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Cape Town - Shell South Africa has undertaken to provide any Karoo landowners with documentary proof of any direct damage or loss that they might suffer as a consequence of Shell’s activities on their properties and to make full compensation, the oil company’s chairperson, Bonang Mohale, said on Wednesday.
All the chemical substances to be used at each borehole to extract shale gas in the process of hydraulic fracturing (fracking) would be disclosed.
Shell would not compete with the people of the Karoo for their scarce water resources. An independent advisory committee would be set up to provide advice on the environmental and social impact of the gas project.
These were among the commitments given by Mohale at a Cape Town presentation to journalists regarding the oil giant’s application for a gas exploration right over a 90 000km² area in the Karoo.
With regard to the resolve of action groups, environmental conservationists and businesspeople such as Johann Rupert to prevent Shell – with legal action if necessary – from proceeding with the project, Mohale said it was the groups’ democratic right to take Shell to court.
He said Shell would be open, honest and transparent, and he was prepared to listen to all views and concerns about the project, as well as to cooperate with the Karoo community.
Graham Tiley, general manager for new ventures and international exploration at Shell, said it could take nine years to determine whether natural gas could indeed be viably exploited in the Karoo.
There were good indications that the natural gas was present, but great uncertainty prevailed as to whether it could flow and at what rate, and whether it would be economically viable to extract.
Mohale said that Shell had already registered with PetroSA as one of two shortlisted companies hoping to supply PetroSA’s Mossel Bay gas-to-fuel plant should sufficient gas be found.
PetroSA’s natural gas resources on the south coast are expected to be exhausted by 2014, and Shell hopes to supply gas-driven power stations with this gas.
Tiley said combined-cycle gas turbine plants were 40% more energy efficient than coal-fired power stations and released 50% to 70% less greenhouse gas.
Gas-fired power stations were also cheaper and quicker to build than coal-fired or nuclear power stations.
According to Tiley, technology was continuously improving. Currently up to 24 boreholes could be sunk from a single drilling site, considerably reducing the surface environmental impact.
In time biodegradable and more environmentally friendly chemicals could be developed for fracking. Shell would use the very latest technology as it became available.
Jonathan Deal, who is coordinating the Treasure the Karoo action group, responded to enquiry by saying that New York State in the US had placed a moratorium on fracking last December, as had France last week. He wondered why energy companies could not wait until 2014, when new scientific research by the American environmental protection agency (EPA) on the possible impact of fracking on potable water sources would be completed.
According to Mohale, Shell would apply the EPA’s recommendations. Shell was an active participant in the EPA research, he said.
Derek Light, a Graaff-Reinet attorney representing various farmers, landowners and businesspeople opposed to Shell’s project, said the onus was on government and Shell to prove that the risks attached to fracking were manageable.
- Sake24.com
For business news in Afrikaans, go to www.sake24.com.
All the chemical substances to be used at each borehole to extract shale gas in the process of hydraulic fracturing (fracking) would be disclosed.
Shell would not compete with the people of the Karoo for their scarce water resources. An independent advisory committee would be set up to provide advice on the environmental and social impact of the gas project.
These were among the commitments given by Mohale at a Cape Town presentation to journalists regarding the oil giant’s application for a gas exploration right over a 90 000km² area in the Karoo.
With regard to the resolve of action groups, environmental conservationists and businesspeople such as Johann Rupert to prevent Shell – with legal action if necessary – from proceeding with the project, Mohale said it was the groups’ democratic right to take Shell to court.
He said Shell would be open, honest and transparent, and he was prepared to listen to all views and concerns about the project, as well as to cooperate with the Karoo community.
Graham Tiley, general manager for new ventures and international exploration at Shell, said it could take nine years to determine whether natural gas could indeed be viably exploited in the Karoo.
There were good indications that the natural gas was present, but great uncertainty prevailed as to whether it could flow and at what rate, and whether it would be economically viable to extract.
Mohale said that Shell had already registered with PetroSA as one of two shortlisted companies hoping to supply PetroSA’s Mossel Bay gas-to-fuel plant should sufficient gas be found.
PetroSA’s natural gas resources on the south coast are expected to be exhausted by 2014, and Shell hopes to supply gas-driven power stations with this gas.
Tiley said combined-cycle gas turbine plants were 40% more energy efficient than coal-fired power stations and released 50% to 70% less greenhouse gas.
Gas-fired power stations were also cheaper and quicker to build than coal-fired or nuclear power stations.
According to Tiley, technology was continuously improving. Currently up to 24 boreholes could be sunk from a single drilling site, considerably reducing the surface environmental impact.
In time biodegradable and more environmentally friendly chemicals could be developed for fracking. Shell would use the very latest technology as it became available.
Jonathan Deal, who is coordinating the Treasure the Karoo action group, responded to enquiry by saying that New York State in the US had placed a moratorium on fracking last December, as had France last week. He wondered why energy companies could not wait until 2014, when new scientific research by the American environmental protection agency (EPA) on the possible impact of fracking on potable water sources would be completed.
According to Mohale, Shell would apply the EPA’s recommendations. Shell was an active participant in the EPA research, he said.
Derek Light, a Graaff-Reinet attorney representing various farmers, landowners and businesspeople opposed to Shell’s project, said the onus was on government and Shell to prove that the risks attached to fracking were manageable.
- Sake24.com
For business news in Afrikaans, go to www.sake24.com.
