Shale gas- criticized source but we still want to own one

WHILE shale hydrocarbons continue to be a hot topic around the world, success achieved in the United States might be hard to replicate elsewhere, an oil and gas expert said yesterday.

Emmanuel Liberelle, Total E & P Borneo geosciences manager, said that a number of factors contributed to the revolution of shale in the United States.

Oil Shale- the unconventional oi supply. (photo at energy digital)

Liberelle delivered a talk on shale gas and oil in the US at the Radisson Hotel.

The event was organised by the French Bruneian Business Association and attended by a number of local companies as well as government agencies, including Petroleum Brunei.

“First, in the United States, the owner of the land is the proprietor of the sub-surface,” he said, adding that this gives incentive for land owners to allow oil and gas companies to operate.

In other countries, however, the sub-surface of a land is owned by the state, making it complicated for the landowner, company and the state to negotiate terms for the mining of the energy resource, he added.

He also said that workforce was a factor, with the US having industrial logistic facilities already on location. Liberelle also noted that the terrain in the US is favourable for shale production, as its development requires large, wide and flat surface area as well as road access for logistics.

In many Asian countries, hilly terrain and jungles make it financially unfeasible for shale hydrocarbon production, noting that compared to conventional oil and gas production, shale production uses a significantly greater area, he added.

Public acceptance is also an issue, he said, without elaborating.

Shale has been criticised as an energy resource because it is extracted using the controversial process of hydraulic fracturing, or fracking.

Fracking entails drilling and injecting fluids at high pressure to fracture shale rocks to extract the hydrocarbons. Critics of the process maintain that it deals damage on the environment. Among others, fracking is believed to contaminate groundwater.

Liberelle noted that in the United States, shale production is accepted and is believed to be a sustainable industry in the country for the foreseeable future.

“It is quite important, and has big potential,” he said.

The talk came on the heels of the announcement that Petroleum Brunei would buy a three per cent stake in Malaysia’s Petronas’ shale gas assets in Canada.

A number of agreements were signed following the 17th Annual Brunei-Malaysia Leaders’ Consultation held in Bandar Seri Begawan, according to a statement from Petronas yesterday.

“Petronas and its Canadian subsidiaries Progress Energy Canada Ltd and Pacific NorthWest LNG Ltd have also signed an agreement with Petroleum Brunei for the latter to acquire a three per cent equity in Progress Energy Canada’s natural gas assets and in the proposed Pacific NorthWest LNG’s export facility. As part of the proposed transaction, Petroleum Brunei has agreed to buy a three per cent share of the LNG facility’s production for a minimum of 20 years,” the statement read

The Brunei Times

-------------------

My comment:

I still wonder why Petroleum Brunei is really into Shale gas contract in Canada when this supply is unconventional. We have plenty of quality and conventional oil and gas field in Brunei both onshore and offshore. So why invest in unconventional one? :]