uk
Source：EIA website, http://www.eia.gov/countries/cab.cfm?fips=rs
UK receives 6% of gas
Fig.5 UK energy supply 2013
Fig.6 exported from Russia
3. UK’s potential for shale gas
The initial estimates of UK shale were highly
series of publications from the BGS commissioned by
variable, 5.3Tcf in the Bowland basin – British
DECC have now confirmed the gas in place（GIP）
Geological Survey（BGS）; 2 6.1Tcf in the UK – EIA;
numbers for the three key areas of shale formations.
2 1 2Tcf in their licensed blocks alone – Cuadrilla, which
According to the June 2 0 1 3 BGS report on Bowland-
prompted the BGS to revaluate their estimations
＊7
. A
Hodder shales in central Britain, it has between 8 2 2 –
2015.5 Vol.49 No.3 46
Analysis_Ozawa.D.indd
46
2015/05/12
17:42:39
JOGMEC
K Y M C
Drill UK Drill（Prim and Properly Please....）
2 2 8 1Tcf GIP, with central estimates of 1,3 0 0Tcf. The
To put these estimates in context, the UK’
s remaining
Jurassic shale in the Weald Basin in Southeast England
potentially recoverable conventional gas resources are
has potential for shale oil, between 2.2 0 – 8.5 7 Bbbl,
5 2Tcf and annual UK gas consumption is 2.7Tcf ＊1 3.
with central estimates of 4.4bbl of oil in place（OIP）, as
Despite all these positive accounts of estimation, until
reported in May 2 0 1 4. Finally, the report on the
there is solid evidence from drilling exploration wells,
carboniferous shale of the midland valley in Scotland
fracking them, and testing their flow back rates, it will
published in June 2 0 1 4, suggests GIP between 4 9.4 –
not be clear if the commercial exploitation of shale is
1 3 4.6Tcf, with central estimates at 8 0.3Tcf and OIP
even viable. For the time being it seems that the
between 3.2–1 1.2 Bbbl, with central estimates at 6 bbl.
potential numbers of GIP are large enough for the
Assuming a North American recovery factor of around
government to back various legislations in order to
8-2 0 ％ ,this would indicate potentially recoverable
create the right frame work for the safe and
resources of 6 3.5 – 4 5 8.9Tcf in the Bowland shale alone.
responsible exploration work.
4. Governmental support
Ever since the drilling activity of Caudrilla caused
shale for the North and other areas hosting shale gas
two small earthquakes in April and May of 2 0 1 1,（the
developments. In January 2 0 1 5, the Government
company imposed a self-moratorium for fracking which
passed provisions in the Infrastructure Bill to simplify
was followed by the government to ban fracking in
procedures by which the onshore oil and gas and deep
N o v e m b e r 2 0 1 1）b o t h t h e g o v e r n m e n t a n d t h e
geothermal industries obtain underground drilling
industry commissioned a huge number of studies
access 3 0 0 metres or more below the surface ＊ 1 5. The
regarding the safety of fracking and the potential of
benefits of a booming shale industry were reported in a
shale gas. Since then, the ban was lifted in December
study carried out by the Institute of Directors in May
2012 and some coordination of regulation was
2 0 1 3, which suggested that shale gas production in the
witnessed. Since these initial attempts to better
UK could support up to 74,000 jobs and attract
regulate the industry, the government has shown their
investment of £3.7 billion a year, as well as associated
full support by putting together the current system for
tax revenue, and much of this investment would be in
regulation and monitoring（see Fig. 7）. Furthermore,
areas with high levels of unemployment ＊ 1 6. With the
in January 2 0 1 4, David Cameron announced that local
stakes so high, it is no wonder that there is a big push
councils will keep 1 0 0 per cent of business rates from
from the central government to“go all out for shale”
;
＊14
.
