Ad Here  
July
August
September
October
November
December
 
 
The Swadeshi Trump Odisha: spectacular win by Naveen Patnaik Revving up the manufacturing sector Welcome focus on core competence Alexa – Talking Wikipedia Polls and promises Permanent secretariat for TN GIM Which side are you, Montek? S V Raju – a ‘good’ true liberal Return to king coal for urea... For whom the bell tolls? Cleaning Ganga – relocate tanneries and install electric crematoria Why land prices zoom in TN? Diamond jubilee of Egmore Samskrt School Shaming of Tamils by Tamil farmers at Delhi Computation of GDP – conundrums continue A Grand Finale for SN’s MS centenary at the US… Dr C Rangarajan returns to Chennai West Bengal: mindless malignancy Sri Lanka votes for change The why of tax incentives GM Technology at last! Kinetic Karnataka Tribute – M V Murugappan Roaring Ro-Ro facility Naidu will soon build a new Hyderabad The rise and fall of Annamalai University The Gulf aviation boom Bihar – Nitish Kumar adopts the Lalu model When nations steal growth from one another… Tax agriculture Quality education through the PPP mode Land reclamation from sea appears cheaper! TIAM turns a full cycle The Ports’ Pasha expands into Tamil Nadu Mu Sigma – is no more Convulsions in The Hindu He saved millions from starvation... Inflation: are we emulating Argentina and Brazil? …and of a popular trade leader Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai How Air-India loses customs... When Ratan Tata visited SRM Gay abandon in pricing PPP mode for upgrading Corporation Hospitals Protest masters... Haul over the coal EEC at the National Media Centre Funding the un-funded Editor's Notes CIPET hqrs to stay at Guindy – for the present? Mersal magnified Solar thermal shines… Robber barons everywhere Another Indian music maestro at the UN New IT products of Ramco in the pipeline… L&T- the specialty of special purpose vehicles Poor representation for Kerala and TN in Cabinet No mega rail project for Tamil Nadu Where a state respects its litterateurs… No Maha Koottani in TN... Kudos to NDTV... A welcome initiative by the judiciary Eternal support for capitalisation of PS banks MHC should not return to its old indisciplined ways Fortune 500 review Focus on quality of power - its only around 170-180V F C Kohli - his concerns all embracing The nuclear option WTO Meet: resolved to meet again Bihar elections - the Rajaji formula worked More Shakthi to Das’ elbow Like Hinduism: many paths to reach God... TGS- The king storyteller Tatas moving out of urea production... Towards speedy justice PC’s preference for professionals Fortune for Indian Airlines The few handicaps... Demise of a media baron... Rs.1600 crore paper board plant of TNPL Whistle-Stop Tour of Raghuram Rajan Delhi Chalo... S Ramanathan – a versatile musician, musicologist Breaththrough in malaria control Preserving for the future Insurance companies bleeding, yet no decision on increasing FDI limit! ONGC at KG Basin Adapt Vajpayee dinner diplomacy Intellectual of rare qualities Naidu’s return augurs well for Seemandhra A proud Madrasi Road development slows down Not just in-laws (and outlaws); they’ve renowned academics at the helm! A yen for wastage… Building loyalty through the stomach Music happens IAS invades NDDB... Parliament in paralysis... Where is Rajaji? Padma Bhushan for A Ramakrishna EVM is tamper-proof Of course, Gujarat is vibrant Delhi returns to BJP Tihar, Puzhal not different from Parappana Agrahara Streamlining mandatory third party cover Medical costs hit the roof... Sweeter prospects for sugar Five star activism stalls development activity Boy, can you beat these? Wise Presidents Godspeed, Chief Minister JJ Lalu’s envy, India’s pride Vibrant Gujarat Pharma – overdose of copying Delhi is distant… The brown list of Venkitaramanan IPL - no surprise this scam Small units prefers to remain small... Modi storms Silicon Valley A glass full of corruption Paytm karo... Welcome changes that testify to Jayalalithaa’s return to health Welcome thrust on trade in Modi’s foreign visits... China invests in India Engineering seats go abegging The sea- saw battle continues... More heat than light CSR and CMI: promise of another Srinivasan Ramanujan... Fall in crude prices help in oil sector reform Sweet news for TN sugar mills Strengthen the base... When TN politicians can emulate Kerala's When the President was rendered homeless… Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated GNS - 100: our first subscriber Put expensive assets created to use... CRS, a jewel among managers, is no more. Align crops to agro climate endowments… Nuclear power at the nucleus Telangana in top gear… An enemy’s enemy is a friend An informal presentation - analytical, forward locking... Tatas moving out of urea production... Muffled voices for merit… Adharma of opposition politics Tribute – UCAL Selvan… Fuel for thought Tribute Build close rapport with business leaders R Sridhar steps down as CEO of Shriram Capital There was flood of milk. Reason: no milk commissioner! Quality silica from Neyveli Valli, they are more marginalised Editor's Says Should we change the official year? More Shakti to resource mobilisation... Cutting the nose to spite the face A rich pool of talent not utilised…. A think tank for Chennai Maximising the micro pricing … Multi-faceted Venkat A friendly business group Noble nonagenarians... He continues the focus on social amelioration Revive development banks... TN accounts for the largest recruits by the IT sector More tributes to GR Auto components surge… Shale gas and its shallow future Discoms deserve better… Measuring roof tops in terms of KW/MW Don’t seem to feel the pulse… When small is no larger beautiful.. Moily’s bold thrust Online not in line with brick and mortar businesses... Modi and the lady Poor quality of university VCs The balancing act CII projects higher growth… Scientists urged to take up farmer-oriented research The rise and rise of KCP A more liberated TN… to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Come elections, come advertisements... IPL type auction for VCs? Contrarian cousins London, London Narayan TN – agglomerate land holdings without alienating ownership Reliance’s TV – 18 ready to launch Tamil News Channel This scant respect for Law Wanted: a second airport for Chennai Gas is the way forward The ‘Ayyo-yes’ is no more Lesson from Chandrababu Naidu Airlines in India: cost and space An inexplicable neglect When online building permits work…. The power-full Hindujas Recognition to role of NBFCs.... Making ‘my Amaravati’... No engine for this car Delhi is distant The star of Spencers is no more Solar, solar everywhere … TELANGANA at last…BUT Readers' Mail Shanti and Sadhana through Music Tribute – Manikam Ramaswami Shipping woes of Chennai companies Things happen by accident and not by design... A C Muthiah – his munificent bequeaths to science The Jan Dhan bonanza Why this malaise in medical education? Russi Mody – a tribute Waning interest in public discussions… A professional at the helm of IRDA... The ‘Jayanthi Tax.’ Infrastructure funding – lessons learnt L&T: focus on infrastructure and more infrastructure… Colour-Chem’s colourful KRVS Liberal imports idling indigenous capacities TN-leverage strength of BHEL, NLC... Banning booze... SoA @ 80 A Grand Finale for SN’s MS centenary at the US… All eyes on Sankara Nethralaya Increasing non co-operation of state leaders Make standards certification mandatory... Limit foreign borrowings to hi-tech, export potential projects... For whom the MIDS bell tolls? Marketing expert Balagopal is no more Rahman at CIC Cement prices continue to rise… Welcome GST Secularism and anti-Hinduism Remembering Indira Sivasailam... Plummeting profits of PSBs Excel Generators provide the vital back-up Tough task taking states together Silver Years of Madras Musings B H Kothari - a tribute Kulandai was a giant Air Asia India will set new benchmarks for budget travel
 
