Energy scarcity is among the many challenges confronting India and there is the prospect of it getting worse in the future. The phenomenon of shale energy could put a whole new spin on the issue, however. Shale is a fine-grained, classic sedimentary rock, composed of mud with a mix of flakes of clay, minerals and other tiny fragments, especially quartz and calcite. These rocks are extracted and processed to provide an alternate form of energy, which could, perhaps, be an answer to India’s energy shortages. But shale extraction can also bring major environmental concerns. The newly-elected government of Narendra Modi will face the delicate task of having to balance the two.

Comment

The reality of India’s current energy situation is precarious, to say the least. The world’s largest democracy will require increasing amounts of energy: demand is expected to rise by seven to eight per cent annually over the next decade. High levels of consumption of gas, oil and coal, necessitate a serious re-evaluation of the country’s energy mix. According to the Planning Commission of India, by 2016-17 the country will have reserves of approximately 6.7 million tonnes of oil and, by 2021-22, that will rise to 850 million tonnes. That total will only meet around 70 per cent of the expected demand, however. The remainder will have to be sourced through imports. Last year alone, coal imports rose by 135 million tonnes, putting a severe strain on the country’s exchequer.

Many have suggested that India embrace recent technological advances in the field of shale energy. Such suggestions, however, are controversial. Officials at the Ministry of Environment and Forest, for instance, have voiced their opposition, citing concerns over ecological risks. The Energy and Resources Institute of India has also opposed the use of shale resources on environmental grounds. Of the available fresh water in India, about 86 per cent is required for the all-important agricultural sector. With the International Energy Agency estimating that, during the hydraulic fracturing process, each shale gas well might need anything from a few thousand to 20,000 cubic metres of water^[1], there is the potential for shale gas extraction to have an adverse effect on Indian agriculture. Even without that problem, predictions indicate that, in the next 12 to 15 years, water consumption in India will go up by 50 per cent, while supplies will diminish by five to ten per cent.

Going down the shale gas path does present environmental threats, but not doing so also brings its own difficulties. It is therefore best to seek the middle ground, which is what the Indian Government has so far tried to do. The decision to only allow public sector organisations, like the Oil and Natural Gas Corporations and Oil India Limited, to be involved could enable a more environmentally cautious approach. Regardless of this, balance will be vital to avoid potentially detrimental consequences.