however, the local authorities, from whom the operator
Additionally, the industry has committed to pledging
needs to get approval before any drilling occurs, have
£100,000 for communities situated near each
been reluctant to commit. Just recently, an application
exploratory（hydraulically fracked）well, and 1 ％ of
by Cuadrilla to commence drilling activity at two
revenues from every production site to go to the local
locations in Lancashire, detailing all aspects of the
council. In autumn 2 0 1 4, the chancellor announced a
drilling which comprised of a report that reached 4 0 0 0
range of measures to encourage a shale gas industry in
pages long ＊ 1 7 was rejected by the local authority due
the UK. These included a £5 million fund to provide
to unsuitable noise and traffic levels. Moreover, another
independent evidence on the robustness of the existing
application to carry out seismic and pressure
regulatory regime, £31 million of funding to create sub-
monitoring in Grange Hill well, after which the well
surface research centres and the setting up of a long-
was to have been plugged and restored to greenfield
term investment fund from tax revenues derived from
status was also rejected by the Lancashire council on
shale gas sites, double the 5 0 ％ previously received
47 石油・天然ガスレビュー
Analysis_Ozawa.D.indd
47
2015/05/12
17:42:39
JOGMEC
K Y M C
アナリシス
DECC issues a Petroleum and
Exploratory Development
Licence (PEDL)
Operator carries out
Environmental Risk
Assessment
Operator engages in preapplication discussion with local
communities, mineral planning
authorities, and statutory
consulates (EA , Natural England
and English Heritage)
Mineral Planning Authority
screens for Environmental
Impact Assessment
Operator undertakes
Environmental Risk
Assessment
Views of Statutory
Consultees and local
communities sought
Operator submits Planning
Application
Operator applies for
environmental permits
Mineral Planning Authority
validates, advertises and consults
on application and any
Environmental Statement
EA issues
environmental
permits
Mineral Planning Authority
decides application. Imposes
planning conditions
Operator notiﬁes HSE
Operator notiﬁes EA of
intent to drill under
the Water Resource
Act 1991
DECC Well Consent Granted
BGS Informed and Coal
Authority consulted (if
needed)
Operators drill well
Site restoration and
Post abandonment
monitoring for deﬁned
period
Operators abandons well
Operator submits
copies of data to the
BGS
Source：https://www.taskforceonshalegas.uk/reports
Fig.7 Streamlined regulation and monitoring bodies.
t h e g r o u n d s t h a t“i t c o n s i d e r e d t h e
application to be contrary to policies in the
development plan. ＊ 1 8”Many experts in the
industry feel that these are deliberate
moves by the Lancashire council to try and
block shale developments in any way
p o s s i b l e＊ 18 ＊ 19 . O n e c a n o n l y w o n d e r
whether the authorities are reacting to the
strong public protests organised by“militant
g r e e n a c t i v i s t”a n d“n e w - a g e a n t i capitalists”. Since the attempts to develop
the shale industry in the UK, there have been
swoons of activist groups pop up around the
nation, with more than 2 0 0 groups to date;
however the most vocal and damaging
activists tend to not live in the locality.
Instead, it is the high profile opportunists
such as Dame Vivienne Westwood（fashion
designer）and the like that seem to cause
more damage than good（see Fig. 8）.
Source：http://www.konbini.com/en/lifestyle/vivienne-westwood-sends-frackingwarning-david-cameron/
Dame Vivienne Westwood(fashion designer)
Fig.8 protesting against shale.
2015.5 Vol.49 No.3 48
Analysis_Ozawa.D.indd
48
2015/05/12
17:42:39
JOGMEC
K Y M C
Drill UK Drill（Prim and Properly Please....）
5. Made in the UK
With all the fuss and hype that surrounds shale gas,
current UK mind-set. There are two factors that
one would think that there had never been any history
helped Wytch Farm develop into what we see today：
for onshore drilling or any form of fracking in the UK.
1）lack of stringent regulation and 2）lack of hard-core
In reality however, the onshore oil and gas industry in
anti-capitalist and green movements. However, even
the UK has been in existence for over 1 5 0 years. There
without stringent regulation and opinions from green
are around 2,0 0 0 wells that have been drilled of which
movements, the oil field has hardly seen in major
200 wells have been hydraulically fractured in one way
incidents or compromised any health and safety issues
＊ 20
. In the UK today, there are 1 2 0 sites
in the 4 0 years of operation - a triumph to the industry
with 2 5 0 operating wells producing between 2 0,0 0 0
and their work ethic. The presence of Wytch Farm
or another
＊20
. What is
gives us hope that future shale developments could
even more surprising is that UK is home to the largest
follow a similar model, albeit in different economic and
onshore oilfield in Western Europe, Wytch Farm.
