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Frequently asked questions about fracking
This information on fracking has been provided by the Ministry of Economic Development.
More information on fracking is available from industry organisations.
FAQ
What is the environmental impact of fracking?
What regulations govern fracking operations in New Zealand?
What are the fracking fluids made up of?
Does fracking affect the water supply?
Can fracking cause an earthquake?
What are the economic benefits of fracking?
Why are we allowing fracking in New Zealand when it has been banned overseas?
Fracking factsheet from the Ministry of Economic Development [196 kB PDF]
What is fracking?
Hydraulic fracturing, or fracking, involves pumping a water-sand-chemical mixture into underground rock layers where the oil or gas is trapped. The pressure of the water creates tiny cracks in the rock. The sand holds the cracks open, freeing the oil or gas to flow up the well.
Although the cracks are widened by just a few millimetres, this makes substantial improvements to the ultimate recovery of oil and gas.
Fracking has been used around the world for more than 50 years. In recent years, new technology and knowledge has improved the way that fracking is carried out. It is becoming increasingly efficient with lower impacts on the environment.
Why is fracking done?
Fracking has been used around the world for more than 50 years to enhance the extraction rates and ultimate recovery of oil and gas.
How is fracking done?
Fracking is a very specialised activity that is carried out differently depending on the surrounding geology.
In New Zealand, fracking is carried out by trained and experienced international specialists. After they have evaluated the geology of an area and found the area to be suitable for fracking, the water-sand-chemical mixture is injected at high pressure into underground rock.
In New Zealand, fracking is done to the highest international standards.
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What is the environmental impact of fracking?
Experience worldwide shows that environmental impacts are minimal especially at the depths fracking operations are carried out in New Zealand, well away from known aquifers.
New Zealand industry, local government authorities and the government are monitoring information and research undertaken about fracking around the world.
What regulations govern fracking operations in New Zealand?
Prior to hydraulic fracturing activity being undertaken in New Zealand, a company must have first obtained an exploration or mining permit from New Zealand Petroleum & Minerals under the Crown Minerals Act 1991 and associated minerals programmes and regulations.
The granting of a permit gives exclusive right to the mineral set out in the permit. However, such permits do not give a property right over the land described in the permit (the permit area) or an automatic right of access to that land, so permission must be obtained from the landowner.
The environmental effects of hydraulic fracturing are managed by the Resource Management Act 1991 (RMA). Under the RMA, a resource consent is required for activities that have an impact on the land, take or use of water or involve discharges, unless it is permitted in a regional or district plan.
Resource Management Act 1991 (RMA)
Hydraulic fracturing involves discharging a 'fracture' fluid down a well, which is mostly water but also contains some chemicals. While what consents are required will depend on the council and the hydraulic fracturing proposal, resource consents will generally be required to drill the well and construct other infrastructure on the surface, to take and use water and to discharge the fracture fluid down the well. This means that any environmental effects of hydraulic fracturing will be thoroughly considered by councils before operations can begin.
The design, construction, operation and maintenance of all well drilling techniques, whether they be hydraulic fracturing or otherwise, are subject to regulation 12 of the Health and Safety in Employment (Petroleum Exploration and Extraction) Regulations 1999 administered by the Department of Labour.
Health and Safety in Employment (Petroleum Exploration and Extraction) Regulations 1999
All substances used on a petroleum exploration well site are subject to the Hazardous Substances and New Organisms Act 1996, under which all substances are classified and approved by the Environmental Protection Authority. Approved substances are then subject to regulations that regulate the entire lifecycle of the substance - import and export, storage, use, identification, packaging and disposal.
These laws apply on land and to New Zealand's territorial waters.
Hazardous Substances and New Organisms Act 1996Top
What are the fracking fluids made up of?
Water and sand make up 98 to 99.5 percent of the fluid used in hydraulic fracturing. In addition, chemical additives are used.
In New Zealand the frack fluid typically contains the following chemicals in varying quantities depending on the specific requirements of each operation:
- Glutaraldehyde
- Sodium chloride
- N, n-Dimethyl formamide
- Borates salts
- Polyacrylamide
- Guar gum
- Citric acid
- Potassium chloride
- Ammonium bisulfite
- Sodium or potassium carbonate
- Ethylene glycol
- Acids.
The chemical composition of the frack fluid changes after the frack operation as many of the chemicals are absorbed by the rock or degrade due to pressure temperature and their design.
Does fracking affect the water supply?
It is very unlikely that fracking could contaminate water supplies in New Zealand. Here, fracking is usually carried out in rock at least several hundred metres deep - far below aquifers used for drinking water or irrigation.
In addition, petroleum well bores that penetrate aquifers above fracking zones are designed to be isolated and protected by steel casing that is cemented in place.
Frack fluid that is produced by the well after a frack operation is contained in storage tanks to be either treated at treatment facilities or to be re-injected into designated rock formations in accordance with permits issued by regional councils under the RMA.
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Can fracking cause an earthquake?
Technically, fracking can be classed as causing an induced seismic disturbance; however, this is orders of magnitude smaller than an earthquake and typically can only be detected by very sensitive equipment dedicated to monitoring the operation.
GNS Science reports that seismic activity associated with fracking is generally less than magnitude 2.0, and that the induced effect is be minor compared to natural background seismicity. In New Zealand, Geonet records about 18,000 magnitude 2.5 or larger events in an average year. At the lower end of the scale they are described as "vibration similar to passing of light trucks", and "may not be recognised as an earthquake".
What are the economic benefits of fracking?
Without the use of fracking, a large portion of the current onshore oil and gas production in New Zealand would not be able to be produced economically. The recent reserves increases at the Mangahewa and Kapuni fields can largely be attributed to the use of fracking techniques.
Why are we allowing fracking in New Zealand when it has been banned overseas?
The Government is aware of the contested allegations of environmental damage, particularly in the USA, arising from hydraulic fracturing activity. However, the situation in the USA, where there are tens of thousands of active gas wells, is vastly different from that what is occurring here. In New Zealand, this technique is being used in a limited number of situations on oil and gas reservoirs that are deep below the earth’s surface and well away from clean water aquifers.
More information on fracking is provided by these organisations:
GNS Science
Commentary on fracking by Dr Rosemary Quinn
Commonwealth Scientific and Industrial Research Organisation (CSIRO)
Coal Seam Gas Factsheet #3 - Hydraulic Fracturing [49 kB PDF]
The Science Media Centre
Impacts of hydraulic fracturing or 'fracking'
Baker Hughes
Taranaki Regional Council
Hydrogeologic Risk Assessment of Hydraulic Fracturing for Gas Recovery in the Taranaki Region
