Report: Water shortages could limit shale development across globe

Roughly 38 percent of the world’s shale resources in countries like China, Mexico and South Africa are dealing with high water stress or dry weather, according to a new report.

The World Resources Institute (WRI) said in a report Monday that water shortages could harm shale development on every continent except Antarctica.

{mosads}“Water risk is one of the most important, but underappreciated challenges when it comes to shale gas development,” Andrew Steer, CEO of WRI said in statement on Monday. “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,” Steer said.

The development report ranks water stress across the 20 countries with the largest shale resources, and in 40 percent of them, future production will likely happen in dry conditions or under “high water stress,” WRI said.

In China, which holds the largest commercially viable shale gas, 60 percent of its resources are in regions with high water stress or dry conditions.

That adds on a “worrying fact given the country’s existing environmental concerns,” WRI said.

The U.S. and Brazil already face dry conditions and water stress, but the report can help “ensure there is enough water available for industries, farms, and people, even if shale development advances,” said Paul Reig, the report’s lead author.

The WRI recommends countries conduct water risk assessments to chart local water availability and reduce business risk, increase transparency, engage with local regulators, and minimize freshwater use.