political conditions. Despite its similarities, there are
Established in 1 9 7 3 by the then nationalised BG who
stark differences between Wytch Farm and a potential
sold it to BP as part of its privatization process in
shale well pad. At a shale well pad, there will be a
1 9 8 4, and is now operated by Perenco since 2 0 1 1. In
period of high intensity drilling and fracking, which
1 9 9 7, BP completed a record breaking extended reach
would go on for 1 2-1 8 months depending on the
well of 1 0km, where they drilled from onshore to an
number of wells being drilled from a single well pad.
offshore site under the Poole Harbour, just off Europe’
s
But once the production stage is established, visual
4th most expensive real estate area, Sandbanks.
appearance of the pad would be restored to a
Furthermore, there are more than 1 0 0 wells（including
greenfield status with only a few structures protruding
producers and water injectors）being operated from the
from the ground, whereas Wytch Farm itself looks like
and 2 5,0 0 0 barrels of oil equivalent a day
（much like a
large industrial site（see Fig. 9）. In comparison, a
potential shale drilling site – shale pad）
, which itself is
shale pad in production looks much more pleasing than
surrounded by a forest, situated in an area classified as
a conventional rig that looks like a huge industrial site
an Area of Outstanding Natural Beauty（AONB）.All of
remaining for a decades.
Wytch Farm oilfield as of June 2 0 1 2
＊21
which sounds absolutely impossible to achieve in the
(i) West Virginia Shale Gas Pad – Drilling Phase
(ii) Same Pad, production Phase
Source：
（i）&（ii）courtesy of Howard Rogers ＊8
Fig.9 Visuals of Shale drilling pads and conventional drilling rig, Wytch Farm.
49 石油・天然ガスレビュー
Analysis_Ozawa.D.indd
49
2015/05/12
17:42:41
JOGMEC
K Y M C
アナリシス
6. The model for shale gas
In order for shale production to occur in the UK and
not need. Nevertheless it is true; UK has the best
elsewhere in Europe, it is important to note that
framework for safe, organised, straightforward
implementing a US style fracking model is not going to
development. Apparently in some Eastern European
be possible. Nevertheless, there is also much to be
countries, the laws are interpreted in 1 0 different ways
learned from the US experience, for example,
by 1 0 different people, which make it a very difficult
implementing more accurate sweet spot targeting in
place to establish an industry.
order to limit the number of wells being drilled and
thereby limiting the above ground disturbance. Since
Attributing to the above reasons, the UK shale
the development of shale technology, many industry
industry has seen encouraging signs in the past few
players have become better at targeting the sweet
years, not by successful drilling, but by the vote of
spots through extensive data collection and analysis.
confidence by investors. In June 2013 Centrica
Much planning must occur for where the pad can be
acquired a 2 5 ％ stake in Cuadrilla’
s exploration licence
placed, and maximum number of wells must be drilled
in Lancashire; Total gained 4 0 ％ interest in IGas’
s two
from one pad. Since the shale formation of the UK
shale gas exploration licences in Lincolnshire ＊ 2 3 and
shale is 10 times thicker than it is in the US,
GDFSuez bought a 2 5 ％ share in Dart Energy’
s 13
multilateral wells could be implemented so that the
onshore licences for £7.4m ＊ 2 4. These encouraging signs
number of well pads can be kept to a minimum. A
however are sadly hindered by the lack of drilling
Wytch Farm type model would be an ideal solution for
activity in the UK. It has been nearly three years since
the development of shale when there’
s a limited area
the first well that was fracked, but no new wells have
of land to drill on.
