NEW DELHI – The Oil and Gas National Corporation (OGNC) of India has endedits shale exploration program after investing five years and millions ofdollars amidst the realization that there are not enough shale reserves.
The development comes as a setback for the oil & gas sector of the countrywhich was hoping for commercially-extractable shale reserves to bolsterfailing reserves of the natural fossil fuels.
OGNC had started the exploration program after getting inspired by theUnited States, where the shale revolution helped turn America into thelargest producer of oil and gas.
According to Indian media, OGNC officials had informed the government thatit was ending the exploration program ahead of schedule due to discouragingsigns. They also advised government officers to get the shale reservesreassessed by a competent international agency.
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An executive from OGNC is said to have told the media that the reservesfound in America are older, thus easier to extract. While those in Indiaare younger, which makes extraction difficult, adding clay to the littleyield that is coming out.
He also said that after assessing the data and drilling wells, it was notadvisable to continue to sink more money into the exploration.
