CHALLENGES IN THE UPSTREAM HYDROCARBON SECTOR

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CHALLENGES IN THE UPSTREAM HYDROCARBON SECTOR
V. K. Sibal Director General
Directorate General of Hydrocarbons New Delhi
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PRESENTATION OUTLINE

• Current Scenario
• Specifics of EP Industry
• Challenges
• Way forward - Policy Reforms
• Conclusions

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CURRENT SCENARIO
RESOURCE BASE
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CURRENT SCENARIO
EXPLORATION STATUS
Initiated

• Only 19 of the total 3.14 million sq. km. has
  been extensively explored
• lt 30 of total prognosticated resources
  established
• Reserves estimated in only 15 out of 26 basins
• Very low drilling density

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SPECIFICS OF EP UPSTREAM

• Knowledge Technology Intensive
• Cost sensitive
• Inexact Science

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CHALLENGES ..

• Stagnant oil and gas production
• Increasing Domestic Demand
• Rapidly Growing Economy
• Declining self sufficiency
• Requiring intensified exploratory efforts

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OIL GAS DEMAND, PRODUCTION IMPORT TRENDS
To Bridge the gap is the greatest challenge
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KEY ISSUES

• Technology / Knowledge Gap
• Theoretical RD
• Scattered Geoscientific Information
• Energy Policies - Misplaced

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KNOWLEDGE GAP

• Academia
• Outdated curriculum in Academia
• No coordination between Industry, Academia and
  Policy makers
• Divergent Objectives
• Practically no contribution to Industry
• RD Irrelevant to Market

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KNOWLEDGE GAP

• Industry
• Applied RD ( Relevant to Market ) - Non existent
• Largely dependant on borrowed Technology
  Knowledge
• Misplaced Strategies
• Poor interaction with Academia
• Stagnation of knowledge technology in the
  Service sector

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Theoretical RD

• RD not Business centric
• Emphasis on inputs from Academia
• RD not of International Standard

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SCATTERED GEOSCIENTIFIC INFORMATION

• Insufficient information on availability of data
• Lack of understanding for release of data by
  various agencies
• Lack of Centralized National Data Repository for
  the entire energy sector
• Data confidentiality issue prevalent of old
  myth

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INTEGRATED ENERGY APPROACH

• Integration of Energy related Ministries
• Formation of Apex body to regulate Energy Sector
• Free Data / Knowledge Exchange
• Mechanism for effective coordination

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WAY FORWARD
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POLICY REFORMS

• National Level

Energy
Apex body
Conventional
Non - Conventional
Scientific, Technical Research Bodies
Free data/Knowledge flow
Effective coordination
Dynamic Forecasting
Centralized NDR
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POLICY REFORMS

• National Level
• Policy on Geoscientific Information
• National Data Repository
• Sharing of data in public domain
• Regulation regarding acquisition, archival
  distribution of data
• Policy for EP Service Sector

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POLICY REFORMS

• Company Level
• Restructuring the Boards distancing CEO CFO
  from the Board.
• Proper representation of Core competencies within
  the Board
• NOCs to focus on areas of their core competency.
• HRD to be aligned with the Company Objective
• Curriculum policy for Academia in consultation
  with the Industry
• RD to be Market relevant

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CONCLUSIONS

• Policy on curriculum for School / College
  University level based on interaction with
  Industry
• Policy on Data availability for Academia,
  Industry Public to boost RD
• Synergetic approach through administrative
  reforms
• Policies for incentive based EP Services
  Infrastructure
• Restructuring of PSUs for effective governance

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CONCLUSIONS
POINTS TO PONDER

• Forecasting
• Energy Portfolio
• Related Infrastructure
• Integrated Approach
• Mass storage systems
• Evacuation
• Parallel actions for technology changes w.r.t.
  changing fuels

Thank You