Transparency and Trust: ExxonMobil and Shale Gas in Germany
The battle between the reality and perception is one which has rarely been fought so ardently as in the case of shale gas. In an industry that is often accused of secrecy, ExxonMobil has taken an unusual step in its German operations – complete and utter transparency.
ExxonMobil, which was forced to cease operations in the province of North-Rhine Westphalia following a moratorium on hydraulic fracturing last year, has responded to the controversy surrounding shale gas with openness. In addition to launching a website solely to provide information on its German shale operations (http://www.erdgassuche-in-deutschland.de/), ExxonMobil decided earlier this year to commission an independent study, commissioned into shale and its environmental effects. The results were published in April of this year.
If the measure seems self-assured, that’s because it is. Speaking to Natural Gas Europe, Dr. Ritva Westendorf-Lahouse, spokesperson for ExxonMobil, said that though ExxonMobil had faith in the safety of the process, it was aware that many others did not share that faith.
“We recognize that, although we have 100 per cent confidence in our information, many people wish to hear from independent experts as well,” Dr. Westendorf-Lahouse said. “We therefore decided to initiate a broad information and dialogue process conducted by neutral, top quality academics in order to ensure a high degree of expert scientific input and the maximum credibility and transparency for information resulting from this process.”
Headed by Prof. Dr. Dietrich Borchardt from the Hemholtz Center for Environmental Research and facilitated by Dr. Christoph Ewen of Darmstadt University and consultant Ruth Hammerbacher, the study brought together a core group of 9 scientists, as well as 35 other scientists at various stages of the study. The study’s experts were tasked with assessing the holistic risks and effects of hydraulic fracturing. The results of the study are, true to the promise of independence, unbiased with a number of potential risks of fracking examined including emission output, groundwater contamination and seismic events.
Independent facilitator, Ruth Hammerbacher of consultancy agency Hammerbacher Beratung & Projekte, admits that the study could have been a death knell for ExxonMobil and shale gas in Germany.
“A rejection of the fracking-technology and/or of the specific other technological needs in order to exploit the unconventional reservoirs was a possible outcome and – as far as could be seen from outside the company – was responsible for occasional nervousness,” she says. “On the other side ExxonMobil was very confident about their technological and management level.
“As far as the facilitators could see, ExxonMobil felt that they work on a high level of technology and operations management and so were very confident that the study would probably produce new aspects and recommendations but that they would be manageable.”
The report does not attempt to shy away from the worst-case scenarios of shale gas extraction, pointing to the possibility of various risks, however slim the possibility. This, Ms. Hammerbacher says, was an important measure to ensure the transparency of the report – and also, crucially, to prove to those suspicious of the study that it was impartial. Despite the efforts taken to ensure impartiality, however, Ms. Hammerbacher says that certain opponents have continued to criticise its neutrality, going so far as to accuse the panel of being bribed.
“This obviously happens within the political scenery, especially done by players who have bound their profile to an anti-position,” she says. “In any case the anti-position will try to doom the study and will always find applause with citizens who feel personally affected and so put pressure on politicians.
“In evaluating this situation one must ask for the alternative. The nearby alternative for the anti-position would have been to damn the expert group as bought by industry. This was done before the study was delivered.”
The accusations, unfounded as they are, are easily dismissible in light of the scope taken in the report and the refusal to shy away from the rarer but most serious risks of hydraulic fracturing.
“Because of the critical view the study takes (i.e. using worst case scenarios and pointing out the new dimension of risks because of the expanded area affected by drilling and production), this is not plausible any more. So even in the eyes of affected citizens ExxonMobil has financed a study which gives room for critical aspects – and at the same time says that ExxonMobil and industry can go ahead if certain steps and conditions are watched.”
Faced with the risks highlighted in the study, Dr. Westendorf-Lahouse says that ExxonMobil has long followed the report’s recommendation that safety technology be used to minimise such risks as leaks, accidents and fugitive emissions, to create a “culture of safety”.
“All industrial processes entail risks, and shale gas development is no different, but oil and gas companies are in the business of managing those risks every day,” she says. “Safety has been at the core of our corporate culture for many years. A commitment to safety is not simply a ‘priority’; it is a value, a value that shapes decision-making all the time, at every level. Safety is embedded in every level of the workforce, reinforced at every turn and upheld above all other considerations.”
Though she acknowledges the risks highlighted by the report, she says that those risks are controllable.
“When shale gas exploration and production is undertaken using best practices, the risks can be successfully managed.”
Germany, though possibly tempted by estimates of potential shale gas reserves of up to 22.6 trillion cubic metres, is also taking care to assess the possible risks to the environment as a result of shale gas before giving the practice the go-ahead. A study by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety last week tentatively said that no ban on hydraulic fracturing is currently needed. However, despite this, the Ministry has recommended that strict regulations be put in place and that more scientific study be carried out. Despite this cautious approval, ExxonMobil may not find the way clear for fracking as of yet. In the same days as the German Federal Ministry study was released, the Economic and Environment Ministries of North Rhine-Westphalia, said that it does not believe that hydraulic fracturing should go ahead at the moment until more concrete evidence of its effects exists.
ExxonMobil has been extremely proactive in addressing the concerns of German citizens, particularly since the release of Gasland which introduced a series of misconceptions on the process of fracking into the German public arena, misconceptions ExxonMobil has taken pains to change. This includes the setting up of the site Erdgassuche in Deutschland, as well as the website Europe Unconventional Gas.
“In autumn 2010 unconventional gas production received some negative publicity in Germany, much of which was generated by the anti-development Gasland film,” Dr. Westendorf-Lahouse says. “Many of the claims in the film have since been shown to be misleading or untrue. However, despite the facts, some of those claims continued to circulate.”
Additionally, despite no legislation existing requiring ExxonMobil to, the company has taken the step of publishing its fracking fluids and chemicals on its website. The company has gone even further and called for others to follow suit.
“This is part of our commitment to transparency. This is not required by law, and as far as I'm aware, we are the only gas producing company in Germany disclosing the fracturing fluids (also historic ones) in detail. In addition, ExxonMobil has called for a Europe-wide approach to fracturing fluid disclosure as we believe that communities have a legitimate interest to expect transparency in this important area.”
The massive potential of shale in Germany, a country which imports around 85 per cent of its gas needs a year, hinges on its environmental risks and tight legislation around the resource. While the future of shale gas in Germany, for the moment, may remain uncertain, ExxonMobil’s commitment to maintaining lines of communication and ensuring transparency appears to be anything but.