Shell Shares Safe Shale Principles

- Shell Shares Safe Shale Principles

Wednesday, June 29, 2011
Royal Dutch Shell plc

Today, from the 2011 Aspen Ideas Festival, Shell makes its Global Onshore Tight/Shale Oil and Gas Operating Principles available to the public with examples of how the company delivers them. Shell has a rigorous set of five global operating principles that provide a tested framework for protecting water, air, biodiversity, and the communities in which Shell operates.

Shell is openly sharing these operating principles to address public concern about tight/shale oil and gas development - especially regarding hydraulic fracturing – encourage feedback and challenge from our stakeholders, and drive continuous improvement. Shell also supports regulation and enforcement that reinforces responsible operating practices and continues to improve the industry's overall performance.

"We understand there is concern around the development of shale gas, and we must give the public more knowledge of how we operate," said Marvin Odum, President, Shell Oil Company. "People have asked the industry for transparency; we have listened and are responding."

Specific on water, hydraulic fracturing has attracted a great deal of attention in recent months. As an example of how we deliver these principles, which are now described online, Shell mandates a stringent well construction standard that focuses on the use of safe drilling and completion processes, including reducing the risk of water contamination.

Further, Shell supports the disclosure of chemicals used in hydraulic fracturing fluids, monitoring of groundwater, and a reduction in the amount of water used in the drilling process. Shell does not fracture wells unless it has pressure tested the wellbore for integrity. And, the company recycles as much water at each project as reasonably practicable. For example, in the Marcellus Shale, Shell recycles almost 100% of produced fluids, substantially reducing our fluid waste and reducing the amount of water volumes needed for hydraulic fracturing.

In the last decade, the industry has discovered an abundance of natural gas. Of the world's 250-year supply of gas estimated by the International Energy Agency (IEA), almost half is contained in shales, tight sandstones, and coal beds. More than one-third of the global gas-production increase, forecasted by the IEA over the next 25 years, could come from these sources.

"If the innumerable benefits of natural gas are to be realized, we must address the concerns of citizens and share the principles that we hold ourselves to at Shell," said Odum. "These principles manage the risk we know exists when producing energy, but just as importantly, they demonstrate our operational integrity and focus on collaboration, underpinning our belief that natural gas can be produced safely and responsibly."

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Trying to Stay Safe

- Trying to Stay Safe

Thursday, June 16, 2011
Knight Ridder/Tribune Business News
by Trevor Brown, Wyoming Tribune-Eagle, Cheyenne

The state is partnering with the oil and gas industry to challenge Wyoming's reputation as one of the most dangerous states to work in the country.

An agreement endorsed Wednesday by the state and an industry safety organization will expand education courses and safety outreach programs to help oil and gas employees recognize specific on-the-job hazards.

The Wyoming Occupational Safety and Health Administration and the Wyoming Oil and Gas Industry Safety Alliance signed an alliance document at the State Capitol to formally establish the partnership.

Bonnie Foster, communications chairwoman for the Wyoming Oil and Gas Industry Safety Alliance, which is comprised of industry members and other stakeholders, said there currently is a lack of training available to many energy companies in the state.

"Although there are many companies that offer (safety training), they are expensive, and a lot of the mom-and-pop outfits that we have here in Wyoming can't afford them," she said. "So this agreement now shows that the oil and gas industry and the state are both extremely concerned about the safety of the oil and gas workers."

J.D. Danni, program manager for Wyoming OSHA, said work began a couple years ago to create the agreement when officials were growing increasingly concerned by the number of injuries and deaths taking place in the industry.

In 2008, Wyoming had the highest occupational fatality rate in the country with 17.1 deaths per 100,000 workers, according to the U.S. Bureau of Labor Statistics. Of the 33 work-related fatalities that year, 13 came from the natural resources and mining industry.

Following 2008's deadly year, Wyoming lawmakers formed the Worker Fatality Prevention Task Force. Among the recommendations the task force made was to create the state-industry partnership.

As part of the new emphasis on safety training classes, the agreement states the two groups will arrange or assist in the delivery of the OSHA 10-Hour Construction Course and 10-Hour General Industry Course for employees and employers.

Danni said he expects the courses and the additional safety awareness programs to provide quick returns.

"I feel positive about it anytime we can get the word out on safety," he said. "It starts with getting management working with employees, who then buy into it, and soon everyone is watching out for each other because safety is everyone's responsibility."

Meetings and workshops set up through the partnership also will provide a forum for employers and employees to discuss safety concerns and encourage employee participation.

Gov. Matt Mead oversaw the document signing Wednesday. He said the focus on safety could benefit the state from an economic development standpoint.

"As we promote Wyoming and our economy and encourage people to stay here to do business or encourage businesses to come to Wyoming, we also want to say not only is it a great place to work ... but we care about our people in a way that we are proactively addressing this issue," he said.

In addition, Mead said the public-private agreement, which is the first of its kind in the state, could be used as a model in other industries, such as construction or transportation.

The new agreement, which does not require any direct state funding, will continue for two years. At that point, Danni said, the groups will reexamine their goals and decide whether to make any changes.

Copyright (c) 2011, Wyoming Tribune-Eagle, Cheyenne

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