Value at Induced Risk: Injection-Induced Seismic Risk From Low-Probability, High-Impact Events

摘要

The increasing number of damaging earthquakes, induced by underground injection of fluids, demonstrates the need of a structured methodology for critical thinking about and clear communication of induced seismic risk. Using the Pohang, South Korea, geothermal project and the damaging (US$75M) local magnitude M-L 5.35 induced earthquake in 2017, we present a straightforward methodology that summarizes induced seismic risk in a single time-dependent number, the Value at Induced Risk (VaIR). VaIR quantifies the amount of economic losses that will not be exceeded at a given confidence level. Our method reveals that the Pohang project was exposed to a 2% chance of causing economic losses of US$140M or more (1% of US$3.2B or more). The high risk could have been identified during the sequence of reservoir stimulation, lasting almost 2 years. VaIR opens new ways to assess and communicate risk to all stakeholders for informed risk management decision making.