Project Title

Unconventional Gas Expert Workshop 

Project Year

2011   

Project Number

EWG 16 2011 

Project Session

Session 3   

Project Type

Standard 

Project Status

Completed Project   
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Project No.

EWG 16 2011 

Project Title

Unconventional Gas Expert Workshop 

Project Status

Completed Project 

Publication (if any)

 

Fund Account

Operational Account 

Sub-fund

None 

Project Year

2011 

Project Session

Session 3 

APEC Funding

100,000 

Co-funding Amount

20,000 

Total Project Value

120,000 

Sponsoring Forum

Energy Working Group (EWG) 

Topics

Energy 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

Not Applicable / Other 

Other Non-APEC Stakeholders Involved

Not Applicable

Proposing Economy(ies)

United States 

Co-Sponsoring Economies

Australia; Canada; Japan 

Expected Start Date

13/12/2011 

Expected Completion Date

31/12/2012 

Project Proponent Name 1

Scott M. Smouse 

Job Title 1

Chair, Expert Group on Clean Fossil Energy   

Organization 1

U.S. Department of Energy, National Energy Technology Laboratory  

Postal Address 1

P.O. Box 10940, Pittsburgh, PA 15236-0940, USA 

Telephone 1

+1-412-386-5725 

Fax 1

+1-412-386-4822 

Email 1

scott.smouse@netl.doe.gov 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Not Applicable 

Project Summary

Unconventional gas resources are resources that historically could not be produced economically, because the technology to extract them was not commercialized or the production cost is too high with available technology. However, recent technological developments have brought significant unconventional gas resources, especially coal bed methane and shale gas, to market. An ongoing project (EWG 12/2011) is beginning to develop an APEC census of these resources as directed by Ministers, that will:


·       Include estimates of each type of unconventional gas that could be produced in each APEC economy, including a timeframe for their availability.

·       Suggest a strategy for a more detailed APEC unconventional natural gas census, and its relationship to other relevant international and national activities.
An expert workshop will be organized to discuss the EWG12/2011 project findings, to share knowledge, and to recommend future work, including capacity building on technologies, the economics of unconventional gas, and needed policy/regulatory structures, such as
best practice regulatory and policy approaches to support the development of unconventional gas.

Relevance

The amount of unconventional gas in APEC economies accessible with recently commercialized production methods is believed to be huge.  A more complete picture of unconventional gas in APEC economies is needed to assess the potential for unconventional gas to meet future energy demand in the region.

Work is in progress in a number of APEC economies and international fora aimed at improving the state of knowledge in this field. The Final Declaration of the Ninth Meeting of APEC Energy Ministers (EMM9), held in Fukui, Japan, in June 2010, instructed the EWG “to conduct an Unconventional Gas Census to evaluate the potential of unconventional resources and to recommend cooperative actions which could increase natural gas output, boost natural gas trade and use, and moderate natural gas prices to the extent appropriate both for producers and consumers in the APEC region.” The EWG has singled this out as a key energy security goal in its medium-term work plan 2010-2015.

APEC funding was approved during the second round of 2011 for the project EWG 12/2011: “APEC Unconventional Gas Census: Evaluating the potential for unconventional gas resources to increase gas production and contribute to reduced CO2 emissions.” That project is expected to result in a final report containing:

·          Estimates of potential amounts of each type of unconventional gas that could be practically and economically produced in each economy throughout the APEC region, including a timeframe for their availability

·          Suggested framework, scope, and content of more detailed APEC unconventional natural gas census, and relationship to other relevant international and national activities.

That project is currently being initiated, and an RFP has been posted on the APEC, EWG and EGCFE websites for a consultant to carry out the project. Four proposals have been received in response and are currently being evaluated.

This proposed follow-up project will bring experts from APEC economies together in a workshop at a key phase of the EWG12/2011 project:

· To discuss the findings of the project to date

· To share up-to-date knowledge on unconventional gas

· To inform the design of the APEC unconventional gas census, and

· To identify the needs for additional work on the subject, including deeper knowledge sharing and capacity building on technologies, the economics of unconventional gas, and the policy/regulatory structures required to develop unconventional gas resources.

A multi-year work plan will be developed as a deliverable by the selected consultant with input from the workshop participants to ensure that the EGCFE’s work in this area meets their needs. This will form the basis of follow-on project proposals to be submitted for possible APEC funding.

Objectives

·          Organize an expert workshop to share experiences and exchange information on the current status of surveys of unconventional gas resources completed, underway or planned for different APEC economies, and on relevant activities by other international fora.

