Det Norske Veritas AS has outlined a recommended practice (RP) for shale gas risk management. DNV executives note that no uniform approach exists for policymaking toward shale gas development worldwide although some organizations have proposed regional guidelines.
The RP was developed during an 18-month period, and DNV seeks comments from industry, regulators, nongovernment organizations, and other interested parties. The document, entitled DNV-RP-U301, can be downloaded from http://www.dnv.com/shalegas.
An independent foundation, DNV wants the RP to promote dialogue and feedback toward development of a globally recognized standard for safe and sustainable shale gas development and production.
"Shale gas is a controversial topic, and DNV is used to dealing with controversial topics," Remi Eriksen, chief executive officer of DNV Maritime and Oil & Gas, told reporters during a briefing in Houston last month.
DNV currently has 68 RPs for the oil and gas industry based on joint industry projects or cooperation within industry. For instance, DNV has class standards that cover floating production, storage, and offloading vessels and drillships as well as LNG terminals.
"A complete framework for the safe and responsible development of shale gas does not exist," Eriksen said. "We believe a unified standard will help build the trust and confidence between the shale gas industry and the public at large."
Public opinion polarized
"The North American gas revolution has awakened many shale-gas nations around the world," Eriksen said. "But, the shale-gas industry is also at the center of a political debate with public opinion polarized."
He believes shale gas exploration and production only can gain widespread public acceptance by implementing operational best practices.
Various organizations already developed recommendations and guidelines. The American Petroleum Institute has guidance documents on hydraulic fracturing operations and on water management associated with fracing. The Appalachian Shale Recommended Practices Group issued its comments last year.
DNV said its RP takes an integrated approach to risk management with the intention of bridging differences of opinion among various stakeholders such as operators, service companies, drilling contractors, suppliers, local communities, regulators, and insurance companies.
The RP recommends baseline surveys be done before any shale gas activity, and that those survey results are openly distributed to all stakeholders, including the general public.
"Communication needs to be early and frequent, and choice of the messenger is as important as the message itself," said Steinar Thon, associate director of DNV risk management solutions.
The RP seeks to cover risk management issues specific to shale gas, such as high density of wells, the use of surface and high-pressure equipment for fracturing, water use, possible seismic activity, and the handling of chemicals.
Integrated risk management
The shale gas RP focuses on eight aspects from well design to decommissioning: management systems; health, safety, and the environment; well integrity; management of water and energy; infrastructure and logistics; public engagement; stakeholder communication; and permitting.
Eriksen noted that DNV's objective "is not to take a stand for or against shale gas development." Instead, DNV is presenting what he calls "systematics for a complex picture, quality assurance based on risk management principles combined with an objective third-party view."
DNV intends for the RP to serve as a reference document for independent assessment or verification.
Regarding health and safety issues, the RP lists the following as the predominant health and safety risks associated with shale gas activities:
• Potentially large numbers of wells and well pads with high-density distribution and the associated infrastructure and logistical operations.
• Equipment for hydraulic fracturing, which involves fracturing fluids at high pressure.
• Vehicle traffic.
• Waste management issues related to residuals handling, storage, transport, treatment, recycling, reuse, and disposal.