been fracked and tested to date. In the meantime, the
operators are incurring huge costs in preparing reports
Furthermore, UK having clear and transparent rules
for various regulators and spending much of their time
and regulations, strongest environmental controls, easy
and energy trying to educate the public on onshore
access to data that do not need to be translated into
drilling and shale gas activity. Furthermore, UK
English and being at the heart of a major financial
developments hang in limbo as it awaits the direction
centre, all form a strong case for the UK to take the
the industry would take with a labour government, if
lead in the quest of shale gas extraction. Of course,
they win in the upcoming general elections in May this
more can be done to improve the industry, such as
year. In order for the shale industry to really take off
introducing a new regulator that would assume all the
in the UK,“we need to be lucky in the first five
duties regarding onshore oil and gas regulations, which
exploration wells. We need good flow rates”– Howard
are fragmented among DECC, Environmental Agency
Rodgers, a senior researcher at Oxford Institute for
（EA）, and the Health and Safety Executive（HSE）, as
Energy Studies（OIES）. Meanwhile, Scotland has
well as local authorities（see Fig. 7）which was
imposed fracking moratoriums ＊ 2 5 and Wales is trying
recommended by former chief of the EA, Lord Smith,
to follow suit ＊ 2 6 . Nevertheless, the industry awaits
who heads the Task Force On Shale Gas ＊ 2 2. However,
eagerly for the results from the much talked of 1 4th
implementing such a body would probably take two
licensing rounds that closed applications in October
years to establish, another delay the industry would
2 0 1 4.
2015.5 Vol.49 No.3 50
Analysis_Ozawa.D.indd
50
2015/05/12
17:42:41
JOGMEC
K Y M C
Drill UK Drill（Prim and Properly Please....）
7. The rest of Europe
The European Union has enough gas trapped in
Poland with its large resources in place, huge
shale to free their reliance on Russian energy supplies
governmental support, keen interest from the locals,
for about 2 8 years, but for now it seems that energy
large investments by major players such as Chevron,
security is not the top priority for the EU nations, but
Marathon Oil, Exxon Mobil, Total and ENI, was the
rather it is to wipe out of the dependency on fossil
front runner in the European race for shale and has
f u el s - an EU mant ra t hat on t he c o n t r a r ily h a s
seen the most number of wells being drilled, fracked,
encouraged the use of a more dirty fossil fuel, cheap
and tested in the region（see Tables 3 ＆ 4）. However,
coal. Shale gas development efforts in Europe have
recent disappointments on the flow rates, difficult
faced much disappointment in the past few years. But
geology, and incorporative tax regime, have resulted in
although all eyes are on the UK for the next move in
almost all the majors pulling out of Poland ＊ 2 9. Despite
the shale race, other nations in Europe are more
these setbacks, the fact is that 9 0 ％ of Poland’
s
advanced in the stage of development（see Table 3）.
electricity comes from coal. Poland is required to
switch to a cleaner resource in order to meet the
France, although having the highest potential in
European Commission’
s carbon emission standards.
shale gas resources in place in Western Europe, a
The government has also implemented new laws and
fracking moratorium has been in place since 2 0 1 1.
regulations that are more favourable to operate in;
France derives most of its energy from nuclear power,
however, the outcomes of these are yet to be seen. In
up to 7 5 ％ , and is often faced with excess energy,
Denmark, the US Geological Survey suggested that
which is inevitably used to power electric cars.
there were 2.5Tcf of onshore gas resources in the
However, in September 2 0 1 2, president Hollande
Alum Shale. Although the government issued a
pledged to cut France’
s nuclear share to 5 0 ％ leaving
moratorium on fracking in 2 0 1 2, Total is allowed to
the question open, as to how France would fill the void.
continue with exploration in Jutland and Zealand, and
Recent activity within France leads one to believe that
has plans to carry out test drilling this year ＊ 3 0 .
France might be warming up to shale – a report from
Depending on these results and coupled with the
the parliamentary Office for the Evaluation of Scientific
experiences in other respective countries, Denmark
and Technological Choices（OPECST）supported the
will decided whether they are to remove the fracking
shale gas exploration activity
highlighting that fracking has
been used in France 4 5 times
without harmful consequences
t o t h e e n v i r o n m e n t＊
27
Active countries of the European Union in the
Table3 unconventional gas exploration, including coal
.
Germany has taken a very
bed methane and shale.
No. of wells
No. of wells fracked
No. of concessions
Denmark
1
-
2
Germany
6
1
151
Hungary
8
6
18
has recently passed a bill to
Romania
3
3
18
allow fracking at depths more
Poland
92
41
48
than 3,0 0 0 meters. The shale
Slovenia
1
-
1
industry groups have
Sweden
37
-
47
43
1
188
cautious approach to shale and
had imposed a de facto
moratorium since 2 0 1 1 but
welcomed the move, but this
has also sparked outrage
among environmentalists ＊ 2 8.
