IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v225y2018icp710-731.html
   My bibliography  Save this article

Disclosing water-energy-economics nexus in shale gas development

Author

Listed:
  • Calderón, Andrés J.
  • Guerra, Omar J.
  • Papageorgiou, Lazaros G.
  • Reklaitis, Gintaras V.

Abstract

Shale gas has gained importance in the energy landscape in recent decades. However, its development has raised environmental concerns, especially, those associated with water management. Thus, the assessment of water management aspects, which inevitably impact the economic aspects, is crucial in evaluating the merits of any project exploiting this energy source. This paper provides a review of the economic and environmental implications of shale gas development around the world. Furthermore, to demonstrate the interplay between the various technical, environmental and economic factors in concrete terms, we report on a specific set of case studies conducted using an integrated decision-support tool that has been implemented to model and optimize shale gas development projects. The case study results confirm that the gas breakeven price decreases with expansion in scale of the shale gas development, i.e. increasing the number of well-pads in the system. However, scale also increases the options for water re-use and recycle in drilling and fracturing operations, which can result in lower freshwater withdrawal intensity. Moreover, under water scarcity scenarios, the choice of well-pad designs that are inherently less water intensive was found to be more cost-effective than water re-use or/and recycle strategies at reducing net freshwater demand. Similar trends were observed when the impact of wastewater quality, i.e. total dissolved solids concentration, on the optimal development strategy of shale gas plays was investigated. The results of these case studies reveal that greater efforts are needed at characterizing freshwater availability and wastewater quality for the evaluation of both the economic and environmental aspects of shale gas development.

