Fraccing giant to set up in Broome
Schlumberger, the oil services giant which has become a major benefactor of the US shale boom, has unveiled plans for a $12.5 million supply base in Broome to service a likely frenzy of fraccing activity in the Canning Basin.
It is the first concrete sign of the boom that could sweep across the Kimberley, based on much-hyped expectations the region east and south of Broome could hold some of the world's richest untapped shale reservoirs.
Schlumberger yesterday would not comment on its proposal for Broome, which remains subject to regulatory approval. Its subsidiary M-I Australia has submitted plans with the Shire of Broome for a drilling fluids facility at the town's port.
One of the biggest challenges facing explorers, led by Buru Energy and New Standard Energy, in their quest for Canning Basin riches has been the lack of infrastructure and a dearth of support services. Backed by Mitsubishi, Apache, ConocoPhillips and PetroChina, this year is set to be groundbreaking for the explorers as they embark on big drilling programs.
Houston-based Schlumberger has been riding the US shale boom, sparked by oil and gas companies' need for hydraulic fracturing to break up the shales to release the oil and gas.
The process requires the injection of sand and chemicals-laced fluids, usually at least 1000m beneath the surface. It is a service provided by the likes of Schlumberger, which has more than a dozen specialised trucks on site at some of the bigger shale well operations in the US.
Fraccing has caused widespread concern among environmental groups, which claim the fluids can poison ground water supplies. They are also worried about the disposal of the fluids once fraccing is complete.
