Engineering energy: unconventional gas production: a study of shale gas in Australia

Abstract

Many Australian sedimentary basins are prospective for unconventional gas and the undiscovered resource base is very large. The technology (such as horizontal wells, multi-well pads and hydraulic fracturing) is available to produce shale gas (and shale oil and tight gas) in Australia, but production costs are likely to be significantly higher than those in North America and the lack of infrastructure will further add to costs. Shale gas will not be cheap gas in Australia, but it is likely to be plentiful and it has the potential to be an economically very important additional energy source. Increased use of shale gas (and other gas) for electricity generation could significantly decrease Australia’s greenhouse gas emissions based on gas replacing coal. Because of the manner in which shale gas is produced it has the potential to impact on the landscape, on ecosystems, on surface and groundwater, on the atmosphere, on communities, and rarely may result in minor induced seismicity. It will be vital for industry and government to recognise the complexity of the challenges posed by these possible impacts. However, most can be minimised where an effective regulatory system and best monitoring practice are in place and can be remediated where they do occur. If the shale gas industry is to earn and retain the social licence to operate, it is a matter of some urgency to have such a transparent, adaptive and effective regulatory system in place and implemented, backed by best practice monitoring in addition to credible and high quality baseline surveys. Research into Australia’s deep sedimentary basins and related landscapes, water resources and ecosystems, and how they can be monitored, will be essential to ensure that any shale gas production is effectively managed and the impacts minimised.