Coal Seam Gas Exploration in Australia

INTRODUCTION

Coal seam gas can be described as natural methane (gas) that could be found in coal seams. It can also be regarded as natural gas. Australia has the highest deposit of coal gas seam with large coal reserves in Queensland majorly in Bowen and Surat basins that produce more than 70% of gas in Queensland and little deposit in NSW. (O’Kane, September 2014)

In Australia, coal seams that are extracted for coal seam gas usually occurs 250-1000 metres below ground surface. Large coal seams produced in Australia till date especially in Queensland did not go through fracking of the coal seams. (Ibid)

However, as Australia decides to go into the production of coal seam gas in large quantity, there may be the need to introduce fracking which will increase the oil wells from 10percent to 40 percent. (Williams,2013)

WHAT IS FRACKING?

Fracking is regarded as {hydraulic fracturing} can be described as the drilling of the earth vertically or horizontally into the rock layer and applying a high-pressure water mixture to extract the gas. Water (at least 100,000 gallons), sand and different chemicals that include little toxic substances are forced into the rock at high pressure to release the gas into new pathways or existing stations. (Ridlington Oct,2013)

Coal seam gas is usually found in microspores in coal seams and cracks where it is stored as free gas or taken to coal surfaces. Extracting gas from wells into the coal seam, the hydraulic pressures put forth by water must be drastically reduced so; the pumping ground water will automatically produce the Coal seam gas.

The gas then rises to the top of the well, with the help of atmospheric pressure where it is taken and transferred at a slow rate into the treatment plant and then forcefully into the transmission pipeline. The quality derived from the pipeline is naturally coal seam gas and aside drying, it does not require any treatment as such. Solid seam that needs fracking to enable gas passage are really expensive to develop while seams with natural fractures are less expensive.

WHY CSG IS IMPORTANT TO AUSTRALIA

In the mid 1960's Australia, (O’Kane, September 2014) was making use of conventional gas and in the last decade, Australia has been making use of Natural gas. Natural gas will definitely play a major role in the supply of Australia's energy.

The transition of Australia to a lower carbon economy is of great importance for its gas-fired electricity generation because electricity sourced from gas reduces gas emission which automatically increases the demand for gas fired electricity.

The fast growing coal seam gas industry in Australia has been able to provide more than 18000 jobs in Queensland alone and also generated private sector investment worth more than $45billion. The royalty derived from the industry is more than $850million a year which could be used in assisting schools and hospitals. (Williams, 2013)

Australia's large reserve of Coal seam gas has contributed in the demands of commercial household, industrial use and also it’s GDP.

Despite the great importance of the industry to Australians, some stakeholders are having different opinions on the emergence of the industry to their source of livelihood and the environment.

STAKEHOLDERS OPINION

The long history of huge coal mining in Australia is of major interest and concern to stakeholder’s .Some stakeholders such as, the Farmers and Grazers, Mining Industry, Local Community and Environmental Society that are involved or affected during and after extraction have divergent opinions.

THE LOCAL COMMUNITY 

In the opinion of the local community, they must be carried along in the exploration, environmental and developmental activities since they will be mostly affected by these industries. Water contamination is also a source of worry the local community as radioactive materials are not good for human consumption and could be found around wells.

FARMERS AND GRAZERS

Farmers are willing to co-operate with the miners if only the government can give them full right on their land by determining the cost and agree to the use of the land. The farmers and grazers feel there must be alternative for quality water supply to the farms and graze lands for irrigation and good for human and animal consumption. Some farmers in Victorian Farmers Federation (VFF) are of the opinion that fracking should be banned until at least 2020. (ABC Premium News, 2015)

MINERS

Miners on their part want all extracting industries such as coal and coal seam gas have come to the conclusion that, there should be new approaches to reduce environmental impact and all regulatory laws must be strictly adhered to. Miners also want the ban on fracking lifted in other attract more investors into the industry.

THE ENVIRONMENTALIST

The Environmentalist made it known that, the reduction in greenhouse gas emission with the use of coal stream gas by industries is a good significant of proper adherence to climate change facing the world, an alternative to fuel source and introduce a lower carbon economy.

IMPACT

The environment and community may be adversely affected in the production of coal seam gas.