·          Obtain feedback from government and industry experts on the final report of the EWG 12/2011 project, including its recommendations.

·          Provide advice to the EGCFE in the form of a multi-year work plan for follow-on work on an unconventional gas census.

Alignment

This project will assist in funding capacity-building activities, with special emphasis on developing APEC economies. It falls within Rank 2 of the APEC Funding Criteria for all Projects 2012, under the heading: “Projects that directly support the Action Plan in the APEC Leaders' Growth Strategy”, within the area “Development and implementation of the APEC Green Growth Plan,” including work on: “Low-carbon and energy-efficient technologies.”

The Final Declaration of the ninth Meeting of APEC Energy Ministers (EMM9), held in Fukui, Japan in June 2010, instructed the EWG “to conduct an Unconventional Gas Census to evaluate the potential of unconventional resources and to recommend cooperative actions which could increase natural gas output, boost natural gas trade and use, and moderate natural gas prices to the extent appropriate both for producers and consumers in the APEC region. The EWG has singled this out as a key energy security goal in its medium-term work plan 2010-2015.

TILF/ASF Justification

Not Applicable

Beneficiaries and Outputs

The project beneficiaries are expected to be:


· 
Key government officials involved in decision-making on unconventional natural gas exploration and production; fossil power generation strategies; greenhouse gas mitigation; and relevant environmental and regulatory issues.


· 
Geological survey or similar organizations in APEC economies.


· 
Institutes and academia involved in economic and policy analysis in this area.


· 
Industry sector representatives with interests in this topic.


· 
Other international fora active in this topic area (e.g., IEA/OECD).

EWG and EGCFE delegates will be invited to identify key contact persons in their economies, some of whom might participate in or make presentations at the expert workshop. These could include representatives of government and/or relevant industry. The project includes funding for travel and per diem for speakers and active participants from developing APEC economies.

The beneficiaries will benefit in a number of ways:

·  Energy, natural gas and power generation policymakers will benefit from information and data on the availability of unconventional sources of natural gas, and on issues relating to these resources.


· 
Governments and the power generation sector in developing APEC economies will benefit from capacity-building through improved knowledge and access to this information.


· 
Governments will be better equipped to make informed judgments on policymaking regarding unconventional natural gas.


· 
The public stands to benefit through reduced emissions of environmental pollutants due to substitution of more plentiful natural gas for other fossil fuels.


· 
Future generations may benefit substantially from increased sustainability due to the beneficial effects on global climate of considerably reduced accumulation of CO2 in the atmosphere as a result of replacement by natural gas of higher carbon-emitting fossil fuels.

Dissemination

The workshop report will be made available for downloading from the APEC, EWG and EGCFE web sites.

The project results are targeted mainly at the potential beneficiaries identified in Beneficiaries and Outputs.

The results of the project will be shared with the IEA/OECD and other international fora active in this area, and a presentation will be given at an APEC EGCFE Clean Fossil Energy Technical and Policy Seminar. There could be benefits to be gained by presentations made at international gas industry conferences on unconventional gas.

There is no intention to sell outputs arising from this project.

Gender

The EGCFE always encourages participation of women from all APEC members in all its committees, projects, and activities. Women have served in the past as the principal investigators/lead authors of several EGCFE projects. Participation by women in the project steering committee will be encouraged, and the committee will encourage women to participate actively in the project.

The consultant will be instructed to stress the need to involve women in both planning and implementation stages. In the evaluation of submitted bids in response to the project RFP, specific attention will be given to qualified women proposed by the bidder. The Framework for the Integration of Women in APEC (“Accelerate the progress of integrating women in the mainstream of APEC processes and activities” and “Promote and encourage the involvement of women in all APEC fora”), as well as the Gender Analysis Guide and other relevant documents, will be made available to those involved in all aspects of the project; their application will be monitored throughout the project.

The degree of women involvement, in terms of responsibility and numbers, can be evaluated objectively at the conclusion of the project. Of particular interest in this regard, apart from the number and qualifications of women experts in the project, will be their input to the workshop, and the consequences of their input for the project results and conclusions, both as far as gender is concerned and in general.

To the extent that the results of the project assist in making natural gas more plentiful, women in APEC developing economies may benefit from its availability at a reasonable cost to the domestic sector either as gas for cooking or heating, or via electricity generation.