Country
＊
United Kingdom
＊：Please note that due to local geology in Sweden, wells are very shallow (150m - 350m) and that
hydraulic fracking is not needed.
Source：Provided by Clean tech, Poland LLC, please refer to [email protected] or (+48)
883 307 160 for further details.
51 石油・天然ガスレビュー
Analysis_Ozawa.D.indd
51
2015/05/12
17:42:41
JOGMEC
K Y M C
アナリシス
Active companies of the European Union
Table4 in the unconventional gas exploration.
Explorers activity in EU-28 between Q4 2014 and Q1 2015
Country of Operation
Total concessions（change）
New Wells
INEOS Upstream
UK
9（+7）
-
Gripen Oil&Gas
SE
23（+1）
-
Orlen Upstream
PL
9
1
Palomar Natural Resources
PL
4
1
AB Igrene
SE
25
-
Ascent Resources
SK
1
-
BASF - Wintershall Holding
GmbH
DE
9
-
Company
PL
3
-
PL, UK, NL
7
-
UK
35
-
DE,（PL）
18
-
GDF Suez SA
DE, UK
28
-
Hutton Energy
UK,（PL）
4
-
Nordsøfonden
DK
2
-
Shesa
ES
5
-
Total
DK, UK
5
-
PL, ES,（DE）
4（-1）
-
PL, ES,（DE）,（SK）
15（-1）
-
PL
10（-2）
-
UK, DE
62（-7）
-
（RO）,（PL）,（LT）
0（-8）
-
ConocoPhillips
Cuadrilla Resources
Egdon Resources
ExxonMobil
BNK Petroleum Inc
San Leon Energy Plc
PGNiG
IGas
Chevron
Note：Concessions are decreasing mainly in Poland were some operators abounded exploration activities.
Source：Provided by Clean tech, Poland LLC, please refer to [email protected] or (+48) 883 307
160 for further details.
ban or not ＊ 3 1 Denmark is said to be energy self-
funded and aided by the Russian intelligence agencies
sufficient for another 1 0 years, but are looking to boost
in order to maintain European dependence on Russian
domestic production, which includes shale gas.
gas ＊ 3 2 . Such protest activities have caused many
Furthermore, according to Nato’
s secretary general,
delays in the development of the projects and
most of the protests carried out throughout Europe,
sometimes led to majors leaving the area. This was the
especially in Eastern Europe, are said to be handsomely
case for Chevron leaving Romania.
Conclusion
A s w e c a n s e e , E u r o p e h a s s e e n m u c h
Howard Rogers, a senior researcher at OIES,“What is
disappointment with respect to shale activity in the
needed for a US-style shale gas success is a）good
past few years. The sentiment for shale in Europe is
geology b）a regulatory and planning system which
clear, there will be no US-type revolution and it will
allows quick decision-making and c）many upstream
not be a game-changer in the UK. According to Prof
players and service companies moving quickly onto
2015.5 Vol.49 No.3 52
Analysis_Ozawa.D.indd
52
2015/05/12
17:42:41
JOGMEC
K Y M C
Drill UK Drill（Prim and Properly Please....）
shale plays and drilling many wells to find the‘sweet-
neighbourhood. Public engagement is something that
spots’and optimise drilling and completion techniques.
many operators omitted to do in the US and have now
For the UK the slow pace of b）and c）may prevent
resulted in bad representation of the industry. Limited
success”. For now, this seems like the sad truth in the
land area for drilling purposes also means that the UK
UK and other parts of Europe.
would need to increase the number of wells per pad in
every way possible, a form of which is already ongoing
Yet, the fact is, UK and the rest of Europe really
at Wytch Farm, albeit a conventional oil field. UK is
could do with a little boost in domestic production which
therefore creating its own unique approach to shale
could invigorate the economy, bring down CO2 emissions,
exploration, which the rest of Europe could consider as
provide security of supply, and most of all provide jobs
a base model for their own developments.
