8/11/2019 Article Energy Security

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ENERGY SECURITY: UNCONVENTIONAL RESOURCES FUELLING THE FUTURE

World-wide demand for energy continues to increase at rates never seen before.

Projections of continued growth in demand propel the oil and gas Industry to look after

new and Unconventional Resources. US reached its Peak oil in 1971, production in the

North Sea ields has already peaked, most of the oil ields around the world are in declining

phase and no signiicant discoveries are being made. The top 5 oil importing Nations

(China, US, India, Japan and Germany) are importing more than 25% of the worlds total oil

production. Population giants India and China would be responsible for almost half of the

growth in global oil demand in the coming future and this trend is expected to continue till

2035. Expecting the conventional Oil and Gas resources to meet this ever increasing

demand would be just an illusion.

Looking at the alternative energy resources, we see a promising Energy future fuelled by

unconventional resources like Shale Gas, Coal Bed Methane, Gas Hydrates and Heavy Oil.

The estimated reserves of these unconventional resources are much higher and their

economic extraction would make them viable alternative for the conventional oil and

natural gas resources. Technological advancements in Shale Gas Extraction have helped US

decrease its Natural Gas imports, and US is set to become an exporter of Natural Gas. China,

US and especially Australia have shown what impact CBM production could have on their

natural gas supply chain. Alaska and Russia continue to be referred to as the Sleeping

giants in terms of production. India, though, has started production, but vital issues of

water disposal and aquifer pollution need to be addressed more effectively. Talking about

Gas Hydrates, it has immense potential in terms of reserve. However, the technological

infancy in their economic extraction remains a cause of concern. Another added advantage

of shifting to this unconventional resources is that, they are least polluting. Methane is the

primary component in Shale Gas, CBM and Gas Hydrates. Methane produces nearly 40%

lesser CO2 in comparison to petrol per KJ of Energy produced. The current CO 2 content in

the atmosphere is about 392 ppm, which is far beyond the safety margin of 350 ppm.

Replacing petrol based vehicles with Natural gas based vehicles and coal ired electric

power plants with Natural gas ired power plants would help at least in maintaining the

current levels of CO2,if not reducing them.

Renewable resources like solar, wind, Geothermal, and Biomass are clean, sustainable and

have ininite potential. They seem to be the perfect alternative for conventional energy

resources in the long run. The investments in conventional hydrocarbons, say coal is a mere

13.67 billion dollars in a single year as compared to the hundreds of billions in renewable

resources. But still, renewables together contribute just over 16% to the global energy mix

while conventionals continues to dominate with an 81% share. Despite the huge

investments, renewables do not always become commercially competitive with coal, gas

and oil. A shift from Conventional oil and gas resources to Renewable Resources would be

possible only through a transition via the unconventional resources.