Work Plan

The project will be conducted by a consultant with up-to-date knowledge and expertise in the field of unconventional natural gas resources, under the guidance of an APEC project steering committee composed of EWG and EGCFE experts, as well as government and industry representatives. The timeline of actions will be the following:  

    January 2012: Selection of consultant to organize the expert workshop.


    March 2012: Consultant submits an organization plan for consideration by the project steering committee, consisting of the proposed workshop program, suggestions for expert speakers from the public and private sector, panelists, chairpersons etc., a timetable for confirming workshop speakers, and a checklist timeline leading up to the workshop.


    Spring 2012: APEC representatives invited to nominate experts to attend the expert workshop.


    September 2012: Workshop held.


    October 2012: Report summarizing the workshop, including presentations, briefing papers, and other relevant information, prepared and submitted to APEC for publication.  The report will contain suggestions for follow-on work on unconventional gas census, formulated with input from the workshop participations.  

With regard to the final report, the consultant’s attention will be drawn to the fact that all documents/reports need to comply with the APEC publication guidelines before final payment is made.

Risks

Among risks faced by the Project may be the following:

•   Timely identification and selection of the most appropriate consultant.

•   Ability to obtain workshop speakers who have timely information on unconventional gas resources during a period of rapidly evolving activity in the field.


•  
Alignment with the initial unconventional gas census project EWG12/2011, and consistency of the output from the workshop with the conclusions of the initial project.


•  
Timely project completion and publication of the results.


•  
Appropriate follow-up on the usefulness of the project end-product.

As the project progresses, additional risks may emerge requiring mitigation and management. The consultant will have the responsibility to identify and monitor additional risks, such as those associated with the technologies used to exploit unconventional gas resources.

The risks associated with alignment of the workshop with the initial unconventional gas project EWG12/2011 may be most effectively managed if the consultant selected for the initial project is also charged with the organization of the workshop, assuming that the initial project is proceeding satisfactorily. By eliminating the time needed to issue an RFP and select the consultant, this would also leave more time available for organizing the workshop. Subject to satisfactory performance by the consultant selected to carry out the project EWG12/2011, a waiver is requested with regard to competitive selection of the consultant for the present project

Following consultant selection, the project steering committee and the consultant will be aware of the potential risks, as well as others that may be identified in the process, and will work together to avoid or minimize them. Appropriate follow-up will be discussed in the EGCFE and EWG.

Monitoring and Evaluation

Feedback from government and private sector participants at the workshop will be an indicator of success in the short term in laying the groundwork for the unconventional gas census. This will be sought using a survey document provided to meeting participants.

The medium-term measure of success will be the extent to which the workshop results, in conjunction with those of the initial EWG12/2011 project, are used as a basis for the successful development of the APEC unconventional gas census, and for the next phase in the EWG unconventional gas census program. This can be assessed by evaluating the progress and shape of the next phase of the EWG program in the light of the recommendations contained in this project’s final report, around the end of 2012.Input from other relevant international fora at this stage will be useful.

The longer-term measure of success will be utilization of the APEC unconventional gas census by developing APEC economies in supporting their decision-making regarding exploitation of unconventional gas resources identified in the census.

Linkages

The Asia Pacific Energy Research Center (APERC) may be involved in follow-up activities, such as elaborating low-, medium-, and high-case scenarios for the pace at which the unconventional natural gas potential could be developed over time; and using these scenarios as inputs to gas supply and demand models to assess the impact of newly available unconventional gas produced on gas prices in the Asia-Pacific gas market, the extent to which lower gas prices may encourage increased use of gas in electricity generation, and associated impacts on carbon emissions.

The workshop is expected to involve presentations from organizations in APEC economies that are expert in the field. In the United States, unconventional gas surveys are performed by the U.S. Geological Service (USGS) within the Interior Department. These include surveys for several APEC economies outside the United States. USGS has scheduled unconventional gas surveys for Canada (Western sedimentary basin), Mexico, and Papua New Guinea. It also plans surveys in Chile and China. It has begun to outline unconventional gas basins in Australia, Brunei Darussalam, Indonesia, Malaysia, Philippines, Thailand, and Viet Nam but has not yet begun to assess the amounts of gas available from these basins.

The proposal builds on the work in progress on the project EWG 12/2011 and helps in the transition to the next phase by providing timely expert feedback on the report and input to the future work. It will also benefit from work presently in progress on unconventional gas surveys elsewhere, and active coordination with external activities will help to avoid duplication.

