Transcript welsh government resources group

Annog buddsoddiad mewn adnoddau naturiol Cymru
Presentation to
WELSH GOVERNMENT RESOURCES GROUP
PROPOSED PROJECT INVESTMENT
One Touch Geo Consultants Ltd
Un Cyffwrdd Cyf.
08706745
09513916
Martin Sanderson - Airborne Geophysics
Fraser Rees - Global Economy / International Business
ENCOURAGING INVESTMENT IN THE NATURAL RESOURCES OF WALES
Who Are We?
• One Touch Geo Consulting Ltd, founded by Welsh Nationals with a personal interest in the safe
economic development of the British Isles.
• Team compiled of highly qualified industry experts sourced globally (predominantly UK Nationals).
• Passion for the Geosciences, Environment and responsible extraction of natural resources
UK Consulting Group
Name:
Expertise:
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International Business
Logistics
Water Resource Protection
Airborne Geophysics
Project Manager
Geology / Environment
Geology / Geophysics
International Business
Geophysics / Seismic
Geophysics / Seismic
Fraser Rees
Mansel Davies
Dr David Lloyd Owen (Envisager)
Martin Sanderson
Paul Taylor
Mark Wilcoxon
Nick Brooks
Adrian Durrant
Jose Camargo
Peter Jones
Mission Statement
Protect: Environment, Natural Resources, and
Economy
Use hindsight and Industry experience to avoid error.
Create innovative ideas using latest technologies to
develop IP of huge value enabling informed decisions
to be made.
Minimalizing the margin for error by using this IP
(INTELECTUAL PROPERTY)
Preserving and making best use the resources and
wealth of Wales, now and for future generations
Objectives
• Use innovative ideas and technologies to address climate change governmental requirements – Recent climate
change conference in Paris states the need for decreased coal emissions and move to shale gas cleaner energy.
• Work with existing Welsh companies and UK professionals wherever possible.
• Creation of Welsh jobs for Welsh people
• Reverse dependency on benefits for Welsh people
• Assist Welsh Government to address public concern about onshore unconventional drilling which has caused
substantial media interest.
• With new up to date information decisions can be informed and as accurate as possible with new information
available.
• Renew governmental interest in the wealth of Welsh ores (tin, gold and other metals)
• Keep public informed at EVERY stage
• Communicate with public and government first before allowing international companies to extract and profit from
our resources
• Address other natural concerns such as flooding and erosion as well as preservation of national heritage
How Will We Achieve This?
• Advice and recommendations from recognized
international experts with real life experience in the
industry who have a vested interested in the UK as UK
nationals.
• Transparent, unbiased easy access and informative
information.
• Real time operations online and available to the public.
• Exploration, drilling, production through to
abandonment done in a responsible, environmentally
conscious and sustainable manner and with public
support
• Encourage the investment and keep Welsh control
through regulations and independent consulting advice
Our Function
Provide independent assistance and advice to Welsh Government,
local councils and general public on the natural resources of WALES
Address / Provide possible solutions
Create
Current economic situation / Global Recession
Wealth, jobs, stability for Wales and Welsh people
Public concern
Awareness, transparency, peace of mind
Lack of data /information available
Unbiased factual information source
Current monitorum
Best standards/practice methods
Fact Based Policies
Encourage & Secure
Responsible Exploration
Environmental Appraisal
Sustainable Development
Our Function
• Giving impartial advice based on fact to the industry, to the
government, councils and the general public.
• General public, council members and government who up to now have
received, it seems, their most informed opinion through websites such
as frack off – restore the balance by inviting academic, industry and
‘frack off’ professionals to the table through our extensive network of
independent experts
• Provide up to date information on latest geoscience methods for
natural resource development in oil, gas and precious metals with
impartial advice on selection of contractors
• Advise on natural hazard mitigation (i.e. floods, erosion, landslides)
through technological mitigation methods
• Provide freely available information to the public via online GIS system
(already in place in many parts of the world)
Texas example of GIS viewer for public use
Be constructive participant in
public meetings regarding
topics of interest that require
geoscience and engineering
expertise
Why Now?
• Improvements in horizontal and directional drilling techniques have enabled access to natural gas reserves across the
world
• EIA (US Energy Information) commissioned estimate of technically recoverable resources, found that 32 percent of natural
gas comes from shale formations.
• USA has just had a ‘Shale Gas Boom’ which assisted in addressing its economic concerns posed by the global recession. As
a result USA dramatically jumped ahead of Saudi Arabia in proven reserves as #1 and decreased reliance on foreign energy.
