For the time being, until the new wells start gushing out the gas, we have no alternative but to continue our dependence on imports
Although systems are in place for continuous exchange of information on
actual production of natural gas on a daily basis, the fall in production, and the lack of adequate action to drill new areas to discover oil & gas have been explained away as a geographical surprise. But there is more to the story.
Sashi Mukundan, regional president and country head, BP India, has mentioned that two significant discoveries had been made in the deep waters and exploration effort was underway to unlock the next major hub for development in the east coast. He expects that this new discovery should be able to get anything between 40 to 60 mmscmd of gas.
According to the Petroleum Ministry, the new gas discovery in the Krishna-Godavari (KG) basin is the "biggest ever" and it has been named as D-55, which was announced in May this year. At least $7 billion worth of investment by Reliance has been approved in these new fields, as stated by Minister Moily. He felt that this discovery will easily offset the falling output in KG-D6 block.
In the meantime, Reliance Industries Ltd (RIL) has also shown its willingness to give the bank guarantee to get higher gas price from April 2014. Currently, the supplies are being priced at $4.2, while from April 2014 this is likely to increase to $8.4 per mmscmd. The bank guarantee option will eliminate the prospect of litigation and will also help in selling the gas at the revised price, so that neither party loses by selling at a lower price.
In any case, an appropriate formula has to be worked out with regard to the outstanding supplies of the previous contract, when the new discoveries come into full production.
In the meantime, both Reliance and Cairn are also looking at the prospects of getting the relinquished blocks, though the Petroleum Ministry official Vivek Rao stated that for getting these blocks, both will have to make bids like any other operator. It is expected that through NELP X the government will hope to obtain investment commitments worth $5 billion.
All said and done, for the time being, until the new wells start gushing out the gas, we have no alternative but to continue our dependence on imports.
(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)
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as for solar power to replace electricity as such, at the moment, the investment costs are high; you are right that it will take a few more years when solar power panels will be affordable by one and all.
In fact, if the Government truly wanted, they could instal solar panels on the top of all houses and form a solar grid; obtain the power and distribute it at cost. In many places, solar power is also used for electrifying street lamps. On the whole, for a country like India, this is a mammoth exercise that only a government with means can do and save millions, sorry, billions of dollars in replacing other forms of imported fuel consumption.
But the trouble is that we need some State government to start this on a war footing and create competition between all the political parties, so that
"aam aadmi" gets the benefit in the long run.... thanks for your concern.
Middle-class Indians use very little energy compared to their counterparts in the West, which makes the Indian energy crisis less acute than it is in the West. It is sad that so many live in great poverty surviving with very little energy, but as the nation progresses, many of the poor will enter the middle class, and the problem will need some sort of long-term planning.
s in the nation where they have no power in this century
We should try to make progress and not look for state of GOI for any help but let the entrepreneurs do it
Like the solar power water heaters let some entrepreneur do this and be sure that he doesnot have to go through any kinds of Babus who will hold such a license.
Time to stand up against Permit Raj.
No that they have discovered another great field in D-55, and the Govt has approved $ 7 billion in investment, let us hope for the best.
What we need to do is not to rest on one area of fossil fuel. Let it be Reliance, ONGC,
Cairn, GSPC or any other; these do exploration is definitively unknown areas. What we need to do is to seriously work on Coal exploration and development. Coal methane gas is simply "evaporating" and we need to obtain the technology to ensure that no more CBM is lost in inter-departmental rivalry and one-up-man ships. We need to investigate and correct our mistakes on "environmental clearances" and other "clearances" from various state bodies. These have to be brought under "one window". We have too many hurdles to cross in this fashion and this must stop if we want to make some headway.
China with industrial development and having trillions to spare has gone into Africa for gas, oil and other minerals but our corrupt bureaucracy has not done anything.
Reiance is holding gas for higher prices while nation suffers. who has the power to investigate as most are on company payroll. This is how business is done .
Two winters back when I went for an early morning jog in Pune, I could hardly breathe, and my white shorts had turned grey in just about one hour! Business as usual and burning more and more of those fossil fuels is not the solution --- just my thoughts.
Reliance monopoly is similar to GOI and is it possible that Reliance is purposely holding the gas production to get higher prices and let the industry and nation suffer.
Why is nation being made a target of GOI and a single firm