SHALE GAS CAN TRANSFORM ENERGY
GEOPOLITICS
Shale Gas is a form of natural gas that is
trapped within shale (a fine grained sedimentary rock) formations, shale gas is
known for more than a century. It was not seen as a viable alternative to
petroleum fuels because shale drilling (which is done horizontally) is more
expensive than conventional oil drilling. Shale was not worth extracting with
conventional technology. Now a new technology, 'fracking', plus horizontal
drilling, have greatly increased shale gas productivity, so extraction is now
viable. Gas can readily substitute fuel oil in industry and power generation,
and kerosene in cooking. But the bulk of oil consumption is in transport.
Shale gas has the potential to transform
the entire geopolitics of world. It is because
- Shale gas
can hugely reduce the dependence of most countries (including India) on
imported energy.
- Second,
the geopolitical clout of major gas exporters — Russia, Iran, Algeria,
Bolivia — will fall dramatically.
- Third,
some countries may start converting their transport fleets into gas-based
ones, hitting the demand for and prices of petrol and diesel.
- Fourth,
converting gas into oil will become economic.
- Fifth,
The major International Shipping transport route is likely to undergo
major change. For example, the finding of oil shale in Brazil and
Venezuela along with massive deposits of shale oil in Canada has altered
the American shipping route by concentrating its movement North South of
Americas, rather than the whole of the world.
- The
American interest in Persian Gulf has seen a major decline.
- The
concentration of shale oil deposits in Ukraine has allowed Ukraine to
bargain with Russia, as it may not be dependent on Russian oil at all.
That will allow it to take help of American technology.
- The clout
of OPEC has decreased and so have been the falling oil prices.
INDIAN
CASE
India has large shale deposits, with good
prospects in the Gangetic plain, Punjab, Rajasthan, Gujarat. Tamil Nadu ,
Andhra and the north-east.
Large shale gas discoveries should embolden
India to convert transport fleets in all cities from petrol and diesel to CNG.
That will reduce not only energy dependence but pollution too.
PROSPECTS
& SIGNIFICANCE OF SHALE GAS FOR INDIA
India has signed a memorandum of
understanding with the United States Geological Survey for cooperation. The
USGS is to identify the potential areas and amount of gas available in India.
PROSPECTS
The petroleum ministry has identified six
basins for exploration in the first phase-Cambay, Krishna-Godavari, Cauvery,
Ganga, Gondwana and Assam-Arakan.
1.
The Assam-Arakan basin is
considered to have significant shale gas deposits.
2.
Unlike conventional oil fields
are drilled first vertically and then horizontally. Shale gas is found in tight
reservoirs that have poor permeability. Water, air, chemicals and sand are
forced at great pressure down the drill and through perforations in the rock to
stimulate the flow of gas. This process is known as hydraulic fracking.
Availability of abundant water is major pre-requisite for this process.
3.
Recently completed drilling of
four wells in Durgapur, Raniganj, Jharia and North Karanpura near Hazaribagh.
We are studying these sample for gas potential. Reliance Industries is also
making rapid moves in the field. It has acquired 45 per cent stake each in
Atlas Energy's Marcellus Shale.
Problems
1.
Not going to be an easy affair
as land acquisition could be a major problem Gangetic basin are densely
inhabited. Shale gas is a land and water intensive project.
2.
Hydraulic fracking, which is
used for shale gas drilling, is fraught with environmental challenges, said
environmentalists. Where fracking used, the ground water had been found
contaminated by methane.