Shale Gas Risk Management: DNV Launches Recommended Practice
Foundation presents recommended practice document as invitation for dialogue
DNV has launched a recommended practice (RP) for the entire life cycle of shale gas extraction, based on risk management principles, industry best practices and standards. The objective is for the RP to form the foundation for future development of a globally recognized standard for safe and sustainable shale gas extraction. DNV is calling for input from industry, regulators, NGOs and other interested parties.
“Controversy and conflict are constant themes as proponents and opponents debate the extraction of natural gas,” said Remi Eriksen, CEO of DNV Maritime and Oil & Gas. “Since the RP combines current best practices and standards in the industry with a risk based approach, it can serve as a common reference point and help bridge the gap between parties with opposing views. Our recommended practice ensures that the contentious issues are managed in an accurate, balanced, transparent and traceable way.”
The framework was developed over an 18-month period, which included collaboration with stakeholders as well as review of existing practices and guidelines. Multiple organizations have already developed recommendations and guidelines, yet a complete risk management framework has not existed.
The RP, being made public for the first time today, recommends a risk based approach to shale operations. It recommends that shale gas operations are monitored and publicly reported, thus establishing proper points of reference and consistent monitoring prior to, during and after operations. The RP also advises carrying out extensive baseline surveys prior to the commencement of any shale gas activities, with information gathered being openly disclosed to all stakeholders, including the general public.
“We believe that companies that embrace our recommended practice will earn increased trust and confidence among the general public and other stakeholders by implementing operational best practices and creating standards for industry to document how their activities are being executed in a safe and responsible manner,” said Eriksen.
The DNV Recommended Practice focuses on the following aspects:
-Safety, health, and the environment
-Management of water and energy
-Infrastructure and logistics