A glass half full analysis: lessons learnt from land access experiences for the emerging shale gas industry in Western Australia

Abstract

Western Australia (WA) is on the cusp of developing shale gas. The Australian shale industry is still in its infancy, which is an opportune time to reflect on the challenges faced by its predecessors. The legacy from ongoing coal seam gas (CSG) projects, and the uncertainties associated with this emerging industry, will heighten community scrutiny and potentially require industry players and regulatory authorities to understand and work in new regulations covering this new industry. The shale industry must acknowledge and meet head on the challenges posed by this environment.

Shale gas is typically drilled and produced in a similar way to conventional natural gas reserves. As a result of shale’s low permeability, however, shale gas development also requires fracture stimulation and more closely spaced wells. For example, often six to ten wells may be concentrated on one pad. Technological advancements in gas drilling have fundamentally changed the market, making shale gas a realistic option for supplying part of future global energy requirements.

This peer-reviewed paper examines the lessons learnt from the land use conflicts associated with CSG projects in Queensland and onshore shale developments in the US. In particular, it highlights the importance of understanding the land access approval process and engaging stakeholders effectively, so as to reduce permitting and negotiation delays, which are a key risk to the commercialisation of significant shale reserves. This peer-reviewed paper also explores what approval requirements constrain the delivery of these future projects and what recommendations can be made from the Queensland and United States examples to ensure the viability of onshore shale projects in WA.