• The UK Government and David Cameron intend to mirror the US and have an onshore oil/gas boom here in the UK
developing our own domestic gas supply to assist solve our recession and current economic crisis, at a time when N Sea
reserves dwindle.
• Recent climate change conference in Paris pressured for less traditional fossil fuel emissions and promoted gas as the
cleaner energy.
• INEOS now offering 6 % to landowners (due to lack of mineral rights for land owners in UK). Others will follow thus
breaking down the landowner benefit barrier.
• By attracting investment into concessions in Wales new companies could offer the same 6 % or alternatives
• Geophysical surveys, driven by the O&G industry provide a wealth of surveillance information useful to socio-economic
development
Proposed Project Investment
HOUSE OF COMMONS WELSH AFFAIRS COMMITTEE ENERGY GENERATION IN
WALES
FIRST REPORT OF SESSION 2014-15
4. Estimates vary considerably, but one report has estimated that huge shale gas
resources in South Wales could be worth up to £70 billion at current market prices.
13. There is very little information regarding the amount of shale gas or CBM (Coal
bed Methane) in Wales. Such exploratory work as has taken place has been
undertaken by private companies. In 2011, RPS Group, working for Eden Energy,
estimated that parts of South Wales could hold 34 tcf of gas, of which 12.8 tcf was
recoverable.
17. We recommend the UK and Welsh Government work with commercial companies
and others to provide a reliable range of estimates of shale gas available in Wales….
Map Of Exploration Blocks In Wales
From our GIS database
Paucity Of Data In Wales
Seismic Coverage appears to
stop at the Welsh border!
- From our GIS Data Base
Proposed Project Investment
ENCOURAGING EXPLORATION for Unconventional Gas in Wales
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40 new exploration blocks have been offered in Wales under the 14th round.
NO COMPANY WAS ISSUED A LICENCE – MORATORIUM ON FRACKING?
Many reports point out that there is a paucity of data covering Wales.
Of the 40 blocks – which ones represent a potential for further exploration?
Would an exploration company conduct a survey of all the blocks to choose one or two?
Usually, the state would provide the regional data as a starting point.
What is the data that would encourage exploration companies to consider further
exploration on a particular block?
Encouraging Exploration For Unconventional Gas In Wales
GOVERNMENT TO FINANCE THE DATA ACQUISITION AND OWN DATA
AND TO RE-SELL TO COMMERCE
OTC are seeking permission to:
1) Prepare cost estimate budget for undertaking the service.
2) Assisting with the application for (A) loan finance, (B) Equity Financing from Finance Wales /EIB
Financing. (C) Private equity Financing.
3) Assisting with the preparation of tender documents for the competitive bid by Airborne
Geophysical Survey Contractors.
4) Provision of Geographical Information System to manage the data and assist in control of the data
and its use by the public and ultimately by commerce
THE DATA ULTIMATELY ENDS UP IN THE PUBLIC DOMAIN
Where is the funding for Wales?
• The Oil and Gas Authority has released almost 40,000 line kilometers of new and legacy
seismic data from the Rockall Trough and Mid-North Sea High areas acquired during last
year’s £20 million Government-funded seismic survey.
Holtham and the Barnett floor : The Holtham Commission found that :
• Under current arrangements Wales is underfunded by some £300,000,000 million per
year
Fair funding for Wales should be on the basis of relevant need
• Paucity of data specifically in Wales highlighted by slides 13 and 14 from GIS
• Retweeted Adam Price (@_Adam_Price):
• Not one Welsh business in today's Sunday Times top 100 fastest growing firms - though 8
from Scotland and 3 from NI. We need a new approach
Securing Share Of BGS Budget For Welsh Government
One of the four groups that fall under the Welsh Cabinet Office is Skills and Natural Resources
Group (Permanent Secretary Sir Derek Jones)
Politically, in making progress to devolution , the Natural Resources Group (NRG) should take a
keen interest in the water, mineral, oil and gas resources of Wales
Is the Welsh Government is able to or wish to establish a Welsh Geological Surveys (WGS)?
If not, perhaps they would be interested in having some influence on where the BGS is
intending to apply the budget for exploration?
Our suggested solution is that OTGC ltd with its set of consultancy skills could act as a WGS to
ensure part of the BGS budget be transferred to the NRG who would appoint OTGC Ltd to call
for tenders and act as a liaison with the BGS.
Proposed Project Investment
COMBINED AIRBORNE MAGNETIC AND GRAVITY SURVEY
The Consulting Group have concluded that the advancements in the last
10 years or so in airborne geophysical data and GPS are such that new
geophysical surveys are the optimum way to determine regional
prospectivity in Wales and this new data will uncover a goldmine of
information in geological and environmental engineering data as yet
untapped.
