Finding a Way Beyond Fracking

The process of hydraulic fracturing is an important part in petroleum production and the recent bans on fracking need to reconsidered more as a matter of regulating rather than banning processes without which global petroleum production will be affected.

Hydraulic fracturing or fracking is the process of injecting water, sand and chemicals into wells at high pressures to open coal fissures to release more gas. The possible risk here is the likelihood that there may be a gas leak or contamination of underground drinking water that nearby towns consume.  However, if wells are constructed and designed as per industry regulations, there is no danger of a gas leak and if oil companies comply with high standards the overall risks of the process are mitigated.

Countries like France and some states like New Jersey in the U.S. have banned fracking, while Queensland has banned the chemical, BTEX used in fracking and not the process itself. 

Oil companies however have heightened their safety measures. They are adopting new and advanced technologies and utilizing safer fracking fluids to reduce risks. Moreover oil companies are also investing in research and development to find new technological processes of petroleum production which will mitigate environmental impact.

Take for instance GHC Eastern that has petroleum assets in Eastern Russia and the Eurasian region, the Chairman and CEO, Georges Haligua stated, “While petroleum production is on the rise, measures are being taken to deal with the impact of the ‘fracking’ process. While there is increasing focus on the need for alternate technological process to hydraulic fracturing, the current focal point is on efficient and environmentally friendly, waste water management, safer fracking fluids and well designed wells as per industry and government regulations and standards.”

It’s ‘Oil in the Pipeline’! Oil Pipeline Management in Eurasia

In the oil and gas industry, Eurasia is a vast region that has natural resources in abundance. For instance, Kazakhstan is four times the size of Texas, and generates one third of its export earnings from export of oil and gas. Over the next few decades, Kazakhstan has the potential of earning $ 700 billion from oil and gas, provided there is infrastructural support and industrial development. Rich in oil and gas resources the current oil production is approximately 700,000 bpd. However, there is potential of producing over 3 million bpd, and capitalizing on this potential is possible only if there is considerable improvement in infrastructure to support production.

“Infrastructure in the oil and gas industry is the backbone that helps in increasing oil production as well as helps in reducing the cost of production. Projects such as pipeline management and development in Kazakhstan is imperative in achieving our objective of doubling petroleum reserves by 2012 and increasing petroleum production by 35% in 2011.”

As CEO and Chairman of GHC Eastern, George Haligua said, "there are many partnerships in the pipeline with foreign companies and global investors to improve infrastructure in Kazakhstan. Partnerships between the government and foreign investment companies is a step further in revamping what is called the ‘Great Silk Road’ in the oil and gas industry."

The Changing Rules of IOC – NOC Partnerships

International Oil Companies (IOCs), National Oil companies (NOCs) and local governments have had a long standing partnership in development oil and gas resources. However, going beyond the objectives of investment and technology exchange, the list of objectives has expanded to priorities such as operational excellence and risk management. Local host governments have a growing concern and increased interest in how foreign investors are utilizing resources, especially land and water, and how they propose to comply with environmental and safety regulations. While host governments are increasing pressure, IOCs are also becoming selective in whom they partner with. 

As GeorgeHaligua, global investor and CEO of GHC Eastern, stated, “International oil and gas companies are working closely with local governments. We are working towards creating a common platform from which IOCs, NOCs, the local government, economy, community and environment stand to benefit.”

The underlying objective of IOCs as well as local governments is to use innovative technology that improves operational excellence and safety, is environmentally responsible and economically viable.

Go Green! Smart Technologies for an Intelligent Environment

Whether it’s the Dragon’s insatiable appetite of China or the rising Crescent of Kazakhstan, Turkmenistan, Tajikistan and Uzbekistan; there is no doubt on the increasing demand and exploration of oil and gas resources. As market drivers of supply and demand play, oil investors are capitalizing on this insatiable demand by expanding exploration, drilling, mining and extraction operations. 

But what about the environmental impact of processes like extraction and drilling? What about the carbon and greenhouse gas emissions due to mining?  Are ‘smart’ and green technologies being developed and utilized effectively? 

Investment companies such as Georges Haligua’s GHC Eastern have long realized the importance of adopting smart and green technologies. The company is utilizing emerging green extraction technologies in their natural resource exploration processes not only in Russia but in other regions of Eurasia too. 

Chairman, George Haligua recently mentioned during a keynote conference ‘The rules of engagement have swiftly changed these past decades, responsibility is now of key focus, investors are seeking companies which are pursuing green extraction technologies, it is no longer a choice but an obligation, and an obligation that benefits everyone especially our future generations.