Shale gas and its shallow future
Letters to the Editor

Sir:

I read, with great interest, the article written by Bhamy V Shenoy titled “Little effort to exploit rich reserves”. The writer had queried: “Why is Reliance not investing in Indian, but is investing in US shale gas assets?

    One reason could be that the Indian shale gas permeability characteristics may be different. Current fracking technologies are designed for rigid and brittle shale, rich in organic material and in gas. Indian shale may be younger, softer and more ductile.

In the US, most of the shale gas is located in low intensity of land use, whereas, in India, it is found in agriculture intensive areas.  In the US, mineral rights rest with the property owner. In India, the problems in land acquisition are part of folklore. Fracking requires large quantities of water. The US has fewer water problems than India has.

Reliance is following the corporate India‘s policy of ‘Quit India’.  Government needs to move from business-friendly policy to market - determined policy, which will stop this ‘Quit India’ movement.

In India, 50 per cent of the time from discovery-to-delivery is wasted in lengthy processes of getting various clearances. Out of 117 NELP discoveries as of April 2012, development plan has been approved only for 11 per cent of the discoveries. Very few discoveries are under production, even as we spend Rs 1800 crore in importing oil every day.  The key is to reduce the discovery-to-delivery time.

Does the government have the will to take judicious and speedy decisions to foster India‘s energy independence?

– Uppili R


 

Author’s response:

Uppili has raised some relevant questions regarding the reluctance of Reliance to look for shale gas. He has also raised a few issues of a general nature relating to India’s energy independence.

True, geologic formation of Indian shale reserves may be different from the one found in other parts of the world. Thus, there will be some need for tweaking shale gas technology to develop shale reserves in India. But this may not be the factor preventing Reliance.

While conventional oil and gas needs less than one well per square

kilometre, shale gas needs about 2-6 wells. While in the US and in China the population density is 33.7 and 139.6 per square kilometre, India’s is 370. Similarly, where total renewable water sources of India is 1908 cubic km, the same for China and USA are 2829 and 3069 cubic km respectively. So India is naturally less endowed in this front also. According to the ONGC CMD, India also faces many other challenges like not having access to sophisticated drilling rigs, different services involved in conducting seismic and drilling operations, lags in fracking services, specialised logging, lax standards to prevent the potential leakage of fracking chemicals into water bodies... However, all these are not insurmountable problems.

Even the US faces problems from a strong environmental lobby where shale revolution has been a game changer. Still oil companies, including Reliance, are investing to develop shale  gas production due to huge returns.

Any student of international oil industry will quickly learn that no obstacle is insurmountable for the international oil industry if there are ample oil and gas reserves, a good legal framework and sufficient opportunities to earn an adequate rate of return. While India seems to meet the first criterion of shale reserves, there are big question marks on the latter two criteria. In my view, if the government can create an environment where investors have ample opportunity to earn an attractive return, oil companies, including Reliance, can overcome any obstacle.

Regarding the energy independence suggested by Uppili, our Petroleum Minister has been making outlandish predictions. Earlier in Mangalore on 11 Nov 2012 he had announced that his ministry is planning to reduce oil imports from the current 80 per cent level to 30 to 40 per cent within five years. Then he became even bolder and predicted that India will achieve oil sufficiency by 2020. Instead of making misleading prophecies, Moily should foster speedy decision making to improve oil and gas supply-demand balance.  On that point, I agree with Uppili.

– Dr Bhamy Shenoy

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com