Thursday 28 November 2013

Private oil companies to get right to explore shale gas, oil in their blocks: Oil Secretary

Oil Secretary Vivek Rae has said that the Ministry of Petroleum and Natural Gas is working out a policy framework on shale gas exploration under which private domestic oil and gas players would get the right to explore shale gas or oil in their blocks.

At present, there are about 254 exploration blocks in India of which nearly half of them are allotted to two public sector oil firms ONGC and Oil India for shale gas exploration. Meanwhile, the ministry is framing a policy to allot remaining 120 blocks to private oil companies for exploration. In November, ONGC has started country’s first shale gas exploration programme.

Shale gas or natural gas trapped in sedimentary rocks (shale formations) below the earth's surface is seen as a new alternative to conventional oil and gas for meeting growing energy needs. Shale gas has become an increasingly important source of natural gas in the United States over the past decade, and now interest has spread to potential shale gas reserves in Canada, Europe, Asia, and Australia.

Meanwhile, India has also initiated shale gas exploration programme and it is estimated that recoverable reserves of shale gas in the country is between 6 trillion cubic feet to 63 trillion cubic feet. The move is also a part of oil ministry’s roadmap for cutting India's dependence on imports to meet its oil needs. India currently imports around 80 percent of its oil needs and the Ministry wants this to be cut to 50 percent by 2020 and by 25 percent in 2025 through intensive exploration and exploitation of untapped reserves.

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