Cape Town - Energy giant Shell should be allowed to drill a small number of exploration wells to test whether natural gas can be extracted from deep under the Karoo through hydraulic fracturing, or fracking.
This is according to the environmental consulting company that has compiled a draft environmental management plan for this highly controversial project.
Fracking involves shattering underground rock formations that contain gas deposits, by injecting a water-and-chemical mix into them under high pressure, so releasing the gas into wells for collection.
But the consultants also say South African authorities should not take any decision on whether to allow the energy company to start extracting gas on a commercial basis before a comprehensive study by the US Environmental Protection Agency on this extraction process – which is potentially highly destructive environmentally – has been concluded. This is not expected before 2014.
The Shell Exploration Company, a registered subsidiary of Royal Dutch Shell, has formally applied to explore for gas in three Karoo regions, each 30 000km2 in extent, in the deep shale rock strata in the south-western Karoo basin. It plans to drill up to eight exploration wells in each area.
Its application has evoked a storm of protest, with responses including the formation of the Treasure the Karoo Action Group to co-ordinate the widespread opposition.
As part of the statutory approval process for exploration rights, Midrand-based environmental consulting company Golder Associates Africa has produced a separate, but very similar draft Environmental Management Plan for each of the three proposed areas.
According to these documents, technological improvements in drilling techniques make it possible to stimulate gas to flow from “‘tight” rock formations, such as those found in the Karoo.
“However, there is inadequate information to evaluate whether the shale formations present within the Karoo hold potential as a viable gas resource.
“Consequently, early-level exploration is necessary to confirm whether South Africa potentially has viable unconventional natural gas resources which may be of strategic value in the future as an energy source to meet the growing demand for electricity within the country.”
Golder states in its recommendation that unless an exploration licence is granted, the potential of the Karoo shales to supply economic supplies of gas will remain unknown.
“In (our) opinion, such an approach would be unnecessarily conservative. It would prevent, or delay, the determination of the resource potential of the Karoo shale gas formations and the benefits that South Africa could derive from this…
“It is unlikely, in our view, that the construction of a small number of wells could, in itself, result in environmental damage that is unacceptable.”
However, the consultants also acknowledge concerns about the risks associated with fracking in shale gas production well fields.
“The current review of the risk to water resources posed by hydraulic fracturing, being conducted by the US Environmental Protection Agency (Usepa), bears testimony to this,” it says.
“While we would support the current applications for exploration rights submitted by Shell, we believe it would be wise for decision-makers to await and consider the findings of the Usepa review, before any licensing of a production well field is considered.”
l The draft environmental management plan has been available for public review since Monday, and the comment period runs until Tuesday, April 5.
Public meetings are being held in several Karoo towns and in Port Elizabeth.
In Cape Town, a public meeting is scheduled to be held on Friday, March 25, from 5pm to 8pm, at the Sports Science Institute in Boundary Road, Newlands.
For further information, contact Golder Associates Public Participation Office (Marisa du Toit or Annerine Prinsloo) at 011 254 4944/4839 or e-mail [email protected]. Visit http://www.golder.com
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