Saturday, 3 December 2016

Shale Gas

Throughout the world, different types of sedimentary rocks contain natural gas deposits, for example sandstones, limestones and shales. Sandstone rocks often have high permeability, which means that the tiny pores within the rock are well connected and gas can flow easily through the rock.

In contrast, shale rocks where gas is trapped as a continuous accumulation throughout a large area usually have very low permeability, making gas production more complex and costly.

The shale gas boom in recent years has been due to modern advancement in technology in hydraulic fracturing (fracking) to create extensive artificial fractures around well bores.

 Shale exists in sedimentary basins and typically forms about 80 per cent of what a well will drill through. As a result, the main organic rich shales have already been identified in most regions of the world. Often, enough is known about the geological history to infer which shales are likely to contain gas or oil or a mixture of both. However, the potential zone within shale sequence, the amounts of gas present and what  proportion of it can be recovered technically and economically, cannot be known until a number of wells have been drilled and tested. The amount of condensate present in the gas can also vary considerably with important implications of economic production, as condensates command a high price in energy markets. Three factors have come together in recent years to make shale gas production economically viable: z Technological advances in horizontal drilling; z Hydraulic fracturing; and z Increase in natural gas prices in the global market. Horizontal drilling and hydraulic fracturing have dramatically improved daily production rates in USA and also increased the total ultimate recovery potential of individual wells to as high as 54 per cent.



Shale Gas Resource in India :

Having understood that shale rocks, which are the original source rock, have now also become a reservoir or a producing formation, it naturally follows that in every hydrocarbon producing country, there is every likelihood of shales holding hydrocarbons in varying degrees. It is interesting to note, that shales even in non-producing basins could be holding hydrocarbons, opening up a potential in not only the 7 producing sedimentary basins, but in all the 26 basins. It has already been mentioned earlier that the task before exploration and production companies is basically to visualize/learn geological properties of shales to be able to produce oil/gas from them. India, too, has a long experience of exploring and producing oil and gas from on-land sources, and the presence in-depth of shale rocks is largely known more in the 7 producing basins, basically due to the vast exploration already done in these basins. There are no firm estimates of Shale oil/gas in the country


In India, the national oil companies had undertaken a large scale of on land exploration during the last several decades, which has now been supplemented both by them and private companies after the launch of the Production Sharing Contracts (PSC) regime. It is believed that they have drilled several thousand wells, particularly in Cambay, KG and Cauvery basins. These wells had yielded a wealth of data regarding the extent, depth and nature of shale formations in the different sedimentary basins. However, in most other on-land basins, the details of the shale deposits are yet to be fully ascertained. Even the cores of the wells may not have been preserved properly for an analysis of kerogen content. It is also wellknown that under the New Exploration Licensing Regime (NELP) and preNELP contracts, a large number of onland wells have been drilled whose data is available with Directorate General of Hydrocarbons (DGH) for unhindered usage in promotion of the nation’s acreage. This data has to be suitably scrutinized and a full picture developed on the prospectivity of shale gas in the country. We are also aware that the EPINET, the corporate data repository of ONGC (and similar one of Oil India Ltd.) has already hosted a large amount of data on their respective networks. The above data banks need to be networked with active involvement of the NOCs for the shale gas exploitation programme to be implemented on fast track basis.





Role of Nuclear Power in the Energy


The installed capacity of electric power generation in the country today is about 275 GW and out of that, the nuclear component is 5.5 GW (2 per cent).

In terms of the total electrical energy produced in the year 2014-15, nuclear contribution (37000 million units) is about 3.25 per cent of the total, thanks to a much higher capacity utilization in the nuclear power generation compared to all other electricity generation systems put together.

Per capita electricity consumption in India is about 1000 kWh, nearly one-third of the world average of 3000 kWh and less than one tenth of the per capita consumption in USA

Since human development index (HDI) has a close linkage with per capita electricity consumption, (Chidambaram 2013) there is no doubt that for an improvement of HDI from the current value of 0.65 to about 0.8 will require at least 4 times increase in our electricity production.

Even today, nearly 25 per cent of population does not have access to electricity and in a major part of rural, semi-urban and even urban areas power cuts are for several hours a day

Nuclear power in which fuel cost is less than 15 per cent will indeed have a stabilizing influence on the power tariff in the future. For making a comparison of cost of electricity produced by different sources, it is necessary to compare the electricity tariffs of plants set-up more or less in the same zone of the country and at same time. Table 3 which makes such a comparison between thermal and nuclear power clearly shows the cost competitiveness of the latter which does not enjoy any direct or indirect government subsidy. Though the capital cost per MW of solar or wind energy is much lower than that of nuclear, this advantage is offset by their low capacity factors




During the 1990s and the first decade of the 21st century, the impressive performance of nuclear power stations (over 80 per cent capacity factor and safe operation of about 350 nuclear power plants) all over the world, the increasing concern over CO2 generation from thermal power plants and their adverse effect on global climate change generated a renewed interest in nuclear power.