Schlumberger Ltd, the world's largest oilfield services company, expects new US regulations for a key natural gas drilling process because of public fears about water pollution, its CEO said on Friday. Asked by an analyst why Schlumberger supported disclosure of "hydrofacturing" fluid ingredients, Chief Executive Andrew Gould said he recognised the concerns of regulators and the public and wanted to be involved in the discussions early on.
"I'm pretty sure that there will be some form of new regulation in order to satisfy the authorities and the public's desire to know that what is being done is safe," Gould said on a conference call on Friday to discuss third-quarter earnings. "And that seems to me a perfectly natural thing to want."
People in gas-drilling areas say their well water has become discoloured or foul-smelling, killing pets and farm animals who drink it and causing illness among children. The technology enables drillers to tap into rock deposits and release natural gas by injecting water and chemicals. The Marcellus is only one of the large US shale formations that the industry expects will supply huge amounts of natural gas.
Gould said it was no accident that shale gas was first exploited in Texas and Louisiana because of extensive oilfield service infrastructure in the region, as well as the regulatory regime compared with other parts of the world. "Pakistan has a huge amount of shale gas," Gould said by way of example. "But, you know, there is not the infrastructure in Pakistan to exploit it today." He also pointed out that the number of wells dotted around the greater Dallas area, which includes part of the Barnett shale, would simply never be allowed in a place like Germany.