ENVIRONMENTAL IMPACT – Leakages is a great problem to wells which is not good to the environment so, searching for more fields and monitoring of existing stations could limit its adverse effect. Extraction of coal seam gas will cause severe havoc to the environment; it will impact negatively on agricultural lands thereby contaminating groundwater reserves which could reduce food production.

IMPACT ON THE COMMUNITY- The host community of these industries will also be negatively affected. There is high rate perception that, human and animal health (air quality, water and earthquakes} could be affected because it is more dangerous and damaging than other extractive industries such as the deadliest Napier Earthquake that killed 256 people. (New Zealand Herald, 10/12/2012)

CONCLUSION

With proper planning, legislation and adequate awareness to the community, groups and stakeholders, all the negative impact can be reduced and growth in the economy will be experienced.

The prospects of coal seam gas to the development of Australia far outweigh its negative impacts if only, formulated laws and regulations are backed with heavy sanctions or penalty which when followed to the latter, will facilitate stakeholders giving a go-ahead with the operations of the industries. Local community will be assured of jobs, miners will work in a conducive environment, farmers and grazers will be not fear loss and if any, adequate compensation will be made.

RECOMMENDATION

Natural gas is of large quantity, untapped resources and has the potential of spurring Australia's economy and contributes greatly to its development. Consultation with stakeholders and companies in the industries will bring the rapid development and benefit natural gas can offer to Australians.

Coal seam gas is of great advantage to Australia’s economy with little negative impact on the local community, environment and miners which could be minimized if all concerned stakeholders are carried along in the processes.

REFERENCES

Fracking ban incites 'fear, concern' about coal seam gas, inquiry told -Source:ABC Premium News, 22/07/2015 Accession Number:P6S304331981815 - http://web.b.ebscohost.com/ehost/detail/detail?sid=42bae2c1-db7a-4776-99b4-462096e6b4a2%40sessionmgr198&vid=0&hid=128&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#AN=P6S304331981815&db=anh

Sam Judd: What the frack? A brief overview of hydraulic fracturing-Source:New Zealand Herald, 10/12/2012,ISSN:11700777,Accession Number:HOB164445963412- http://web.b.ebscohost.com/ehost/detail/detail?sid=cfca751d-fbe0-436a-a031-fcca275463be%40sessionmgr113&vid=0&hid=128&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#AN=HOB164445963412&db=anh

Study shows CSG fields leaking at greater rate ABC Premium News, Mar 07, 2013 Item: P6S028080817313

http://web.b.ebscohost.com/ehost/detail/detail?sid=5db284c6-cd4b-4b59-a74c-a08036f4671c%40sessionmgr110&vid=0&hid=128&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#AN=P6S028080817313&db=anh

Final Report of the Independent Review of Coal Seam Gas Activities in NSW Sept 2014-Mary O’Kane ,Chief Scientist & Engineer 30 September 2014.- http://www.chiefscientist.nsw.gov.au/__data/assets/pdf_file/0005/56912/140930-CSG-Final-Report.pdf

Coal Seam Gas Production: Challenges And Opportunities-http://wentworthgroup.org/wp-content/uploads/2013/12/BREE_Coal-seam-gas-production_WILLIAMS-etal-.pdf

KReport On Coal Seam Gas Exploration In Australia.- John Williams, John Williams Scientific Services Pty Ltd; Ann Milligan ENRiT: Environment and Natural Resources in Text; and Tim Stubbs, Yellow and Blue Pty Ltd: Environmental and Natural Resource Consulting- http://wentworthgroup.org/wp-content/uploads/2013/12/BREE_Coal-seam-gas-production_WILLIAMS-etal-.pdf

Coal Seam Gas Water Management Policy 2012- Energy Resources, Department of Environment and Heritage Protection. - https://www.ehp.qld.gov.au/management/non-mining/documents/csg-water-management-policy.pdf

NSW Coal and Gas Strategy –Scoping Paper- Coal and Gas Strategy Department of Planning-http://aglblog.com.au/wp-content/uploads/2011/05/Submission-on-the-NSW-Coal-and-Gas-Strategy.pdf

Fracking by the Numbers Key Impacts of Dirty Drilling at the State and National Level Elizabeth RidlingtonFrontier Group,John Rumpler Environment America Research & Policy Center,October 2013

http://www.environmentamerica.org/sites/environment/files/reports/EA_FrackingNumbers_scrn.pdf