Presentation from the 2014 World Water Week in Stockholm

Transcription

1 Presentation from the 2014 World Water Week in Stockholm The Author(s), all rights reserved

2 TRADING SECURITIES? A COMPARATIVE STUDY ON REGULATING FRACKING IN EUROPE (SPAIN) AND USA (TEXAS) Elena López-Gunn (ICATALIST), Regina M. Buono (King s College London) Beatriz Mayor (Universidad Complutense, Madrid)

3 Outline of presentation 1. Key Messages 2. Energy Security and Water Security: Entwined securities? 3. Fracking and Water Security 4. Regulating fracking for energy and water security: comparative analysis 5. Conclusions Questions?

4 Key messages: shale gas and water 1. Energy insecurity is increasingly leading to water insecurity. 2. Scale matters in water and energy security: energy is global/national, water is local/regional. 3. Risk reduction comes down to good regulation and implementation.... Risk and Transparency!

5 Energy insecurity is increasingly leading to water insecurity 1. - Shale Gas for Energy for water? NOT always. - Water for Shale Gas Energy? Almost ALWAYS. 2. There is increased energy demand coupled with concern over energy security. Shale gas is the game changer for both: has a knock-on effect on water security (and insecurity?).

6 Energy security Water security The uninterrupted availability of energy sources at an affordable price (IEA, 2014). - - Long-term: infrastructure investments in line with economic developments and environmental needs. - - Short-term: ability of the energy system to react promptly to sudden changes in the supply-demand balance. The availability of an acceptable quantity and quality of water for health, livelihoods, ecosystems and production, coupled with an acceptable level of water-related risks to people, environments and economies (Grey and Sadoff, 2007). Energy Security Water Security

7 Fracking in the USA & EU: A Game Changer? United States Already in full exploitation phase + upward trend First experiments 1947, commercialized by 1950 Today: 0.5 million wells; produced 10,371B ft 3 in 2012 (U.S. EIA) A Game Changer? Potential for energy independence: US a net exporter by 2022 (EIA) Lower energy prices European Union Still in exploration phase, exploitation expected first in Poland, UK, and possibly Spain e.g. Spain: First exploitation in next 2-3 yrs? A Game Changer? External drivers: Political pressure because of Ukraine + other geopolitical vs Internal drivers: public opposition + Europe 2020 Strategy vs competitiveness U.S. EIA (2011) based on data from various published studies.

8 Entwined securities? Global Energy flows... but local water implications (b) Global Market (a) Regional Markets Major trade flows of natural gas among the EPPA regions in 2030, No New Policy (Tcf,)(Paltsev, et al, 2011)

9 Nexus thinking: Environmental Impact of Fracking (including water security)

10 Regulating Water for Fracking In Texas (Players and Rules in U.S. Federal Law) Fracking process is exempt from most major federal regulations (Halliburton Loophole). US EPA authority to protect water used in fracking is drawn from: (1) Safe Drinking Water Act (42 U.S.C. 300f) Fracking activities generally excepted from SDWA Exception to exception: diesel fuels open small window of regulatory authority (2) Clean Water Act (33 U.S.C ) National Pollutant Discharge Elimination System (NPDES) permit program regulates the disposal of flowback into surface waters of the United States Take-away: Federal authority limited in this area

11 Regulating Fracking In Texas (Players and Rules in State Law) Most regulatory responsibilities lie with the state Texas Railroad Commission permitting of drilling, exploration, production, post production, recycling and waste disposal. Texas Commission on Environmental Quality surface water permitting; water quality Texas Surface Water Owned by the State of Texas; requires permit for use Texas Groundwater Owned by the landowner; rule of capture Regulation by local groundwater districts Exception for oil and gas operators Debate over whether fracking qualifies for exception Texas Disposal Wells. Source: Texas Tribune (2013)

12 Regulating Fracking in Texas Public Disclosure Rule 3.29 (since 2012) requires disclosure of chemical ingredients and water volumes in fracking fluid Disclosure via FracFocus: public Internet registry Once uploaded, information is public information unless it qualifies as a trade secret

13 Public Reaction to Fracking in Texas? Texas is generally very friendly to oil and gas production. Private-property rights are KING. BUT fracking is encroaching on urban areas and drawing resistance. Dec 2013 Dallas prohibits wells less than 1,500 feet from homes Voters in Denton, Texas, to vote on banning fracking in Nov 2014 Movements are growing in other Texas cities. Photo: Frack Free Denton

14 Regulating Fracking in the Spain- EU LEVEL (Players and Rules in EU Law) The EU, after some reports from the European Parliament (EP Jan 2014) - No direct regulation; only indirect regulation via already existing EU regulations a. Environmental Impact Assessment: does not apply to fracking (not included in Annex 1, thus optional) b. Regulation of chemicals - (REACH Regulation) c. The Water Directives (Groundwater; Water Framework, Drinking Water) d. Air emissions and climate change ( Strategy) e. Protected areas and conservation directives (e.g. Habitats Directive) f. Other: Access to Information

15 Regulating Fracking in Spain (Players and Rules in Spanish Law) 1. SPAIN - central state Energy Regulation: Ley de Hidrocarburos Federal state competence, royalties to the state Environmental Regulation EIA also applied to exploration phase Water regulation: Spanish Water Law - (e.g. priorities between uses, issuing water concessions, and discharge permits) 2. REGIONS Responsible for land use planning, agriculture and water in non-transboundary basins Navarre, Cantabria and La Rioja - issued regional laws to ban fracking in their regions

16 Regulating Fracking in Spain EIA: applies to the exploration phase BUT 1. Capacity to regulate 2. Who regulates? - Water concessions and discharge permits Public Disclosure EIA

17 Public Reaction in Spain Multi level game? State level: Constitutional Court has ruled that the banning of fracking by the autonomous regions is unconstitutional (June 2014) Cantabria e.g initiative for Institutional Declaration signed by 102 mayors of Cantabria s municipalities against fracking - civil society The regions are now taking steps to express the concerns of their citizens (and pol. gains reg/local elections 2015?) by other (political) means - : Basque Country e.g. collection of 30,000 signatures (July 2014) and marches against fracking (protected areas affected by fracking permits)

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19 Conclusions Some reflections Next steps? FrackPrint - Baseline / Monitoring data = KEY ISSUE - Participation: Involving citizens, extension services, or country conservation agents in data collection and monitoring - Regulatory Cost: Development of inexpensive and easy-to-operate sensors, operated by volunteers to expand data collection - Disclosure/EIA: Need for better access to government and industry data

20 Questions? Thank You!