ENERGY REPRESENTS THE BACKBONE OF THE INDIAN ECONOMY.
As India strengthens its position as the fastest growing economy oil consumption isexpected to accelerate. For a country that imports more than 75% of her oil appetite thisis a grim prospect exposing India to geo-political vulnerability.
What was disturbing for long was Indias lack of focus in the exploration of oiland gas reserves. Exploration represents the cornerstone for enhancing domesticproduction. Less than 50% of Indias sedimentary basins are explored. Of more than 3million square kilometres of the Indian sedimentary basins geo-scientific data on nearly48% of the basins is scarce or unavailable. For the last two decades no fresh assessmentto gauge hydrocarbon potential of its 26 basins has been conducted. Although the countrypossesses proven reserves of 206 billion barrels of oil only 67 billion barrels areonline.
I am happy to state that this is about to change.
The Government of India announced its decision to strengthen the countrys oilself-sufficiency with the objective to moderate the impact of oil price volatility on hereconomic progress. The Prime Minister set a goal of reducing Indias importdependence from 75%-plus of its energy requirement by 10% by 2022 and 50% by2030. In line with this ambitious goal Indias oil hunt is expected to accelerate.
In 2016 the Ministry of Petroleum and Natural Gas set in motion a large exercisetitled National Seismic Program through ONGC Ltd and OIL India Ltd to obtain data ofunappraised national spaces estimated at around 50% of Indias identified sedimentarybasins. This initiative was taken to cover all onshore areas with a preliminary 2D seismicsurvey.
To cover offshore areas another policy was implemented under the multi-clientnon-exclusive survey through which global companies can analyse and collect seismicdata at their cost which can then be marketed to potential investors.
This means unprecedented opportunities for Indias seismic survey sector.
For Alphageo this indicates superior prospects on account of a rich experience ofworking across most Indian terrains for more than two decades; this means a head-startbanking on a proven record of delivering projects on/ before schedule; this means moreprojects on account of vertically-integrated seismic services; this means the start ofanother phase in our existence.
These are exciting times for the Company as we hope to play a meaningful role inIndias efforts to discover additional oil and gas reserves.
Hidden wealth Since 1950 roughly 69 trillion cubic feet of proven and probablerecoverable gas reserves have been discovered in India.
Only 42 trillion cubic feet has been developed and is currently under production. Thatleaves 18 trillion cubic feet of reserves yet to be produced and 27 trillion cubic feet ofreserves yet to be developed.
According to an analysis of 12 basins across India approximately 64 trillion cubicfeet of risked recoverable resources are yet to be found. Thus India holds atleast 91 trillion cubic feet of recoverable gas reserves.
In addition to conventional gas reserves India also holds an estimated 63 trillioncubic feet of recoverable shale gas.