Suggested Citation

  • Calderón, Andrés J. & Guerra, Omar J. & Papageorgiou, Lazaros G. & Reklaitis, Gintaras V., 2018. "Disclosing water-energy-economics nexus in shale gas development," Applied Energy, Elsevier, vol. 225(C), pages 710-731.
    • Handle: RePEc:eee:appene:v:225:y:2018:i:c:p:710-731
    DOI: 10.1016/j.apenergy.2018.05.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261918306937
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2018.05.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lozano Maya, Juan Roberto, 2013. "The United States experience as a reference of success for shale gas development: The case of Mexico," Energy Policy, Elsevier, vol. 62(C), pages 70-78.
    2. Jeff Tollefson, 2013. "China slow to tap shale-gas bonanza," Nature, Nature, vol. 494(7437), pages 294-294, February.
    3. Wang, Jianliang & Mohr, Steve & Feng, Lianyong & Liu, Huihui & Tverberg, Gail E., 2016. "Analysis of resource potential for China’s unconventional gas and forecast for its long-term production growth," Energy Policy, Elsevier, vol. 88(C), pages 389-401.
    4. Boudet, Hilary & Clarke, Christopher & Bugden, Dylan & Maibach, Edward & Roser-Renouf, Connie & Leiserowitz, Anthony, 2014. "“Fracking” controversy and communication: Using national survey data to understand public perceptions of hydraulic fracturing," Energy Policy, Elsevier, vol. 65(C), pages 57-67.
    5. Michael L. Aucott & Jacqueline M. Melillo, 2013. "A Preliminary Energy Return on Investment Analysis of Natural Gas from the Marcellus Shale," Journal of Industrial Ecology, Yale University, vol. 17(5), pages 668-679, October.
    6. Whitmarsh, Lorraine & Nash, Nick & Upham, Paul & Lloyd, Alyson & Verdon, James P. & Kendall, J.-Michael, 2015. "UK public perceptions of shale gas hydraulic fracturing: The role of audience, message and contextual factors on risk perceptions and policy support," Applied Energy, Elsevier, vol. 160(C), pages 419-430.
    7. De Silva, P.N.K. & Simons, S.J.R. & Stevens, P., 2016. "Economic impact analysis of natural gas development and the policy implications," Energy Policy, Elsevier, vol. 88(C), pages 639-651.
    8. Bilgili, Faik & Koçak, Emrah & Bulut, Ümit & Sualp, M. Nedim, 2016. "How did the US economy react to shale gas production revolution? An advanced time series approach," Energy, Elsevier, vol. 116(P1), pages 963-977.
    9. Jeff Tollefson, 2012. "Air sampling reveals high emissions from gas field," Nature, Nature, vol. 482(7384), pages 139-140, February.
    10. Hu, Yan & Hall, Charles A.S. & Wang, Jianliang & Feng, Lianyong & Poisson, Alexandre, 2013. "Energy Return on Investment (EROI) of China's conventional fossil fuels: Historical and future trends," Energy, Elsevier, vol. 54(C), pages 352-364.
    11. Yuan, Jiehui & Luo, Dongkun & Xia, Liangyu & Feng, Lianyong, 2015. "Policy recommendations to promote shale gas development in China based on a technical and economic evaluation," Energy Policy, Elsevier, vol. 85(C), pages 194-206.
    12. Jenner, Steffen & Lamadrid, Alberto J., 2013. "Shale gas vs. coal: Policy implications from environmental impact comparisons of shale gas, conventional gas, and coal on air, water, and land in the United States," Energy Policy, Elsevier, vol. 53(C), pages 442-453.
    13. Hammond, Geoffrey P. & O’Grady, Áine, 2017. "Indicative energy technology assessment of UK shale gas extraction," Applied Energy, Elsevier, vol. 185(P2), pages 1907-1918.
    14. Weijermars, Ruud, 2013. "Economic appraisal of shale gas plays in Continental Europe," Applied Energy, Elsevier, vol. 106(C), pages 100-115.
    15. David J. Murphy & Charles A.S. Hall & Michael Dale & Cutler Cleveland, 2011. "Order from Chaos: A Preliminary Protocol for Determining the EROI of Fuels," Sustainability, MDPI, vol. 3(10), pages 1-20, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Boying & Zheng, Mingbo & Zhao, Xinxin & Chang, Chun-Ping, 2021. "An assessment of the effect of partisan ideology on shale gas production and the implications for environmental regulations," Economic Systems, Elsevier, vol. 45(3).
    2. He, Li & Feng, Hushen & Luo, Pengfei & Luo, Yugeng & Xu, Yang, 2023. "Groundwater stress induced by shale resources development in the US: Evolution, response, and mitigation," Applied Energy, Elsevier, vol. 340(C).
    3. Hong, Bingyuan & Li, Xiaoping & Song, Shangfei & Chen, Shilin & Zhao, Changlong & Gong, Jing, 2020. "Optimal planning and modular infrastructure dynamic allocation for shale gas production," Applied Energy, Elsevier, vol. 261(C).
    4. Hong, Bingyuan & Cui, Xuemeng & Wang, Bohong & Fan, Di & Li, Xiaoping & Gong, Jing, 2022. "Long-term dynamic allocation and maintenance planning of modular equipment to enhance gas field production flexibility," Energy, Elsevier, vol. 252(C).
