Water risk underestimated in shale gas development

September 5, 2014 | By Barbara Vergetis Lundin

Credit: Thinkstock

Governments and businesses using hydraulic fracturing to develop shale gas could face intense water competition in the world's largest reserves, according to a new report by the World Resources Institute (WRI).

In ranking the water stress across 20 countries with the largest shale resources, WRI found that in 40 percent, future shale production could happen in arid conditions or under high water stress.

"Water risk is one of the most important, but underappreciated challenges when it comes to shale gas development. With 386 million people living on land above shale plays, governments and business face critical choices about how to manage their energy and water needs," said Andrew Steer, president and CEO, WRI. "Energy development and responsible water management must go hand in hand."

The report makes several recommendations to help governments and businesses protect water security while minimizing business risks.

First, the report says to conduct water risk assessments in an effort to understand local water availability and reduce business risk. Second, increase transparency and engage with local regulators, communities, and industry to minimize uncertainty. Third, ensure adequate water governance to guarantee water security and reduce regulatory and reputational risks. And, finally, minimize freshwater use and engage in corporate water stewardship to reduce impacts on water availability.

For more:
- see this report

http://www.fierceenergy.com/story/water-risk-underestimated-shale-gas-development/2014-09-05