IDENTIFYING THE PITFALLS ON INDIA’S WAY TO BECOME ENERGY SECURE

-the ultimate solution

Ishaq Sutaria (B.E. PETROLEUM, MIT PUNE)Bilal Ansari (B.E. PETROLEUM, MIT PUNE)

Nabil Dafedar (B.E. PETROLEUM, MIT PUNE)Farhan Nore (B.E. PETROLEUM, MIT PUNE)

WHAT CAN BE DONE TO MAKE INDIA ENERGY SECURE?

We, the people of India need to realize “ITS HIGH TIME NOW”

The study says India has vast resources of untapped oil and gas potential, then “WHAT ARE WE WAITING FOR?”

India needs to change its opinion about O&G industry

“LOOK AT THE BIGGER PICTURE” O&G industry – pollution, not really !O&G industry – economic success, employment

The media can play a huge role in this.

“MEDIA IS CONVINCED INDIA IS CONVINCED”

Look beyond the conventional

India has the sixth largest resources of coal in the world with huge CBM potential. The Top most benefit of CBM Is that Methane is a clean fuel. Taking out methane from coal reduces mining hazards. De-methanisation of coal seams prior to mining increases mine safety CBM extraction does not affect the physio-chemical properties of coal. CBM has distinct advantage over coal on environmental and quality aspects. Methane recovered from coal mines not only significantly reduces the green house gas emission but also substitutes for fuel. It costs a fraction to drill a CBM well compared to a conventional one.

“CBM GAS: A GAME CHANGER THAT INDIA SHOULD TURN TO”

The next big question is, WHAT IS THE ROLE OF THE GOVERNMENT ?

Another major challenge identified by the industry is obtaining necessary clearances and permissions (most importantly the environmental clearance). It takes an average of 60 approvals across 7 different ministries for any energy project in India.

“MAKE THE PROCESS SIMPLE”

The Government should encourage more R & D and innovation so that we do not hire foreign companies for services.

“WE NEED TO DO OUR OWN WORK”

The government should give freedom in deciding the gas prices so as to attract more and more investors.

If deciding the right strategy is difficult, then just follow the footsteps of Brazil and Norway.

“Petrobras has been able to remain successful in large parts due to managerial and political independence from the national government” -Andrew Fishman in his report Petroleum in Brazil

SUMMARY AND CONCLUSION

The oil and gas sector in India has untapped potential, calling for more intense exploration. Hence there is a meritorious case for catalyzing actions leading to the development of domestic hydrocarbon exploration and production industry.

Bringing a change in opinion of India regarding the oil and gas industry will solve half the issue and the Indian media needs to play a huge roll in this.

The dream of India’s energy security originates from the possibility of double rewards. Not only would India stop fearing being dependent on energy supplying nations, but would gain windfall.

Today, Norway and Brazil have set an example for India’s E&P sector by not only being self- sufficient in their hydrocarbon quest, but also commanding a place of respect in the global E&P sector.

O &G

PUBLIC AND

MEDIA

INDIAN GOVERN

MENT

ENERGY SECURITYECNOMIC GROWTHEMPLOYMENT

REFERENCES

1. It’s our turn now: E&P Partnership for India’s energy security, Report by PriceWaterhouse Coopershttp://www.pwc.in/en_IN/in/assets/pdfs/publications-2012/e-p-report-8.pdf

2. Economic Times Dialogue on Energy Security, June 16th 2012

3. The Energy Debate: Can India reduce its import dependence, organized by Network 18, October 1st 2012 4. Statistical Review of World Energy 2012, BP

5. Approach Paper to 12th Five Year Plan, Planning Commission of India