Stakeholder Issues Play Key Role in Shale Future

Abstract

Stakeholder Engagement As the shale revolution changes the map of oil and natural gas development and shifts the balance of production between regions, public acceptance is an increasing challenge. The unconventional resource boom has brought intensive drilling and production operations to areas often unaccustomed to these activities and frequently more populous than traditional petroleum development areas. A variety of public concerns have assumed a high profile, including the environmental issues of water use; perceived risk to groundwater aquifers; waste disposal; truck traffic, dust, and noise; and emissions. While the success of production from shales and other tight-rock formations draws attention nationally and globally, its future depends much on the attention and reception it receives locally. As shale drilling has surged, public eyes may be more focused on the community impacts of oil and gas operations than ever before. Some jurisdictions have imposed moratoria or even bans on the use of hydraulic fracturing, which is an essential component of the success of shale development. The risk of similar measures and additional restrictions spreading to other areas is real. There is increasing industry recognition of the need to reach out to communities, share information, and listen to stakeholders. Enactments such as fracturing moratoria and bans are “the single thing that can stymie more development in these unconventional resource plays,” said Clay Bretches, chief executive officer of Sendero Midstream. Formerly vice president of E&P services and minerals at Anadarko, Bretches chaired the coordinating subcommittee of the North American Resource Development Study for the National Petroleum Council’s (NPC’s) report, “Prudent Development— Realizing the Potential of North America’s Abundant Natural Gas and Oil Resources,” presented to the United States Secretary of Energy in September 2011. For the industry, Bretches and others said, sustainable success in field development demands an increased willingness and ability to engage all stakeholders, including communities and local governments, nongovernmental organizations (NGOs), and a variety of industry-related bodies. This is in addition to higher levels of government that are customarily involved. The need for increased stakeholder engagement was emphasized in the “Prudent Development” report.