Unconventional Gas Aberdeen 2014: Let's Have an Informed Discussion

A global energy professional with more than 30 years of international operations experience, Alasdair Buchanan, Chief Operating Officer and Managing Director of the Senergy Group’s Energy Services division, is a member of an industry-led committee which devised the program for the forthcoming Unconventional Gas Aberdeen 2014 conference, taking place on 25-26 March in Aberdeen, UK.

A member of the Lloyd’s Register Group, Senergy is an integrated energy services company that applies expertise and technology to assist the development and management of oil and gas fields and renewable energy projects.

In preview of the event in Aberdeen, Mr. Buchanan offered his insights to Natural Gas Europe on the prospects for developing unconventional gas in the UK.

Of the conference, he comments, “My involvement in this conference is purely because of my personal interest in developing unconventional resource. I think it's important globally that shale resources are developed further.”

In general terms could you offer your perspective on why the UK should pursue unconventional gas? What's at stake?

The UK needs to look at unconventional gas as a potential resource following the same reasons as the US who are developing unconventional resources. If you look at the North Sea market it's declining and providing only 50% of our gas demands, the UK sector gas reserves are significantly down and for energy security purposes I think we need to find a resource which is within our sovereign borders and can be clearly developed.

The whole point of the Unconventional conference is not to argue one way or the other whether or not it's the right thing to do, but to have an informed discussion between all the interested parties to uncover what the true facts are about unconventional gas development.

It's a very emotive subject and there's been a lot written about it, a lot of it incorrect, and I think it is important that that informed discussion is held.

What sorts of unconventional gas projects have the greatest potential in the UK?

I think over time, coal-bed methane projects and shale gas are probably two of the most likely candidates. There's definitely some potential at some point for coal gasification to come in, but for the near-term the most likely candidates are going to be shale gas resources.

The Aberdeen conference won't just cover the UK, but lots of other areas. There will be presentations from other parts of the world on how things are being done there, like in Eastern Europe where a number of projects are being pursued.

How would you characterize the Government's stance towards developing unconventional gas?

I think they are very much behind it. They see the benefits that can come from a prudently-regulated development of that marketplace and are pushing to support it through legislation to develop an unconventional market.

Despite that support, it seems like there will be a real slog to get beyond the public opposition in the UK. What are your thoughts on that?

That's one of the reasons for having a conference like this is to have that open discussion and make sure that the public are informed about what the positives and negatives are of developments like these. Public opinion is very important and is going to drive the speed of developments coming in.

I think that that discussion needs to be informed, to be factual and not as emotive as it has been in the past, where there are a number of things said that are clearly untrue about the development of shale resources. And I think it's really important that there be a platform where that discussion can occur.

Until that happens there will be pushback on some of these developments and I think that once people realize what is involved and what the potential is for the use of shale gas, then it will go ahead.

What do you think is the single greatest misconception regarding unconventional gas that protest groups might have?

If you're talking specifically about fracking I think that there is a perception that there will be significant environmental damage to every area where drilling is occurring.

Hydraulic fracturing is being presented as being something new, as still very much in its infancy, but hydraulic fracturing has been going on in the US since the 1940s. There are millions of frack jobs that have been performed; I'm sure the UK has had fracturing operations going on since the 70s. This is not a new technique that has been tried out; although limited, there have been onshore fracking operations in the UK since the late 1970s in both geothermal energy and gas production projects. The biggest issue surrounding fracturing is around ensuring that safe operating practices are followed rather than the actual mechanics and technology that's being employed subsurface.

I think it's something that if allowed to go ahead without any regulation, then there could be issues. It has to be regulated properly, but I don't think you'll find that it's any different to something like the nuclear industry from the point of view of regulation and management, where in this sector, proper controls are in place to minimize potential risk from operational or environmental hazards.

That said, do you think that greater safeguards are being taken in Europe than in North America?

I think there will be more regulation brought in controlling the drilling and hydraulic fracturing process in Europe, but to be honest I think it's also being brought in in North America.

The big difference in the US is that there are wide open spaces for large rigs and equipment being brought in. Europe is much more difficult from the point of view of bringing equipment on narrow country lanes in some areas. It's got different challenges, but there's no reason why it can't happen in a safe manner.

There are already moves to import shale gas from the US in order to fuel some of our petrochemical plants in the UK, so it would be madness to go through that process if they can produce their own gas locally.

Given the UK's experience in hydrocarbons' production, what do you think Britain brings to the table in terms of its pursuit of unconventionals?

From the drilling side, there is a long history of offshore drilling in the UK sector and there's a lot of technology that has been developed in the UK, which is basically now exportable for other areas, so there's a strong history. Even in offshore drilling back in the 60s and 70s there was public sentiment that it was something to be concerned with and it was slow to develop at that point in time. We are seeing the same thing now with shale development: that there's concern and small pressure groups that are pushing back on this happening.

I think it's a matter of time before it will go ahead. It will take time for sure.

What significance do you think unconventional gas will have in Europe in 10 years' time?

By that time we will definitely see that it has become in some areas a much more reliable fuel source, not just for the UK, but for the rest of Europe as well. So I think unconventional will start to play its part in the future, and I think 10 years is probably a reasonable timeframe for us to see some significant production.

Drew Leifheit is Natural Gas Europe's New Media Specialist.