Model Answer
0 min readIntroduction
India is heavily reliant on imported crude oil to meet its energy demands, making it vulnerable to global price fluctuations and geopolitical instability. While conventional oil and gas reserves are limited, estimates suggest substantial shale oil and gas resources within the country. Shale gas and oil are unconventional hydrocarbons trapped within shale rock formations. It is estimated that India possesses significant reserves, potentially capable of meeting a substantial portion of its energy needs for decades. However, despite this potential, the development of these resources has remained largely stagnant, prompting questions about the reasons behind this slow progress.
Availability of Shale Oil and Gas in India
According to a 2013 report by the US Energy Information Administration (EIA), India holds the fifth-largest shale gas reserves globally and the sixth-largest shale oil reserves. Key shale basins identified include the Cambay basin (Gujarat), Krishna-Godavari basin (Andhra Pradesh), Damodar basin (West Bengal), and Assam-Arakan basin. Estimates vary, but the Ministry of Petroleum and Natural Gas (MoPNG) estimates recoverable shale gas reserves at 900 billion cubic meters (BCM) and shale oil at 14 billion barrels. However, these are preliminary estimates and require further exploration and assessment.
Issues Involved in Tapping Shale Resources
Technical Challenges
- Technological Complexity: Shale extraction requires advanced technologies like hydraulic fracturing (fracking) and horizontal drilling, which are relatively new to India and demand significant investment in expertise and infrastructure.
- Geological Conditions: Indian shale formations are often deeper, denser, and have lower permeability compared to those in the US, making extraction more challenging and expensive.
- Water Scarcity: Fracking requires large volumes of water, a precious resource in many parts of India, raising concerns about water stress and competition with other sectors.
Economic Challenges
- High Costs: The cost of shale gas and oil extraction is significantly higher than conventional sources, making it economically unviable at current oil prices.
- Infrastructure Deficiencies: Lack of adequate pipeline infrastructure and storage facilities hinders the transportation and distribution of shale gas and oil.
- Investment Climate: Uncertainty regarding government policies and regulatory frameworks discourages private investment in shale exploration and development.
Environmental Concerns
- Groundwater Contamination: Fracking poses a risk of groundwater contamination from chemicals used in the process.
- Induced Seismicity: Wastewater disposal from fracking has been linked to induced seismicity (earthquakes) in some regions.
- Greenhouse Gas Emissions: While shale gas is often touted as a cleaner alternative to coal, methane leakage during extraction and transportation can contribute to greenhouse gas emissions.
Policy and Regulatory Issues
- Lack of Clear Regulatory Framework: India lacks a comprehensive regulatory framework specifically governing shale gas and oil exploration and production.
- Land Acquisition Challenges: Acquiring land for drilling and infrastructure development can be a lengthy and complex process due to land ownership issues and local opposition.
- Fiscal Regime: The existing fiscal regime for hydrocarbon exploration and production may not be attractive enough to incentivize investment in shale resources. The Open Acreage Licensing Policy (OALP) has been implemented, but its impact on shale exploration remains limited.
Government Initiatives
The government has taken some steps to promote shale gas exploration, including allowing companies to explore for shale gas along with conventional gas in existing blocks under the New Exploration Licensing Policy (NELP). However, progress has been slow due to the aforementioned challenges. The National Policy on Shale Gas and Oil, released in 2018, aims to provide a framework for the development of these resources, but its implementation has been gradual.
Conclusion
India’s substantial shale oil and gas reserves hold the potential to enhance energy security and reduce import dependence. However, realizing this potential requires addressing the significant technical, economic, environmental, and policy-related challenges. A clear and comprehensive regulatory framework, coupled with technological advancements, investment incentives, and robust environmental safeguards, is crucial for unlocking these resources. A phased approach, prioritizing pilot projects and careful monitoring, is essential to ensure sustainable and responsible development of India’s shale resources.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.