The better role of Shale (Oil and Gas) in our energy and energy architecture developments

1. Energy For One World
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America’s Energy Future. The shale gas revolution. How about it?
By: Adriaan Kamp, M. Sc. - Founder/Director Energy For One World
This article was inspired by the most recent State of the Union: America’s plan for an “all-out on local
energy”- and the subsequent discussions in the industry on its’ implications, its’ opportunities and its’
challenges.
I am presently leading the civic organisation, Energy For One World, aiming to improve the outlook in
our global energy system. We look at the reliability, affordability, sustainability of Energy – around the
globe. Both politically, as well as from a societal and business point of view.
http://www.energyforoneworld.com
But let me begin.
This week, I was made aware of the (special) house hearing on the approach the
EPA has taken into the investigation of drinking water at the Pavillion field, in Wyoming.
In addition- I was asked - by some of my readers- to clarify or further explain what I
would do to improve the industry outlook in the gas shale exploitation of America.
Well- I like to share with you the latter.
On my observations on this specific house hearing, I would suggest you to read our
specific blog-notes on this issue on our civic venture blog
http://energyforoneworld.blogspot.com
I promised to give you my take on the present on-going market developments with shale
gas as well as my predictions for America's energy future from my civic venture point of
view.
I'm looking at America's energy future from both a national as well as a global
perspective, and would thus like to share three points on the shale gas revolution in
the US and it's consequences.
First and foremost- I do not believe that America's Future Energy dream is well
served by focusing on becoming energy independent.
This idea stimulates the wrong ideas and behaviours in the American people. I believe
that we live in a global village - and no matter how hard it is to deal with and maintain
relationships with others- and at times- assertive or aggressive nations- our human task
is to reach-out, to bridge and to create long and lasting, and serving interdependencies.
And to solve our global problems - together. Energy is a global problem and deserves

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not just national approaches but also international leadership. America needs to be part
of that leadership.
What does this mean?
I would like America to develop an healthy energy interdependency, surely based on its
natural resources and talents- and to create reciprocity in America's economic system,
leading the US to become a leading exporter of energy transition solutions worldwide.
The world needs that.
Secondly: We need to ask ourselves: what comes after shale gas rock?
Instead of jumping on the bandwagon and creating a large supply chain industry to
service the shale gas revolution to increase profits - we have to be a little bit more
cautious and think through what comes next. We may need shale gas rock for a much
longer time period then presently forecasted, and as alternatives are not yet up for
grasp. In addition, I'm sceptical of the present burn & earn business model and practice.
We may find smarter ways in leveraging this gas, for exampe, by blending it in with
cleantech and energy conservation measures.
Thirdly: I have serious doubts on the sustainability of the shale gas rock practice.
From an environmental point of view: I was part of the group that initiated new research
at Shell, which investigated opportunities to inject nano-sensors down-hole in order to
monitor where the fracks are and where the chemicals are going. But while this research
is nowhere near complete, I can tell you that our production engineers can't yet see or
can't yet know exactly where the chemicals and other stuff is go-ing, right now.
But also from an economic point of view: The steep decline curves - and the unequal
formations- of the rock are already in themselves a reason to be very cautious of future
predictions. We have seen this in our industry over and over again: Low hanging fruit is
produced first. What comes after is the tough part to produce.
So what do we need to do- then?
We need to make a habit of making smart energy conservation solutions the Nr. 1
in the energy industry and industry policy. Cleantech power generating solutions should

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be the Nr 2. - and on the third place only the workhorses of the fossil fuel industry. We
need to start changing the way energy is brought to homes, and in the cities and in the
cars- on a large scale.
The energy industry has a habit of maximising profit through speculation, which exploits
natural resources. Can we focus on building an energy industry that is again serving the
people?
Natural Gas prices will soon pick up, because experts expect a rapid decline in America’s
conventional gas production, leading to shortages amidst ever-increasing demand. Thus,
many large oil and gas corporations have invested in shale gas now in order to take
advantage of high future prices.
We need to figure out how to deliver the lowest cost, lowest earth resource consumption
options to our homes.
(I know about the present struggle in Germany to get this right, but there is also some
learning to do with changing the prevailing business models.)
I believe in an America of abundance. Abundance in life and life styles. However, in
order for this to be achieved, America needs to show respect and leadership (to the
world) over the use of natural resources.
The shale gas industry- worldwide- is in need of policies and best practice guidelines in
order to avoid unnecessary harm. In Canada, the natural gas industry themselves have
offered to define best practices for monitoring and registering the chemicals and
application of this technology. I understand the EPA wishes to do the same in America.
I welcome and applaud that.
Actions away from home can have great consequences and impact at home.
Think of the 2008 subprime mortgage loans and banking crisis in US, think of Greece,
think of the present Euro-zone crisis. Now, our political leaders are beginning to
understand and react to the fact that the financial system needs global, rather than
national and regional, oversight.
However, this kind of thinking has not yet pervaded our world energy system.

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There is no independent institution, organisation with experts, or forum which discusses,
reviews, plans or agrees on the robustness, stability, affordability or sustainability of
(decisions taken) in the energy system in the US, in China, in Africa or in Europe.
China looks after China. The US looks after the US.
International dialogue between countries on energy production and consumption
behaviours of natural resources needs to increase, because that will determine the price,
affordability and outlook for us all.
America's Energy Future is hence linked to my Energy Future. America's behaviour in its
oil and gas industry is hence linked with my future outlook on this industry. Thus, a fall
or crisis in America's shale gas market sector will affect us all. Gas will be short and
prices will rapidly rise.
Finally, a couple of weeks ago, America's credit rating offices Moody's and Fitch
downgraded 7 or 8 European countries on their credit rating.
There is no such thing yet in Energy Land.
But if I were to staff such an organisation now then I would advise the analysts to lower
the credibility rating of the US on its present energy outlook, because of its present
plans and approach taken with shale gas.
Adriaan Kamp- Founder/ Director Energy For One World
Mr. Kamp is presently directing the civic venture Energy For One World and is a regular speaker
on World Energy Matters. Adriaan worked 22 years in international project and business
development management positions (5 countries) in the Upstream Oil and Gas sector (Shell Group
International) and as private entrepreneur. Studied Applied Physics (M.Sc.) at the University of
Delft.

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