to its people. Even if a US-type revolution will not take
place in Europe, Europe could still benefit with even just
We also need to remember that European shale has
a slow revolution towards shale developments under the
turned out to be more geologically complicated than
conditions for the safe exploitation of the resource.
expected. Technology that worked in the US does not
seem to be fit for their application in Europe. There is
Currently, UK is leading the way forward to safe
very little known about the shales in different areas,
and mindful exploration; albeit the activities of prolific
such as their form, how they vary, and how they
green and anti-capitalist movements affect the speed
behave when fracked. It is therefore integral that
of the developments both directly and indirectly.
country based research should be well funded in order
Despite what the protestors think, UK’
s DECC, EA,
to facilitate the next technological innovation in the
and HSE are all working together to regulate the
industry. Such research will take time, money and
onshore exploration for shale gas as safely as possible.
effort, and with the current oil-price environment,
It is important to note that with these regimes in
expenditure on such fundamental research will not be
place, the UK shale gas exploration is ensuring that
carried out by the industry players.
the problems faced in the US regarding the
I t i s t h e r e f o r e u p t o t h e c e n t r a l a n d l o c a l
environment are not repeated on UK soil.
governments to push and fund fundamental research
Furthermore, the current level of public engagement
that could perhaps lead to technological innovation
that is required by the operators to perform before a
once again in the oil and gas industry. If UK cannot be
project is launched（although not adequately enough,
the leader in shale production, let it at least be a leader
according the Task Force report
＊ 22
）, ensures the
public to feel included in the affairs of their
in shale research and the best model for shale
extraction.
< 注・解説 >
＊ 1： Tallents A., Oil & Gas Review, May 2 0 1 1, European Gas Supply & Demand, and the Outlook for Shale Gas, http：
//oilgas-info.jogmec.go.jp/pdf/4/4 3 6 8/2 0 1 1 0 5_0 4 3a.pdf
＊ 2： Tallents A., Oil & Gas Review, November 2 0 1 2, An Update on Shale Gas in Europe, https：//oilgas-info.jogmec.
go.jp/report_pdf.pl?pdf=2 0 1 2 1 1_0 4 7_a ％ 2epdf&id=4 7 8 8
＊ 3： EIA. Oil and gas industry employment growing much faster than total private sector employment http：//www.
eia.gov/todayinenergy/detail.cfm?id=1 2 4 5 1
＊ 4： HIS June 2 0 1 2, The Economic and Employment Contributions of Unconventional Gas Development in State
Economies,
＊ 5： EIA, U.S. Energy-Related Carbon Dioxide Emissions, 2 0 1 3, http：//www.eia.gov/environment/emissions/
carbon/
＊ 6： EIA AEO2 0 1 4 early release overview, http：//www.eia.gov/forecasts/aeo/er/
53 石油・天然ガスレビュー
Analysis_Ozawa.D.indd
53
2015/05/12
17:42:41
JOGMEC
K Y M C
アナリシス
＊ 7： House of Lords, Economic Affairs Committee - Third Report, The Economic Impact on UK Energy Policy of
Shale Gas and Oil http：//www.publications.parliament.uk/pa/ld2 0 1 3 1 4/ldselect/ldeconaf/1 7 2/1 7 2 0 2.htm
＊ 8： H oward Rogers, OIES, July 2 0 1 3, UK shale gas – Hype, reality and difficult questions, https：//www.
oxfordenergy.org/2 0 1 3/0 7/uk-shale-gas-hype-reality-and-difficult-questions/
＊ 9： EIA, U.S. remained world’
s largest producer of petroleum & natural gas hydrocarbons in 2 0 1 4, http：//eia.gov/
todayinenergy/detail.cfm?id=2 0 6 9 2
＊ 1 0：BBC, Dec 2 0 1 3, http：//www.bbc.co.uk/news/business-2 4 8 2 3 6 4 1
＊ 1 1：EIA website, Russia, country analysis, http：//www.eia.gov/countries/cab.cfm?fips=rs
＊ 1 2：Telegraph, UK gas prices to soar if Russia cuts off supplies to Europe, National Grid warns http：//www.