The project will also benefit from related activities in other international fora that have active ongoing discussions on this topic (e.g., OECD/IEA), and representatives of these may be invited to participate in the work of the project steering committee. Representatives of these fora will also be invited to report to the workshop on relevant work in their fora,

The APEC region, especially developing APEC economies, has the highest projected growth for new electricity generation, and is presently projected to rely heavily on coal for much of this new generating capacity. Steps towards making substantial new supplies of unconventional gas available will help to improve the local, regional, and global environments and energy security in the region. The development of an unconventional gas census is a key energy security goal of the EWG medium term work plan 2010-2015. Hence, APEC is an appropriate forum to undertake this project and this is a very appropriate use of APEC funds.

Sustainability

This workshop will complement the results of the project EWG12/2011 to constitute the initial phase of an APEC program to estimate the amounts of gas that might potentially be available from unconventional sources in APEC economies. It is designed to lay the groundwork for further elaboration of the EWG program that will result in an APEC unconventional natural gas census. In addition, the project results are likely to identify more detailed work needed on specific aspects of unconventional natural gas in APEC economies, which could be the object of future APEC projects on these resources. The results will provide guidance to stakeholders and beneficiaries that are involved in related activities in their own economies or organizations.

The next steps following completion of this project will be to launch - under the guidance of the EWG and EGCFE - the development of the database and the collection and organization of the information destined for the APEC unconventional gas census, and possibly APEC work on issues related to the exploitation of unconventional gas resources, such as technical, regulatory or public acceptance issues. This will probably take the form of a further APEC-funded project or projects. At an appropriate stage, APERC is expected to become involved in the work, developing scenarios for the contribution of unconventional natural gas and its impact on gas (see Linkages).

Project Overseers

The main point of contact will be Scott M. Smouse of the United States Department of Energy’s National Energy Technology Laboratory, who is the EGCFE Chair.

Mr. Smouse has 30 years experience in nearly every aspect of fossil energy utilization and power generation, especially coal-based technologies. Since 1996, he has coordinated all of NETL’s international activities, including working with senior Department and other U.S. government officials on a wide variety of bilateral and multilateral initiatives and projects. He has worked with senior government officials, industry, and academia from over 30 countries on a wide range of cooperative research, development, and demonstration projects; technology and market assessments; technology transfer; and policy analyses, primarily related to fossil energy production and utilization. He has chaired the APEC’s Expert Group on Clean Fossil Energy for about 10 years and has served as the Lead Coordinator on Annex IV: Energy & Environmental Control Technologies under the Fossil Energy Cooperation Protocol between U.S. DOE and China’s Ministry of Science & Technology (MOST) since 2001. Also, he served a technical expert and U.S. representative on the Power Generation and Transmission and Cleaner Fossil Energy Task Forces of the Asia Pacific Partnership on Clean Development and Climate. He is a member of the U.S. Executive Committee to the International Energy Agency’s Clean Coal Centre and the Executive Board of the U.S.-China Energy & Environmental Technology Center. Mr. Smouse also provides cross-cutting support to Carbon Sequestration Leadership Forum (CSLF), especially the Capacity Building and Finance Task Forces. He is the lead author of the international sections of the 2010 report by the Carbon Capture & Storage Task Force to U.S. President Obama. He coordinates NETL’s interaction with other organizations with international objectives, including United States Energy Association, World Energy Council, Atlantic Council, Edison Electric Institute, and multilateral development banks. He holds a B.S. in Chemistry from Fairmont State College and a M.S. in Fuel Science (Combustion) from Penn State University. He previously held several positions in the U.S. private sector, with Pope, Evans & Robbins, Inc.; DUSCO Division of Dearborn Chemical Company, a W.R. Grace subsidiary; and Babcock & Wilcox Company.

Cost Efficiency

A considerable amount of time, effort, and funding is being devoted by various organizations towards identifying the resource potential of unconventional natural gas in various regions. By organizing the workshop to provide a forum for exchanging up-to-date information on the most recent developments in this topic, the project will, at a modest cost, provide a reliable basis to underpin the development of the APEC unconventional gas census. This will also contribute very usefully to cost-effective capacity-building activities in this area.

Consequently the proposed project, drawing from existing knowledge and experience elsewhere, is expected to be a cost-efficient use of resources, yielding very substantial savings and providing high value for the funds requested.

Drawdown Timetable

Not Applicable

Direct Labour

Direct labor funded by APEC will consist of the consultant and consultant’s secretary. Total estimated hours are shown in the above table.

Waivers

Not Applicable

Are there any supporting document attached?

No 
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Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
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