Royal Dutch Shale (Again)
Boosted by recent breakthroughs in its production and its relatively small carbon footprint, the head of Europe´s largest oil company says natural gas will play a bigger role in the global energy mix in the coming decades.
Speaking today to the World Energy Congress in Montreal, Royal Dutch Shell Chief Executive Peter Voser said that demand for natural gas could rise by 25% by 2020, and nearly 50% by 2030.
“That would represent double the growth of oil during the same period in the International Energy Agency's reference case.”
"If we create space for natural gas to grow, natural gas will change the world's energy landscape for the better," said Voser.
Shale Everywhere
Voser said that a ”revolution” was under way in the natural gas industry because of the emergence of shale gas.
Unconventional gas is playing large role in Shell’s reserves replacement strategy.
Shell has strong shale gas positions in North America, has taken initiatives for unconventional resources in some high-risk areas in Columbia and Brazil and of course, is active in Europe, particularly in Sweden.
Voser spoke about the prospect for shale gas in the Karoo Basin in South Africa. The Company was an early entrant into the market, securing a Technical Cooperation Permit (TCP) approximating 100,000 km2.
“We are convinced and positive that there is a high probability of shale gas [in South Africa],” Voser told a media briefing.
“We are now starting the work and trying to build the first wells and then we are in a position to give you regular insight.”
Voser said it was too early to tell what the potential of shale gas was in the region, or how long production would take to develop.
Environmental Concerns
New technology has made tapping into unconventional natural gas reservoirs easier than ever before. However, the methods such as hydraulic fracturing used in obtain unconventional gas technologies, are also highly controversial.
Voser told delegates at the Congress that Shell takes seriously environmental concerns over the impact shale gas production may have on water supplies in North America.
"I realize that there is some public concern that fracturing could affect fresh water layers in the ground," said Voser.
"Rather than closing our eyes to that reality, we must confront risks and manage them as effectively as we can."
"We comply with regulations and follow strict procedures to ensure that the process is safe," he said.
Community engagement and transparency are also important.
Earlier, Glynn Ellis, Manager, New Business from Shell's Global Exploration division, emphasized the Company’s activities in Sweden had shown that “operating in a sustainable way and with the support of the community is achievable.”