Shale oil revolution and Bangladesh

The world is undergoing a new revolution, the shale oil and gas revolution. The United States has already made a breakthrough. But in shale oil technology Canada and Norway are not far behind. During Canadian Governor General's recent visit to China the two governments signed an agreement for oil exploration cooperation. The Canadian Governor General also visited India. He was given a warm reception in the President House in Delhi.

It is reported he sought shale oil cooperation in both China and India, the world's largest energy markets. China has the world's largest shale oil reserve along with Russia and Mongolia. But in the Western hemisphere both United States and Canada have large stocks. It is a geological phenomenon hardly scientifically defined like formation of rare earth.

Shale oil is found in solid form in rocks and sands whereas normal hydrocarbon is in liquid and gas form. The shale oil has to be transformed to oil and gas by applying extra energy on the solid form. As such it was un-economic to explore them. But high oil prices have made this a viable option. Shale gas is being exported to USA from Canada, despite environmentalists' protests. Now Canada is opening up the road to China and India. Shale oil and gas would be brought to the west Canadian ports and shipped. But Bangladesh is closer to big markets in Asia - India, China and Japan.

What we need is vision. Norway compared to China, Russia, Canada and USA is a small country but it is far advanced in shale oil technology. Qatar with its imported know-how is not far behind.

It is said, Norway has made the greatest advance in shale gas exploration technology. Statol, the state-owned Norwegian company, has made a great headway. An executive of Norwegian Statol had told me recently that not only big countries with big resources but small countries (geographically) like Bangladesh could make great headway. As shale oil is in solid form, in a small area clearly identified could produce an enormous amount of shale gas and oil.

In Bangladesh shale gas and oil could be extracted from sand down the water layer of the sea. Classified satellite survey has shown that there are such fields around Kutubdia layer. There is another around Barguna layer. The governments since British and Pakistani rules have preserved any discussion about minerals as a top state secret. Geological information is strictly restricted in the national press because of the lack of co-operation between the press and geo-logical specialists though we know there are highly qualified geologists and nuclear scientists in our country. The nuclear sand in Cox' Bazar was discovered by our own scientists but it has not yet been explored by the restriction of an external power. Similarly though we know there is oil down our soil, no oil well has been operative in half a century. Now only gas is being explored. The Soviet Union played an important role in Ghorasal project heralding our energy autarky. Gas is now being used as our primary source of energy. Exploitation of shale gas could lead us to the global export market.

Many think we are happy to be treated as underdogs. Fortunately a lot of national companies and entrepreneurs have recently emerged. Our globe conquering garments industry has been created by our own entrepreneurs. How many of us know of Waseq Molla who had pioneered his garment industry to challenge the supremacy of Manchester a century ago. Who knows about hosiery industry in Pabna and Narayanganj? Who remembers Edruc pharmaceuticals of Pabna? Similar entrepreneurs are needed in our mineral and oil sector. The foreign companies cannot do it for us.

I was talking to a consultant for GETCO. Their company have many positive ideas and many foreign technological contacts. But a private company cannot do everything without government involvement.

What we feel Bangladesh should not be left behind in shale gas revolution.

I was told that shale gas is not only under sea bed, but they can be found in Madhupur highlands in Tangail and Barind high lands in Dinajpur, Rangpur and Bogra triangle and of course in Chittagong Hill Tracts.

But our economic system is such that to explore and extract is a long way. We are fast to call for tenders and then take a time consuming process to evaluate them and the cost efficiency. In such a process we have not yet dug a normal oil well and how long to shale gas and oil exploration?

But can we be left behind in the global shale gas and oil exploration? The world has made formidable advance in renewable energy. But we are left far behind! except some preliminary advance in the solar energy. But Bangladesh is in dire energy need. We can harness the waves in the sea and mighty wind power.

To bring the prosperity of our masses we should not miss the shale oil revolution.

But many would disagree. In our overpopulated land, we cannot use our agricultural land for mineral exploration.

With all the big bangs the shale oil revolution in US is turning a catastrophic failure. The Shell company lost 25 billon dollars in its operations in New Mexico and Texas. BHP Bilton lost another 20 billion dollars. It is not a joke. Shale operation has been successful only in thinly populated North and South Dakota, a tiny part of US territory.

It needs not only cheap energy but also cheap manpower. USA lacks it. But poorer countries with cheap manpower can augment it, many would argue.

From that point of view we can study the possibilities presented by shale revolution.