telegraph.co.uk/finance/personalfinance/energy-bills/1 1 1 9 1 7 3 3/UK-gas-prices-to-soar-if-Russia-cuts-off-suppliesto-Europe-National-Grid-warns.html
＊ 1 3：DECC Digest of UK Energy Statistics and website（www.gov.uk/decc）
＊ 1 4：BBC News, http：//www.bbc.co.uk/news/uk-politics-2 5 7 0 5 5 5 0
＊ 1 5：Gov.UK https：//www.gov.uk/government/policies/providing-regulation-and-licensing-of-energy-industries-andinfrastructure/supporting-pages/developing-shale-gas-and-oil-in-the-uk
＊ 1 6：Institute of directors http：//www.iod.com/influencing/press-office/press-releases/new-iod-report-getting-shalegas-working
＊ 1 7：According to a spokesman from Caurdrilla, mentioned in the Central and Eastern European Shale Gas Conference
2 0 1 5.
＊ 1 8：Cuadrilla News, http：//www.cuadrillaresources.com/news/cuadrilla-news/article/statement-from-cuadrillaresources-on-refusal-of-grange-hill-planning-application/
＊ 1 9：Professor Paul Stevens, Chatham House, personnel communication, 2 0 1 5
＊ 2 0：UKOOG（United Kindgom Onshore Oil and Gas）website, http：//www.ukoog.org.uk/knowledge-base/history/
what-is-the-history-of-the-onshore-oil-and-gas-industry-in-the-uk
＊ 2 1：Hydrocarbons Technology website, http：//www.hydrocarbons-technology.com/projects/wytch-farm-oil-field/
＊ 2 2：Task Force on Shale Gas, https：//www.taskforceonshalegas.uk/reports
＊ 2 3：BBC News, http：//www.bbc.co.uk/news/uk-2 5 6 9 5 8 1 3
＊ 2 4：http：//www.bbc.co.uk/news/business-2 4 6 2 0 7 9 1
＊ 2 5：BBC Online, http：//www.bbc.co.uk/news/uk-scotland-scotland-politics-3 1 0 1 6 5 3 7
＊ 2 6：Wales online, http：//www.walesonline.co.uk/news/wales-news/end-fracking-wales-welsh-government-8 6 3 8 8 0 2
＊ 2 7：Shale Gas Europe website, http：//www.shalegas-europe.eu/shale-gas-explained/shale-gas-and-europe/france/
＊ 2 8：The Guardian, http：//www.theguardian.com/environment/2 0 1 5/feb/1 4/germany-legalise-fracking-shale-gashydraulic-fracturing
＊ 2 9：FT Online, http：//www.ft.com/cms/s/0/ffa0 9b6 0-6 0 3 6-1 1e4-9 8e6-0 0 1 4 4feabdc0.html#axzz3VbGcnv9N
＊ 3 0：Liam Herringshaw, Durham Univerity http：//theconversation.com/whatever-happened-to-the-great-europeanfracking-boom-3 8 5 5 0
＊ 3 1：Responding to Climate Change Website, http：//www.rtcc.org/2 0 1 5/0 2/0 5/denmark-to-reconsider-fracking-banafter-total-shale-tests/
＊ 3 2：FT online, http：//www.ft.com/cms/s/0/2 0 2 0 1c3 6-f7db-1 1e3-baf5-0 0 1 4 4feabdc0.html#axzz3VxhI1o0 0
2015.5 Vol.49 No.3 54
Analysis_Ozawa.D.indd
54
2015/05/12
17:42:41
JOGMEC
K Y M C
Drill UK Drill（Prim and Properly Please....）
執筆者紹介
Dulee Ozawa（小澤　ドゥリー）
学　歴：筑波大学大学院生命環境科学研究科博士課程中退。
筑波大学大学院環境科学研究科修了。
University of Manchester, B.Sc. with honours in Zoology with Japanese
職　歴：2014年6月、JOGMECロンドン事務所調査員（石油・天然ガス部門）となり、現在に至る。
趣　味：家族と旅行することと旅行先の料理を家で再現すること。
近　況：最近は、体力いっぱいの2歳半の娘をいかに疲れさせるかが毎日の課題となっています。
55 石油・天然ガスレビュー
Analysis_Ozawa.D.indd
55
2015/05/12
17:42:41

Download Report