• The available vintage data is of very poor quality and unusable for analysis and is freely available from
BGS.
• This poor quality low resolution leads to large margins of error.
• The result is targets missed which could potentially cost companies and investors £millions.
• Our team suggests that our that the majority of the existing seismic information is tailored towards the
exploration for oil in many instances not for unconventional gas, mining or geo hazards
Airborne Geophysical Surveys
• What? Airborne Gravity Surveys provide a map of Earth
gravity variations using a sensor that detects tiny differences
in gravity driven acceleration. Rock density affects gravity.
• Why? Provides regional map of Wales and large scale
subsurface structures and rock type including depth of
sediments and potential organic rich areas
• What? Airborne Aeromagnetic surveys provide a map of
Earth magnetic field over Wales using a sensor that detects
tiny variation in field strength. Magnetic minerals and fluid in
the rocks affect the measurement.
• Why? Provides regional map of mineralogy in the subsurface
and basin fill thickness, magnetic mineral concentrations in
ore bodies, faults and hydrothermally altered rocks and
thermal history (e.g. to not drill/frack in wrong place
unnecessarily)
“Airborne methods are a cost effective method for large
regional reconnaissance surveys and used as aids in geological
mapping and for locating target areas for more detailed
follow-up using helicopter borne instruments. Ground
techniques are usually most effective when used to test
targets discovered by the airborne surveys”
BGS Gravity and Magnetic Maps
50’s / 60’s Gravity & Magnetic Data – digitized in
Courtesy of British Geological Survey
80’s
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We propose to gather modern data
of the country of Wales to provide
very high resolution maps compared
to those acquired 50 years ago as
shown here.
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The new maps will provide the
information that is required by
governmental agencies, engineering
and environmental companies and
natural resource exploration
businesses
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Due to the regional scale of the data
it would be normal for the
Government to take ownership and
control of the valuable information
Why Now?
Courtesy of MPX Geophysics
• Modern gravity meters have at least halved the error in gravity gradient
measurements
• In magnetic surveys sensors and positioning (GPS) have improved in sensitivity
and it is now common to use multiple sensors. So instead of simply total
magnetic field, we can also measure gradient.
• Modern processing algorithms and hardware drastically improve results
• Well use phrase by geophysicists is “rubbish in, rubbish out” meaning that even
the best algorithms will not fix poor quality old input data
• A regional study helps Wales to identify prospective area for energy generation
is shale gas, underground coal gasification mining, preservation of natural areas,
flood defenses or even geothermal
• Regional interpretations of groundwater depths and concentrations are also
possible
• Regional airborne surveys cover more area, have less resolution and cost about
10x less when compared to localized methods such as reflection seismic
• Localized surveys come later and stand more chance of success when
incorporated with initial regional study
Courtesy of British Geological Survey
2013 Case Study SW England (NERC)
“The Tellus South West survey will provide new evidence on resources,
environmental change and natural hazards, to inform policy, decisions and
regulation of development in the region.
The data gathered will be used to generate data products that can be used for
the benefit of both public and private sectors, as well as development in the
resource and environmental sectors. It will also be a major resource for industry,
regulatory authorities and researchers.”
The new data only
covers SW England.
Wales desperately
needs a similar
project and cannot
wait.
http://www.tellusgb.ac.uk/home.html
Port Talbot Steel Works
• Save Welsh business, keep Welsh jobs , increase
Welsh wealth
• Steel will be needed in large quantities by our
neighbours in England and Scotland for their
planned onshore oil and gas revival that had a
slow start but now in operation.
• Provide Port Talbot with a local cheap supply of
energy from
the Welsh concessions that contain the gas
• The coal industry which made Wales rich (and
famous) industrially in the past can be
restructured for 2016 through safe gas extraction
Photo from FT article (4th April) ‘Welsh government
struggles to aid Port Talbot steelworks’
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Coal seam gas is considered clean energy
compared to coal
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Regenerate Welsh industry and fortune with
our own World famous resources
Port Talbot Steel Works
• Other future markets for supply of steel as shale gas boom expands into other
areas.
• British Steel as before in Industrial revolution to fuel “new” industrial
unconventional gas boom .Supply initially our closest allies Scotland England +
Northern Ireland ie Great British market .Thereafter Europe EU as boom continues.
• British is best, top quality why settle for anything less. Implement and high quality
standards and procedures as before. Poorer quality poorer economy.
Set British Standards – Regulate industry
• British is best, top quality why settle for anything less. Implement high quality
standards and procedures as before. Poorer quality products, materials and
corner cutting attitude ultimately results in poor economics .
