Water stress in shale gas extraction areas could lead to conflict with other users says report

Hydraulic fracturing for extraction of shale gas is expected to face water stress in future, leading to conflict with other water users, according to a report from World Resources Institute (WRI).

The WRI report, "Global Shale Gas Development: Water Availability and Business Risk", finds that 38% of the world’s shale resources face high to extremely high water stress or arid conditions.

According to the report, 386 million people live on the land where shale resources are located, while 40% of the shale gas areas are located in regions where irrigated agriculture is the largest water user.

With shale gas projects facing water stress, it could compete with other water users leading to conflict, especially in areas where there is high baseline water stress, the report added.

High baseline water stress areas include areas where more than 40% of the available water supplies are already being withdrawn for agricultural, municipal or industrial purposes

WRI president and CEO Andrew Steer said: "Water risk is one of the most important but underappreciated challenges when it comes to shale gas development.

"With 386 million people living on land above shale plays, governments and business face critical choices about how to manage their energy and water needs.

"This analysis should serve as a wake-up call for countries seeking to develop shale gas.

"Energy development and responsible water management must go hand-in-hand."

The report ranks 20 countries with the largest shale reserves and points out that 40% of those face arid or water stress conditions.

According to the report, China, Mexico, South Africa and Libya are among the top countries with shale gas reserves but facing water shortage.

Around 38% of the shale resources are located in areas that are either arid or under high to extremely high levels of water stress, 19% are in areas of high or extremely high seasonal variability and 15% are in locations exposed to high or extremely high drought severity.