Melissa Stark is a managing director with Accenture's Energy industry group and the global lead for the industry’s New Energy practice. She has two decades of experience in working across all sectors of the energy industry. Ms. Stark focuses on the investment, operating models, capital projects and supply chains required to grow the supply of alternative energy and to sustainably develop unconventional resources. She has authored a number of studies focusing on these areas, most recently Water and Shale Gas Development: Leveraging the US experience in new shale developments. She also spent two and half years as the Assistant Chair of the Technology Task Group of the US National Petroleum Council’s Study, Advancing Technology for America’s Transportation Future, commissioned by former U.S. Secretary of Energy Steven Chu. The National Petroleum Council study is technology-focused, looking at different engine/platform/fuel options for the United States to 2050. Ms. Stark has a Master’s in Transportation from Northwestern University and a Bachelor in Science in Finance from the Haas School at the University of California at Berkeley.

1. Do you think that the discovery of large deposits of shale gas in the US, South Africa and Australia has opened up new horizons in energy? Will a truly global gas market emerge?

Melissa Stark: I believe that the development of unconventional resources will increase the share of natural gas in the generation fuel mix and also increase the use of natural gas in other sectors (e.g. as a transport fuel, as a chemical feedstock). Developers will look to place their natural gas in the highest value markets.

US exports of LNG will probably bring the US prices closer to other markets, but I am not sure about a truly global market. The role of natural gas in each region will be influenced by the legacy fuel mix and prices (e.g. renewables, nuclear, coal) and the policy of the region. For example, the increase in natural gas use in the US has resulted in an increase in coal exports to Europe.

Also, in many cases, unconventional natural gas resources are in markets that currently import natural gas (e.g. Poland, France, Argentina) and this would reduce the need to import.

But I do believe that more natural gas will result in more trade in natural gas, but whether this trade is regional or global, is yet to be determined.

2. A key concern going forward is the operational challenges of hydraulic fracturing on water resources, the environment and the health of local communities. You recently released a report that suggests that countries embarking on shale gas development should leverage on the US experience in hydraulic fracturing and water resource management. What should the top three takeaways for these countries be?

MS:

• Regulation to protect water resources. There are a number of lessons learned in the US on the regulation and standards required for cementing and completions of wells as well as disposal of wastewater. For example, one of the bigger risk areas is surface water disposal which is relevant to all markets.
• Encourage reuse and use of non-potable water sources. The US has more than 200,000 underground injection wells (UIWs), so using UIWs is still the most popular disposal method. In only a few basins is this not possible or costly given the distances (e.g. Marcellus Shale) and therefore reuse has grown. There are an increasing number of examples of reuse and research being done on alternatives to potable water (e.g. use of coal mine water and coal mine drainage in Marcellus).
• Encourage technology investment to improve effectiveness of hydraulic fracturing (thus reducing the amount of water needed) and in water treatment. There are still a lot of areas where technology will make a difference in overall water needs. For example:
  • The productivity of unconventional fields is still relatively low compared to conventional. In new markets, there is the potential to improve the exploration and appraisal stage to drill fewer and more productive wells which would reduce the number of wells and therefore the overall water needs of the field
  • More effective hydraulic fracturing- e.g. through new techniques, better use of data/simulation, proppant technology -- that will result in fewer fractures required and therefore less water
  • Fluids -- use of non-potable sources and different fracturing fluids -- that would reduce the amount of freshwater needed.

3. Do you see a future where technological innovation results in more efficient water resource usage in the hydraulic fracturing process, for instance, using only non-potable water and having a fail-safe method of wastewater disposal?

MS: It certainly should be an aspiration in many markets where water is scarce. I see blending becoming a very important tool to minimize the amount of freshwater needed and maximize the use of non-potable water sources (in the same way that fuels are blended to specification). I also see water treatment being critical, particularly if water is to be returned to surface waters. You can already see this happening in the coal-bed methane (CBM) developments in Australia. However, even when water is treated to freshwater quality, there is a concentrated waste stream that needs to be disposed of.

4. How do your foresee shale gas helping to improve the energy security of countries in Asia?

MS: More natural gas will become available for Asian countries. This supply, whether it ends up for domestic consumption (e.g. China) or comes from other markets, will become available to the region.

Diversity of supply and building a fuel system that is resilient to supply disruptions (that could be international, or as we have seen, caused by severe weather) is probably the best strategy for energy security.

5. As a woman who has spent a number of years in the industry and risen to a senior role, how do you think the sector, as a whole, and individual companies can encourage more women to join the energy industry?

MS: I had the opportunity to speak at the SPE (Society of Petroleum Engineers) IPEC (International Professionals in Energy Conference) “Empowering Women’s Leadership” conference in Kuwait in September. It was inspiring seeing so many young women with a passion for the industry. I would emphasize two things as being critical:

1.Early encouragement and role models
Energy is by and large a technical field, so we have to find those women with an interest in this area and give them mentors/role models throughout their early education. My mother’s degree was in chemical engineering, and although she did not work in energy, my interests in mathematics and science were encouraged from a very early age. I had a role model at home. I was very lucky. This is important as society still stereotypes. If you look at the mix of boys’ toys vs. girls’ toys, for example, it is only in the last couple of years that Lego came out with a line targeted towards girls and the science toys will still be in the boys section.

2.Flexible work schedules In the last year, I have gone to Argentina, Colombia, Kuwait, China, US, Canada and all over Europe. I also have two boys, a 10 year old and a six year old, and I pick up my kids from school most Mondays and Fridays. The flexibility I have in doing my job makes it all manageable. If I had to be in an office from nine to five and also travel and do calls with China at 6am and with the US at 10pm, it would be much, much harder.
Many women want a family and a career, and, like me, will also have a husband with a career. This does not mean women want to work less, but flexibly. Women need to believe that it is possible to balance a family and career, and that they will still advance in their career.

Actually, in the 24/7 global energy industry we all operate in, I think men need this too.