• Similarly in this instance using the best , latest and top quality techs on hand to
give the best results giving highest possible quality IP ultimately results in better
economic .
• IP INFORMATION, KNOWLEDGE IS KEY
• Set new British standards then implement as European /World standards
thereafter. Pioneer and regulate industry using previous real life examples
learning from hindsight to avoid repeated issues.
Other Projects
OTC has also analyzed and looked into using technologies and innovative ideas to
address the following topics facing the UK and Welsh Government.
These secondary uses of airborne data can help solve some of these issues.
References can be provided.
• Coastal Erosion
• Frack Monitoring
• Transportation Infrastructure
• Natural Hazard Mitigation
• Flooding
• Archaeology
• Natural Resources
• Town Planning
• Induced Seismicity
• Construction
Flooding
BBC
• Tidal From sea and tidal rivers. Often sudden and extreme.
• Flash This surface-water flooding is usually worst when drainage
systems in urban areas are overwhelmed by sudden heavy rainfall,
exacerbated by the concreting over of large areas of soil and
gardens.
• Fluvial On floodplains when a river breaks its banks due to rainfall,
snow or ice melt exceeding the capacity of the water course.
• Groundwater When the earth is waterlogged and can no longer
hold any more water.
• The effects of flooding, and managing flood risk, costs the UK
around £2.2bn each year. This is broken down into several areas:
around £800m is currently spent annually on flood and coastal
defences, while an average of £1,400m in damages are incurred.
Telegraph
• Spending on flood defences would have to increase by £10-£30m
plus inflation annually to maintain existing levels of flood
protection to 2035. More funds of around £150m a year will also
be needed for surface and groundwater flooding. These total
costs could rise to as much as £27bn a year by 2080.
Coastal Erosion
A Defra spokeswoman said: “We are spending more than £3.2bn over the
course of this parliament on flood management and protection from
coastal erosion – half a billion more than in the previous parliament.” The
first year of this parliament had a high flood defense budget set by the
previous government, which was subsequently cut by about a quarter by
the coalition. (Guardian)
Transportation Infrastructure
Projectmapping.co.uk
As the circulatory system of the economy, transportation
is a vital component of prosperity, employment, quality
of life, and effective participation in global trade. –
source: Harvard Business school
High Speed Trains: In
the plans,
Wales seems to have
been bypassed
Airports – hubs for
local business and
enterprise.
Wales has no large
international airport.
Natural Resources
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Welsh gold is highly prized because of
its origin and scarcity, and occurs
naturally in two distinct areas of Wales
Lead and copper have also been mined
in Wales
Promotion of safe fracking in Wales and
UK through supplying more information
to public on how to avoid potential
problems (faults, water issues etc).
Study first, frack later.
Reactivation of coal use the UCG but in
deep safe areas. Transfer to LNG
Ground and surface water monitoring
and planning
From CPAT.org.uk showing mining locations in forests
Archaeology
Recent surveys have included Penycloddiau Hillfort in the Clwydian Range, which
identified numerous earthwork platforms for round huts, and Shrawardine Castle,
near Shrewsbury, where a combination of topographical and geophysical surveys
revealed several phases of development. (CPAT.org.uk)
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Traditionally archaeological topographic
mapping has been carried out using
ground-based survey instruments accurate data but are slow to operate and
ground coverage takes considerable time.
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Airborne Lidar has revolutionized
reconnaissance archeology and
monitoring of historic sites
LiDAR 3D Relief Digital Elevation
Model of part of the Rathcroghan
Complex, Co Roscommon (Data
source : Ordnance Survey of Ireland)
Shaded
Regional Mapping Remarks
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Vintage Gravity and Magnetic Maps in desperate need of updating
New acquisition and processing techniques will drastically improve the maps
Airborne LIDAR will provide a 3D image of each surface feature of the country at a decimeter scale
Complimentary processing of satellite data is proposed to be included
Existing publically available geophysical data is managed by UKOGL and only contains seismic data (which fades out in
Wales!)
We propose to add many other types of geophysical and remote sensing data to the library for governmental, public and
industry use.
Suggest to make lowered resolution GIS overlays to be made freely available
High resolution images of specific areas available for purchase/license from government
Government funding give control of the data to people of Wales
Repeat surveys will provide temporal changes for environmental monitoring and engineering projects (roads, erosion,
urban planning etc.)
Regional Seismic could be added to the database at a later time
Engineering, Environmental, Archaeological, Academic, Council, Energy and Public will all benefit
More detailed studies for mining, environmental, planning, energy, flooding, erosion can be properly designed with the
regional study as a baseline
Actual data can be fed in to models for calibration