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ONGC Ends Shale Exploration, Asks Govt to Re-assess India's Shale Potential

Professor of Financial Economics and Part-time Value Investor, Transfin.
Nov 26, 2019 12:37 PM 2 min read

ONGC ends shale exploration, asks govt to re-assess India's shale potential.



ONGC ends shale exploration, asks govt to re-assess India's shale potential.

Search and Don't Find: India's search for exploitable shale reserves was commissioned in 2013 when the Oil Ministry permitted Oil and Natural Gas Corp. (ONGC) and Oil India to explore shale in three phases of three years each. This search has now reached a dead end.


ONGC has decided to wind up its exploration programme ahead of schedule as the results hadn't been encouraging. It also told the government to reassess India's shale potential by a competent international agency.


India's shale aspirations were fueled by the shale revolution in the US, which enabled America to surpass Saudi Arabia to become the world's largest oil producer.


“The US has Permian shale while India has much younger, tertiary shale. The US shale rocks are brittle and so easier to hydro-frack while those in India are elastic with more clay content, resulting in little yield from fracking,” said an ONGC executive. “The general assessment after drilling wells and data analysis was that it may not be a productive idea to sink more capital into shale projects.” ET Oil & Gas


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