Shale gas in Australia: a great opportunity comes with significant challenges
David WarnerDSWPET Pty Ltd.
The APPEA Journal 53(2) 476-476 https://doi.org/10.1071/AJ12087
Published: 2013
Abstract
Australia could have shale gas resources several times bigger than the existing conventional gas resource base, which is estimated at about 5,300 BCM (190 TCF) by Geoscience Australia (GA). The Australian Government has no estimate of potential shale gas resources. The US Department of Energy (EIA) in 2011 estimated Australian shale gas resources to be 400 TCF. The quantity of this estimate is supported by an Australian study—which estimates resources of 600 TCF—conducted by Advanced Well Technologies (AWT) in conjunction with DSWPET.
While there are significant technical differences between the shale gas plays in the US and Australia, it is too early to tell if the technical differences are barriers. There are also significant differences in the commercial landscape. The lack of capacity in Australia has lead to much higher costs for drilling and fracture stimulation than in the US. The size of the domestic gas market is much greater in the US and its existing infrastructure allows for production to come onstream quickly. In Australia this infrastructure is not present in most areas and the domestic market cannot support another large gas development.
Perhaps the greatest challenge to this great opportunity is politics. There is a public, hence political, perception that all gas sources have the same gasland problems. These perceptions can be changed. First, the petroleum industry and governments need to understand the potential size of the gas resource and the possible strategic opportunity for Australia. Also these parties need to recognise that the shale gas resources are often located away from areas of high social and environmental impact. Once these factors are understood by these parties, factual information about the environmental impact of shale gas plays in comparison with coal seam methane and other alternative gas supplies can be factored into gas resource planning.
David Warner is a geologist with 38 years of experience in the oil and gas business developing conventional and unconventional prospects. He has a BSc (geology) (honours) from Armidale University and an MSc from Imperial College London. Before joining Armour Energy, he was directly involved in the development of Santos’ unconventional gas projects and responsible for presenting the concept of unconventional gas as a resource within the company. Member: AAPG and SPE. |
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