Indigenous endowments of primary
and renewable energy resources play an important role in determining any
country’s energy policy. Natural gas is currently the most promising source for
providing sustainable, affordable and low-carbon energy for the economic
development of the world. In the near future, unconventional resources like
shale, CBM, gas hydrates would play an increasingly important part in maintaining
the gas supply balance. Recent assessments indicate that the potential of
unconventional gas resources could not only exceed the current conventional
reserves, but that they are also spread widely throughout the world, making
them more readily accessible to the consuming markets.
With the development of shale gas
resources around the world, improved energy security and economic prosperity is
becoming a reality for many countries. While US is the leader in terms of
commercialisation and development of the shale gas sector, other countries are
clearly keen to be part of the shale gas revolution. Following the leads of US,
China has become the second-largest global producer of unconventional gas. In
countries, such as Poland, significant exploration has already taken place. In
other countries, such as India, the resources are certainly present but much needs
to be done in terms of infrastructure and investment before full exploitation
is viable. It is somewhat evident that replicating USA experience in other
countries will take more time than expected.
US shale gas success can be
attributed to several factors such as advanced technology, efficient and large
service sector, availability of gas infrastructure to enable quick
monetization, support of US government, laws and regulations, and deep
engagement with communities to address issues related to water management and hydro
fracturing (seismic impact).
The Indian gas market is
characterized by strong demand driven by a large population and energy
intensive industries. Depletion of conventional resources, and increasing
demand for clean energy, forces India to hunt for alternatives to conventional
energy resources. Intense importance has been given for finding out more and
more energy resources; specifically non-conventional ones like CBM, shale gas
& gas hydrates, as gas is less polluting compared to oil or coal.
India has followed various models
to facilitate exploration in its vast sedimentary areas and this includes
nominated blocks for national oil companies, award of discovered fields on
competitive bidding basis, and award of large number of blocks under the New
Exploration Licensing Policy (NELP) launched towards the end of nineties. India began awarding coal bed methane (CBM) blocks for
exploration in 2001; and in the four rounds of bidding 33 blocks have been
awarded predominantly to NOC’s and Indian private companies.
Ministry
of Petroleum and Natural Gas (MoPNG) has finalised policy guidelines on
exploration and exploitation of shale gas and oil by national oil companies
under the ‘nomination regime’. Based on this, Oil and Natural Gas Corporation
(ONGC) would take up 175 blocks and Oil India Ltd (OIL) another 15 blocks, in
three assessment phases.
To encourage the allocation of
huge amounts of capital, services, equipment and human resources to
unconventional gas developments, (Government of India) GoI will have to enact
regulatory frameworks that include: fiscal and contractual stability, appropriate
and rigorously enforced health, safety and environment regulations, steady and
predictable offerings of acreage in bid rounds, and concession or leasing terms
that provide investors with sufficient time for the delimitation and development
of the productive acreage.
The key to unlocking gas shales,
tight gas sands and coal-bed methane (CBM) has been and continues to be
collaboration and advanced technology, which enables solutions to be
identified, developed and deployed reducing the risks and costs of production
and minimise the environmental footprint of developing these vital resources.
Infraline Energy Oil & Gas Research Team
No comments:
Post a Comment