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