23rd September, 2016 (MAINS)

Today’s ANSWER WRITING CHALLENGE FROM GS-I

Q1. It is said the India has substantial reserves of shale oil and gas, which can feed the needs of country for quarter century. However, tapping of the resources doesn’t appear to be high on the agenda. Discuss critically the availability and issues involved. [10marks/2013/GS-1] 100 words.

Please write answer in the comments section.

  • Surabhi Gupta

    1. US has allowed the export of shale gas to countries that are not partners in free trade agreements.
    2. India has been pushing for this decision and has shown interest in an exclusive partnership with USA to tap domestic shale gas reserves, a rich source of energy where USA is the global technology leader.
    3. The gas producers in USA are facing a price depression due to the slower growth in the economy. But India badly needs support in the energy field.
    4. India has allowed full foreign ownership of companies in the oil and natural gas sector, including exploration, pipeline infrastructure and trading. 5. The Petroleum Ministry has decided to seek a 7-year tax holiday from the Finance Ministry on the profits from shale gas business.
    6. Private sector player Reliance Industries, the first Indian firm to acquire US shale gas equity, is also eventually likely to bring shale-LNG to India for marketing through its joint venture with BP.
    7. The shale gas formations are spread over several sedimentary basins such as Cambay, Gondwana and Krishna-Godavari delta on land and Kaveri river.
    8. Gas production from KG-D6 basin began on April 1, 2009. The current gas production from KG-D6 field is about 53 MMSCMD and planned to reach 80 MMSCMD by 2012-13.