A new pulse was felt this week regarding the issue of ‘fracking’ due to the statements made by the General Comptroller of the Republic, Edgardo Maya Villazón, who stated that Colombia is not sufficiently prepared to mitigate the effects and environmental impacts of this practice.
According to Maya, there are currently no environmental terms of reference for exploitation using this technique, so she requested a moratorium on its application.
The president of the Colombian Petroleum Association (ACP), Francisco José Lloreda, was the first to respond to the statements of the comptroller. He assured that there is currently no unconventional reservoir project in production stage in Colombia and that, on the contrary, the country has been preparing for ten years to develop this technique.
Why does the association defend the implementation of ‘fracking’?
The future of our industry is at risk, given that proven oil reserves last only for 5.6 years and gas reserves for 10 years. Given the conditions of the fields we are finding, where we are discovering less oil and gas every day in what we know as conventional reservoirs, the importance of developing unconventional reservoirs arises.
What happens if the country fails to exploit these resources through this technique?
If Colombia refrains from developing its unconventional reservoirs, we will have a real risk of losing energy self-sufficiency, of foregoing resources that are very important for investment, both national and regional, and we will not be in a position to have medium-term fiscal sustainability, which would necessarily translate into higher taxes for everyone. That is why we have insisted on the importance of developing these reservoirs responsibly and safely.
Read also: ‘Petroleum Association responds to the comptroller regarding questions about ‘fracking».
But there is great concern among environmentalists about this practice. What should we say to them?
There are valid concerns from communities and many Colombians, given that they have heard that this practice will deplete the country's water resources and that they must choose between water and ‘fracking’. Unfortunately, this dilemma has caused concern and rejection, and I say unfortunately because this dilemma does not exist.
Colombia has no reason to choose, because the use of this technology is totally compatible with the greater care and protection of our ecosystems and our natural resources. Unfortunately, there is a lot of misinformation, there is a lot of deception, and I believe that a technical debate, with scientific support, needs to take place, because it has become an emotional and political debate.
The Comptroller assured that Colombia is not prepared to mitigate the risks and impacts that ‘fracking’ would leave. How much truth is there in his statements?
Comptroller Maya is mistaken, and I say this with the respect he deserves. The development process of unconventional deposits is in two phases: the exploratory and the exploitation. Colombia has been preparing for more than ten years to verify whether or not we have a resource of oil and gas trapped in the hydrocarbon-generating rocks. For that phase, not only the country, the institutions, and the companies are ready, but there are also environmental terms of reference that are the strictest at the international level, we have all the technical regulations regarding the operational part of the exploratory activity, and a series of additional regulatory norms to do it in a safe and responsible manner.
«Colombia has been preparing for more than ten years to verify whether or not we have a resource of oil and gas trapped in the hydrocarbon-generating rocks,»,
Francisco José Lloreda,
president of the ACP
And for the second phase…
If we validate that there is oil and gas trapped in those rocks, the country could start to see production in two, three, or four years. For that second phase, the Ministry of Environment is working on a readiness plan, which includes environmental terms of reference that have not yet been issued and that include conducting a series of studies, but for which the country has time.
In conclusion, the country is ready and prepared, and its institutions are to advance with phase one, while we obtain the readiness plan and prepare the country for the exploitation part with all rigor and responsibility.
What risks exist in that first phase?
The possible impacts and risks are very similar to those of a conventional activity and, in any case, they are identified, can be prevented, and the industry is the most interested in carrying it out, because it is the least interested in having accidents and contingencies. The exploratory phase includes drilling a number of wells that allow us to verify whether or not there is oil and gas trapped in the rocks, and it is estimated at around twelve wells to achieve that objective.
The difference between conventional and unconventional reservoirs is that in this case the drilling process descends 2 or 3 kilometers deeper to reach the producing rock where fracturing is advanced, for which significant volumes of water are required and, of course, an adequate treatment of what we know as return fluids, once the fracturing has been done, which is what allows oil or gas to flow drop by drop.
You mention the issue of water, which is another of the major concerns with this technique. What happens with this resource?
It is true that fracturing the rock through a well requires a significant volume of water, but depending on what we compare it to, it is a lot or a little. For example, to drill a well, 20,000 cubic meters of water are required, the well needs to be fractured only once and starts producing for up to 20 years. In the case of rice, to plant one hectare and maintain it for 20 years, 300,000 cubic meters of water are needed, that is, 15 times more than what a well requires, with the difference that the water from the well is reused.
It can be a lot or a little, each person will analyze it, but this indicates that there is an exaggerated concern about the volume of water, when the hydrocarbon industry today only uses 1.6 % of the water resource.
Although Colombia has been preparing for 10 years to implement this technique, the Comptroller stated that there are still gaps in the detailed studies and sufficient data on the environmental issue. Is he wrong?
The Comptroller requested to suspend the exploitation of hydrocarbons from unconventional reservoirs extracted with ‘fracking’, and at this moment no production activity of resources through this technique is being developed in Colombia. In the best-case scenario, this would start in four years. At this moment, we have not even managed to introduce a drill for exploratory purposes. That is to say, the Comptroller is asking to suspend something that has not started.
Furthermore, he requested a moratorium, but what he does not remember is that we have been under a moratorium for more than ten years. Here, moratoriums are not needed; what is required is to proceed to explore responsibly to validate whether or not we have that resource. It makes no sense that in Colombia we are having a whole discussion about whether we produce resources from these reservoirs, when we have not even managed to validate, through an exploratory process, whether we have those resources.
Why then is this controversy opened?
I cannot find an answer, because it is not easy to understand that there are those who oppose Colombia continuing to be self-sufficient in energy matters, there are those who oppose Colombia continuing to receive significant income from the oil industry in the coming decades, and I find it difficult to understand that there are those who prefer that instead of oil revenue, Colombians pay more taxes, because if there is one thing that is clear, it is that what the industry is not in a position to contribute to national and regional income, in the coming years we Colombians will contribute through taxes.
What has the new Government told them about this issue?
The Minister of Mines, María Fernanda Suárez, clearly pointed out its importance and she has taken on the task of advancing educational work, not only within the Government but also externally, to explain its convenience and how it can be advanced in a safe and reliable manner.
You have stated that a more in-depth discussion is needed. What foundations does that debate require?
That discussion must take place with truthful information and scientific evidence, but also appreciating what is happening at the international level.
Contrary to what many indicate, more and more countries are making the decision to develop their unconventional deposits. Moreover, today almost 10.1% of the world's oil production comes from unconventional deposits and there are two million producing wells in the United States alone.
Therefore, this is a debate that must take place with dignity, with rigor, and not with simple emotional phrases, because Colombia cannot risk getting its path wrong when it affects the development and quality of life of so many people.
Balance
This year has been one of recovery for the industry, what balance do you make of the sector?
Compared to recent years of crisis, the sector has lifted its head, but we are far from achieving the development it could have.
As of August of this year, we have drilled 26 exploratory wells, in 2013 we ended the year with 130. At one point we achieved more than 30,000 kilometers of seismic, this year we have not reached 1,000 so far.
In 2014, the industry invested more than 8 billion dollars; this year, if all goes well, it will be 4 billion. This is going to be a decisive moment, not only for the industry but for the country, because the sector has been an ally of Colombia's development and wishes to continue being one; hopefully, it will be possible.
Colombian Association of Oil and Gas