Will Gas Push Energy Prices Down?
Gas has become lot cheaper across the world after the fracking process evolved for shale gas recovery. Though well head shale gas could turn out to be cheaper, transportation across large distances could make it costly.
However, cheap shale gas ensured that petroleum prices crash across the world and India stands to benefit out of it.
Shale gas in India struck a discord, with environmentalists vehemently opposing the idea of recovering shale gas by fracking. People in the know, understand that fracking is nothing but pressured water flowing into the gaps between the rocks, forcing the gas in between the rocks, to come out of the well.
The only environmental issue might be the amount of water used. But that water is also recoverable and the same could be taken out of a well.
Once more the Government proved that it can mishandle every new technology so that people on the opposite side of the fence can misuse the situation to their politico-economic advantage.
With increased natural gas usage in the US, they have now come up with improved environmental norms on methane emission. The US Environmental Protection Agency, announced the cutting of methane emissions between 40 and 45% before 2025.
Gas prices in India came down by 7.7% in April to USD 4.66 per million BTU. Subsequently Indian prices have not reflected the world market scenario. The world prices have been on a free fall all along and has reached a low of USD 2.69 per MBTU.
While we look to reducing gas prices to bring down our overall energy cost, we should also grow conscious of the fact that Gas emits methane which is detrimental to atmosphere. Emission norms need to be evolved within the country to ensure that we leave this country well groomed for our children.