Golden Rules for a Golden Age of Gas (IEA)

International Energy Agency / May 2012

The IEA believes there is great potential to exploit the world’s unconventional natural gas but for this to happen companies and governments must overcome public opposition by adequately addressing environmental and social concerns.

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The IEA notes that the process to extract unconventional gas (defined as shale gas, tight gas and coalbed methane) in an intensive industrial process has a bigger environmental footprint than conventional gas. There is potential for air pollution and contamination of surface and groundwater. Another important issue is minimizing emissions of greenhouse gases (such as methane) at all times during the production process.

The IEA argues that to win public trust companies should use practices that reduce environmental and social impacts (which the IEA says already exist) and governments should establish robust regulatory regimes.

The IEA recommends following several Golden Rules that can earn the industry a “social license to operate”:

Measure, disclose, engage: consultations with stakeholders. Establish baseline data for key environmental indicators (air, water etc). Measure and disclose water use.
Watch where you drill: minimise impact. Surveys geology of area to avoid causing earthquakes.
Isolate wells and prevent leaks: isolate wells, particularly from freshwater aquifers. Prevent and contain leaks.
Treat water responsibly: reuse and recycle where possible. Store and dispose of waste water safely. Minimise use of chemicals.
Eliminate venting, minimise flaring and other emissions: measures to target zero venting and minimal flaring of gas.
Be ready to think big: realise economies of scale to reduce environmental impacts. Factor in cumulative effects of multiple drilling and production particularly on water, disposal of waste and air quality.
Ensure a consistently high level of environmental performance: Appropriate and enabling regulatory regimes. Adequate emergency response plans.

If these Golden Rules are followed it will be possible to significantly ramp up production of unconventional gas which the IEA estimates could triple between 2010 and 2035 reaching 1.6 trillion cubic metres. This would mean gas would replace coal as the second most important energy source after oil by 2035. This will increase energy security and reduce energy costs. Extensive use of unconventional gas will reduce global emissions but will not be enough to keep global temperatures below 2°C (after which it is predicted climate change becomes irreversible).