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 fields has already peaked, most of the oil fields around the world are in declining
phase and no significant 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 CO2 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 fired electric
power plants with Natural gas fired 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 infinite 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.