Fracking for Oil in CHina’s Earthquake Zone

Oil companies begin ‘fracking’ in China’s most dangerous earthquake zone

Published time: August 01, 2013 10:29
Edited time: August 01, 2013 12:05
Reuters / StringerReuters / Stringer

The Chinese want to join the shale gas revolution, even if it means drilling for oil in China’s earthquake hot bed in the Sichuan region, where nearly 70,000 died in an earthquake in 2008.

Royal Dutch Shell Plc and China National Petroleum have started ‘fracking’ operations in the province.

China hopes to boost annual shale gas production to 6.5 billion cubic meters by 2015, and reserves are estimated at about 1,115 trillion cubic feet, according to the US Energy Information Administration, higher than the estimated 665 trillion gas reserves on American soil.

Europe’s largest oil company plans to invest $1 billion per year in China’s shale gas industry, as part of its goal to increase global output to four million barrels of oil and gas by 2017-2018, up from current levels of 3.3 million.

Drilling for oil in the Longmenshan mountain range, where India and Asia meet, could increase tremors in the already highly-sensitive area.

The hydraulic fracturing, or ‘fracking’ process of extracting oil from the earth is invasive and is believed by many to be a direct earthquake instigator.

Extraction by ‘fracking’ involves pumping millions of gallons of water and chemicals into the ground, which creates excess hydro waste, which over time, causes tectonic stress.

“We do detailed structural analysis as a routine part of our pre-drill evaluation,” Shi Jiangtao, a Shell spokesman in Beijing, said in an e-mail to Bloomberg. “This means that we evaluate the geology by using seismic, surface geology, nearby well data, etc.”

There is strong correlative evidence between deep underground wells and nearby earthquakes, both in the US and China.

An investigation by the US Geological Survey found that ‘fracking’ and quakes aren’t directly related, but noted, “at some locations the increase in seismicity coincides with the injection of wastewater in deep disposal wells.”

Human-induced earthquakes would be controversial in a region which experienced one of the deadliest earthquakes in China’s history, which killed nearly 70,000, including 5,335 school children in a 2008 quake in Wenchuan, Sichuan region.

 

Thousands of people flock to look at the devastated town of Beichuan on May 12, 2009 which was destroyed in the May 12, 2008 Sichuan earthquake (AFP Photo / Peter Parks)Thousands of people flock to look at the devastated town of Beichuan on May 12, 2009 which was destroyed in the May 12, 2008 Sichuan earthquake (AFP Photo / Peter Parks)

The boom in oil and gas ‘fracking’ has led to jobs, billions in royalties and profits, and even some environmental gains.

The shale industry boom in the US may add as much as $690 billion to GDP and create 1.7 million jobs by 2020, according to a study by McKinsey and Co. The oil boom has boosted domestic employment, company profits, and GDP in the US, and China is eager to follow suit, even it means drilling in earthquake territory.

Royal Dutch Shell Plc, China National Petroleum, and China Petrochemical Corp all currently have drilling operations in the region.

Environmental concerns

Geologists also raise concerns over the amount of water used in ‘fracking’, and whether China’s shale ambitions could run the water supply dry.

China, home to roughly 20 percent of the world’s population, only controls 6 percent of the world’s fresh water supply, and often experiences serious water shortages. Adding ‘fracking’ to this equation could only further exacerbate the problem. Toxic chemicals used in fracking alter the drinking water.

Shale gas is often found ‘in the middle of nowhere’, places that are already prone to water shortages.

Environmentalists in China have also voiced concern over contamination and pollution brought on by ‘fracking’ waste disposal.

Shell’s earnings hit hard by shale gas

Royal Dutch Shell’s earnings fell $1.1 billion in Q2, year on year, blaming poor performance on higher operating costs, disruptions in Nigeria, and a weakening Aussie currency. Total revenue fell by 5.6 percent.

Net income fell by 57 percent in the second quarter, which was partly due to $2.2 billion the company had to write off on shale exploration and development in the United States.

China’s eagerness to exploit shale gas opens an opportunity for foreign investors looking for a start-up opportunity.

“In the next 18 months we expect to see five major project start-ups, which should add over $4bn to our 2015 cash flow,” said Peter Voser, CEO of Shell, said in relation to quarterly results.

Shell is planning to sell four more oil blocks in Nigeria, and is eyeing selling other assets in the Niger Delta, where oil theft and violence has stunted revenue.

It has already sold eight Niger Delta licenses for a total $1.8bn since 2010, but has publicly announced it remains committed to operations in Nigeria.

from:    http://rt.com/business/china-gas-shale-earthquake-895/

Sichuan, China Earthquake

Extremely dangerous very strong earthquake in Sichuan, China – Death toll now at 156, more than 2,000 injured

Last update: April 20, 2013 at 12:41 pm by By

Update 00:49 UTC :  WAPMERR, the theoretical damage engine has calculated that based on M6.9 and 16 km depth there will be  400 to 3500 fatalities and thousands of injured. Let’s hope that they are wrong !

Screen Shot 2013-04-20 at 02.54.35

Update 00:47 UTC : The Chinese data are even more dangerous. CEIC reports a Magnitude of 7.0 at a depth of only 14 km. ER fears for a lot of fatalities.

Update 00:41 UTC : We do stress that this is a MAJOR DANGEROUS earthquake. The combination Magnitude / depth can be very damaging.

Update 00:40 UTC : Based on the USGS data, Muping Town is at high risk for severe damage. Population : 11000 people

Update 00:37 UTC : We will have to wait a little to get the precise population data in the direct vicinity of the earthquake.

Update 00:36 UTC : Unfortunately all the local Chinese seismology servers are down because of too many requests

Update 00:26 UTC : USGS is expecting a MASSIVE MMI IX shaking near the epicenter. Even if the shaking should be down to VII or VIII, this earthquake will still be very damaging.

Screen Shot 2013-04-20 at 02.26.14

Update 00:26 UTC : USGS is reporting a Magnitude of 6.9 at a depth of only 16 km. EMSC is initially reporting a depth of 60 km. If the final depth is less than 20 km, this earthquake will normally be very damaging.

Update 00:22 UTC : We are currently trying to get the data of the Chinese Seismological services, but so far we could not get to it, probably server are too busy.

Update 00:18 UTC : The earthquake was VERY powerful and felt in a very wide area. We did get already reports as far as Chonqing and Kunming.  We stress that this is a VERY DANGEROUS earthquake

Extremely dangerous earthquake in Sichuan, China
The earthquake was also relatively close to Chengdu (111 km)

111 km SW of Chengdu, China / pop: 3,950,437 / local time: 08:02:53.0 2013-04-20
97 km NW of Leshan, China / pop: 154,477 / local time: 08:02:53.0 2013-04-20

Most important Earthquake Data:

Magnitude : 6.6

Local Time (conversion only below land) : 2013-04-20 08:02:48

GMT/UTC Time : 2013-04-20 00:02:48

Depth (Hypocenter)  : 19 km

 

for more information and updates, go to:    http://earthquake-report.com/2013/04/20/very-strong-earthquake-sichuan-china-on-april-20-2013/