As India moves towards a Gas based economy, there will be many business opportunities for LNG business, if prices do not go too high i.e. beyond 6-7 USD / mmbtu. We hope that Government of India starts executing at least one transnational gas pipeline Project from Iran (or Turkmenistan) as India is short of pipeline gas, considering that India’s gas production remains too low. India is lucky to be surrounded by vast quantities of Oil & Gas in its neighbourhood which can be shipped to India in a matter of few days. India is surrounded by over 2000 TCF of gas in its neighbourhood in Iran / Turkmenistan / Qatar, which can even be piped to India, if Govt. gives the necessary diplomatic and political support considering that Iran Sanctions have been lifted. We believe Oil prices remain range bound 55-65 USD / BBL considering the stiff competition now from US Shale Oil Gas, as well as from renewables (Wind and Solar). Fortunately, globally Oil Cos. are now fit after reducing costs for many years and even make money at Oil price of 50 USD per bbl. So long as India’s economic growth continues with healthy export levels, we should not have problems to meet our Oil & Gas requirements from overseas.
On the other hand, India really needs to greatly intensify its oil exploration and actual drilling efforts, by reducing the time for permissions. We must drill a very large number of wells in 2018.Only then would we know whether India is rich in Oil & Gas, as all experts believe. 2018 should also see more Indian investments in Middle East in Oil & Gas assets and in Africa too.
– Subodh Jain, Chairman, SAGE