Energy - Shale Gas

[ashyanbhog]

So far India’s relentless efforts during the last 25 years to build pipelines to bring gas from Turkmenistan, Iran, Qatar, Bangladesh and Myanmar have remained pipe dreams. Renewable energy sources like ethanol and bio diesel, wind and solar are high on the national agenda. Thanks to Indo-US nuclear pact, India may succeed in increasing the contribution of nuclear energy.

But a recent phenomenon of shale gas — which has brought about seismic changes in the natural gas scene — has not been given the importance it deserves. Energy economists all over the world have started to admire with awe the great achievement of oil companies in the US in developing shale gas resources on a large scale during the last decade.

From Deccan Herald

[ashyanbhog]

The world economy is recovering, and the price of oil too. It has crossed $70/barrel, and could return to $150/barrel, if the recovery continues. Can India do anything new to meet this energy challenge?


Yes, it can change its exploration policy to harness a new energy source — shale gas. No Indian has paid attention to the dramatic emergence of shale gas in the US, which has produced a gas glut. This has slashed the US price of natural gas by 75% from its peak in mid-2008. India must learn from this.

From Times of India blog

[ashyanbhog]

Shale gas is a form of natural gas found in rocks called Shale. North America is the largest producer, accounting for 90% of the world's shale gas output. In the US itself, shale gas accounts for only 6% of total production. However, the idea is spreading and European companies are striking joint ventures with US companies to prospect for shale. The technology is still new and hence expensive. But it is one of the cleaner sources of gas.

In India, shale deposits are found across the Gangetic plain, Assam, Rajasthan and many coastal areas, but neither the government nor the corporate sector has carried out any exploration or estimation.

Shale gas has already brought down natural gas prices by 75%, according to experts. As shale gas production rises going forward, analysts expect world's natural gas reserves to increase by at least 20%. All this is driving American companies to look for shale fields in countries like India, China.

Read the interview of D.K. Pande and Surya Sethi on Moneycontrol