1. SHALEGAS AS THE GAMECHANGER GLOBALLY ?
The success of shale gas in US and to replicate its success worldwide is the talk of the town in
most of the energy market across different countries and India is one of the countries who can
be benefitted If it tend to explore shale gas reserves at an economical rates thus filling the
demand and supply and reducing burden on imported petroleum and diesel products. Recent
advancement in hydraulic fracturing and horizontal drilling have made shale gas operations
economically feasible. According to the US Energy Information Administration (EIA), it is
estimated that the top 33 countries, including the US, are estimated to have.
6,622 trillion cubic feet (tcf) of technically recoverable shale gas resources. In today’s scenario
the key player in shale gas market in United States America. The shale gas revolution has given
new directions to the US gas market creating higher competition in the gas sector and among
the gas consuming firms enhancing the employment opportunities in the gas sector.
Significant spring to thegovernment revenues:
shale gas industry is seeking as an important game changer even in terms of its contribution to
the government revenues in USA 2010, the industry is projected to have backed around
US$18.6 billion in taxes, including US$9.6 billion in federal taxes and US$8.8 billion in state
taxes.
The revolution of shale gas has transformed the demand supply format of gas imports in the
US. From being an importer of LNG it will actually be able to export gas in the world market in
coming few years. For instance it is somewhat unforeseen that EIA had estimated in its Annual
Energy Outlook 2006 the US LNG imports to range almost 334.5 mmscmd by 2030. However, in
the most recent 2012 outlook, the agency estimates that the country is expected to export 47.6
mmscmd of LNG by 2030.

2. WHY DOES INDIA NEED SHALEGAS ?
The need of shale gas is of varied importance to India, the exploration of the shale gas reserves
can reduce the dependency on the expensive conventional resources of energy which is leading
to the huge trade deficit of the country. Moreover development of shale gas industry would
foster boost in the economy opening up new horizons to energy security and energy access in
the country, but we also need to cater the environmental issues relating to the exploration of
shale gas.
Vast unmet gas demand to continue :
India gas requirement continues to be in deficit with the demand sky rocketing and supply not
even close to the gas requirement of Indian market .In financial year 2012 around 38% of the
gas demand was not met .leading to the reduction in the efficiency of the gas consuming
industries leading to lower output and negative impact on the economy . Shortage of the gas
supply leads to the surge of dependency on the LNG and there has been an underutilization of
the gas –consuming industries, especially in power and fertilizers sector. For illustration, the
average plant load factor (PLF) of gas-based power plants has deteriorated from 66% in FY11 to
59% in FY12.the decline is due to the dwindling production in Krishna Godavari basin – D6 block
which has worsen the supply of gas even more .

3. Trusting the present trends it is believed that the shortage of the gas supplies will continue to
aggravate in the next decade and the government deficit as a percentage of demand is likely to
fall from 38.2% in FY12 to 12.4% in FY22, the country’s need on imported gas is likely to
intensify considerably. The share of imported gas in India’s total gas supplies is likely to increase
from 22.5% in FY12 to 54.2% in FY22. Out of this, LNG is possibly to account for a major share,
with LNG imports increasing from 38.5 mmscmd in FY12 to 258 mmscmd in FY22.21. Although
government is trying to locate fresh sources for the imported LNG supply at the competitive
rates and also the increase in the demand of LNG by japan due shut down of its major nuclear
power generation plants would intensify the competition.
INFRASTUCTURE REQUIREMENT FOR SHALE GAS IN INDIA
The success story of shale gas can be applied in Indian scenario with the help of the strong
service and infrastructure capabilities along with the favorable policy framework incentivizing
the key Indian players in energy sector to invest in the shale gas .Also we need to look into the
environmental issues concerning the shale gas .
Supportiveregulatory framework: The shale gas industry in India is still at a infancy stage
therefore it is of prime importance that the policies support its development rather to hinder it.
A liberal fiscal regime has to be considered for its growth and expansion in India. Moreover cost
of production at the initial stages will be quite high due to lack of skilled labor force, relatively
unknown geographical terrain, water disposal cost and other expenses .gas gathering and
processing is supposed to be high although UA has managed to reduced its coast of operation
by 20% with the use of advanced techniques and equipment’s. India also needs to work on the
Prime Minister Narendre Modi saying of make in India and made in India in order to reduce the
further cost of importing even the machinery and tools for the shale gas production.
ADDRESS SOCIAL CONCERNS:
Access to land in not a major problem in US to abundant area left as open space but in a
country like India with 125 crore people as its population setting up a shale gas plant in a major
concern The physical footprint related to shale gas activities is considerably larger than that of
the exploitation of conventional oil and gas. The typical well pad needs abundant area for the
drilling rig equipment, wastewater ponds, storage and pipeline infrastructure and facilities for
staff and contractors.
Suggestion: To reduce the usage of land, companies must be stimulated to develop
superpads in areas where population compactness is high. This multi-well pad systemenables

4. the drilling of multiple wells from a single location. Although this may push operational costs, it
will reduce the geographical footprint of operations and help win public acceptance.
To promotenew Talent :
The Indian oil and gas companies are facing the dearth of the skilled labor force and quality of
talented people thus which could delay the projects and impact the production. According to
Ernst and young almost 50% of people employed in this sector have experience of more than
20 years and would take retired in almost 5 years and as per market expectations around 7% of
the employed will leave the industry thus significant efforts are required to make the industry
attractive to the new talent .
To promote shale gas research institutes:
India always surfaces the problem of adequate research data availability before initializing the
project.
For instance- US department of energy played an important role in the country shale gas
success; it opened a complete shale gas research institute in 1970s to first under the prospects
of shale gas in its country and effective methods to produce it.Similarly in 2010, China formed a
National Gas Shale Research Center to assist the development of the domestic shale industry.
Impact of increase in shale gas production in USA leads to the economic growth of the Indian
farmers. The reason fore of the flourishment is the “GAUR GUM” which is used for fracking in
production of the shale gas, as India is the largest producer of the GUAR, Its exports have risen
from risen from 121crore in 2003-2004 to 21,287crore in 2012-2013.