Approval on Policy of Exploration of Unconventional Hydrocarbons

Question-Recently, the union cabinet chaired by P. M. Narendra Modi has approved the policy to permit exploration and exploitation of –
(a) Unconventional Hydrocarbons
(b) Conventional Hydrocarbons
(c) Coal Bed Methane only
(d) None of the above
Answer-(a)
Related facts-

  • The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the policy to permit exploration and exploitation of unconventional hydrocarbons such as Shale oil/gas, Coal Bed Methane (CBM) etc.
  • It will be carried out under the existing Production Sharing Contracts (PSCs), CBM contracts and Nomination fields to encourage the existing Contractors in the licensed/leased area to unlock the potential of unconventional hydrocarbons in the existing acreages.
  • As per existing contractual regime of PSCs, existing Contractors are not allowed to explore and exploit CBM or other unconventional hydrocarbons in already allotted licensed/leased area. Similarly, CBM Contractors are not allowed to exploit any other hydrocarbon except CBM.
    Benefits of this policy framework-
  • This policy will enable the yield of prospective hydrocarbon reserves in the existing Contract Areas which otherwise would remain unexplored and unexploited.
  • Due to this, there is a chance of discoveries of new hydrocarbons, new investments in exploration and production activities and thus increase in domestic production.
  • Induction of new, innovative and cutting-edge technology to exploit unconventional hydrocarbons.
  • The policy encourages new investment in this field which leads to employment generationand thus benefitting various section of society.
    Coal Bed Methane is an unconventional form of natural gas found naturally in coal deposits.
    Shale gas is a natural gas that is found trapped within shale formation.

References-
http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1541081
https://www.dur.ac.uk/unconventionals/about/