    5. Calderón, Andrés J. & Pekney, Natalie J., 2020. "Optimization of enhanced oil recovery operations in unconventional reservoirs," Applied Energy, Elsevier, vol. 258(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Jianliang & Liu, Mingming & McLellan, Benjamin C. & Tang, Xu & Feng, Lianyong, 2017. "Environmental impacts of shale gas development in China: A hybrid life cycle analysis," Resources, Conservation & Recycling, Elsevier, vol. 120(C), pages 38-45.
    2. Auping, Willem L. & Pruyt, Erik & de Jong, Sijbren & Kwakkel, Jan H., 2016. "The geopolitical impact of the shale revolution: Exploring consequences on energy prices and rentier states," Energy Policy, Elsevier, vol. 98(C), pages 390-399.
    3. Liuyang Yao & Dangchen Sui & Xiaotong Liu & Hui Fan, 2020. "The Psychological Process of Residents’ Acceptance of Local Shale Gas Exploitation in China," IJERPH, MDPI, vol. 17(18), pages 1-20, September.
    4. Louis Delannoy & Pierre-Yves Longaretti & David. J. Murphy & Emmanuel Prados, 2021. "Assessing Global Long-Term EROI of Gas: A Net-Energy Perspective on the Energy Transition," Energies, MDPI, vol. 14(16), pages 1-16, August.
    5. Li, Boying & Zheng, Mingbo & Zhao, Xinxin & Chang, Chun-Ping, 2021. "An assessment of the effect of partisan ideology on shale gas production and the implications for environmental regulations," Economic Systems, Elsevier, vol. 45(3).
    6. Martínez-Espiñeira, Roberto & García-Valiñas, María Á. & Matesanz, David, 2019. "Public Attitudes towards Hydraulic Fracturing in Western Newfoundland," Energy Economics, Elsevier, vol. 84(C).
    7. Jingxuan Feng & Lianyong Feng & Jianliang Wang, 2018. "Analysis of Point-of-Use Energy Return on Investment and Net Energy Yields from China’s Conventional Fossil Fuels," Energies, MDPI, vol. 11(2), pages 1-21, February.
    8. Yao, Liuyang & Sui, Bo, 2020. "Heterogeneous preferences for shale water management: Evidence from a choice experiment in Fuling shale gas field, southwest China," Energy Policy, Elsevier, vol. 147(C).
    9. Yu, Chin-Hsien & Huang, Shih-Kai & Qin, Ping & Chen, Xiaolan, 2018. "Local residents' risk perceptions in response to shale gas exploitation: Evidence from China," Energy Policy, Elsevier, vol. 113(C), pages 123-134.
    10. Wei, Yi-Ming & Kang, Jia-Ning & Yu, Bi-Ying & Liao, Hua & Du, Yun-Fei, 2017. "A dynamic forward-citation full path model for technology monitoring: An empirical study from shale gas industry," Applied Energy, Elsevier, vol. 205(C), pages 769-780.
    11. Liuyang Yao & Qian Zhang & Kin Keung Lai & Xianyu Cao, 2020. "Explaining Local Residents’ Attitudes toward Shale Gas Exploitation: The Mediating Roles of Risk and Benefit Perceptions," IJERPH, MDPI, vol. 17(19), pages 1-13, October.
    12. Fan, Lurong & Xu, Jiuping, 2020. "Authority–enterprise equilibrium based mixed subsidy mechanism for carbon reduction and energy utilization in the coalbed methane industry," Energy Policy, Elsevier, vol. 147(C).
    13. Zhaoyang Kong & Xiucheng Dong & Bo Xu & Rui Li & Qiang Yin & Cuifang Song, 2015. "EROI Analysis for Direct Coal Liquefaction without and with CCS: The Case of the Shenhua DCL Project in China," Energies, MDPI, vol. 8(2), pages 1-22, January.
    14. Xiaoqian Guo & Qiang Yan & Anjian Wang, 2017. "Assessment of Methods for Forecasting Shale Gas Supply in China Based on Economic Considerations," Energies, MDPI, vol. 10(11), pages 1-14, October.
    15. Lambert, Jessica G. & Hall, Charles A.S. & Balogh, Stephen & Gupta, Ajay & Arnold, Michelle, 2014. "Energy, EROI and quality of life," Energy Policy, Elsevier, vol. 64(C), pages 153-167.
    16. Chen, Yizhong & Li, Jing & Lu, Hongwei & Yang, Yiyang, 2020. "Impact of unconventional natural gas development on regional water resources and market supply in China from the perspective of game analysis," Energy Policy, Elsevier, vol. 145(C).
    17. Clarke, Christopher E. & Evensen, Darrick T.N., 2023. "Attention to news media coverage of unconventional oil/gas development impacts: Exploring psychological antecedents and effects on issue support," Energy Policy, Elsevier, vol. 173(C).
    18. Kis, Zoltán & Pandya, Nikul & Koppelaar, Rembrandt H.E.M., 2018. "Electricity generation technologies: Comparison of materials use, energy return on investment, jobs creation and CO2 emissions reduction," Energy Policy, Elsevier, vol. 120(C), pages 144-157.
    19. Hongshuo Yan & Lianyong Feng & Jianliang Wang & Yuanying Chi & Yue Ma, 2021. "A Comprehensive Net Energy Analysis and Outlook of Energy System in China," Biophysical Economics and Resource Quality, Springer, vol. 6(4), pages 1-14, December.
    20. Ma, Zhengwei & Pi, Guanglin & Dong, Xiucheng & Chen, Chi, 2017. "The situation analysis of shale gas development in China-based on Structural Equation Modeling," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1300-1307.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:225:y:2018:i:c:p:710-731. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.