Unlocking deep sea energy potential needed

Gas is one of Bangladesh's most valuable natural resources, and the country has a great deal to be proud of in this regard. Due to its unique geological conditions, Bangladesh is rich in gas resources. Without this abundance of natural gas, our development efforts might have faltered, and progress could have been significantly slower. In fact, Bangladesh is one of the leading countries globally in terms of successful gas exploration. Our success is evident in the fact that out of every five wells drilled, three yield gas. This high success rate is likely because drilling began only after extensive testing confirmed the high probability of finding gas.

To date, Bangladesh has discovered 29 gas fields, although only 20 are currently in production. The daily extraction from these fields falls short of meeting the national demand by 110 crore cubic feet. Presently, 300 crore cubic feet of gas are produced each day, while the national demand stands at 410 crore cubic feet. This shortfall makes it challenging to meet the gas needs of households and industries. To address this issue, it is crucial to strengthen domestic gas exploration and extraction activities. If new gas fields are not discovered, the existing reserves are projected to meet the country’s needs for only the next 8 to 10 years. Therefore, exploring and developing new gas fields is essential to ensure a stable and sufficient supply for the future.

The deep sea offers promising new opportunities for expanding our energy resources. Unlike many landlocked countries, Bangladesh, with its maritime boundaries defined by the International Court of Justice, has access to potential underwater resources. This demarcation is a significant positive development for us, as it helps prevent conflicts over maritime territories and ensures compliance with international law. Extracting resources from disputed areas is prohibited, and the clear delineation of maritime boundaries with neighboring countries like India and Myanmar helps avoid legal conflicts.

India and Myanmar have already embarked on successful oil and gas exploration within their respective maritime zones. Their positive results suggest that similar success could be expected in Bangladesh's designated sea areas. Experts believe that the sea under Bangladesh's jurisdiction may hold substantial reserves of gas and possibly fuel oil. So it is hoped that a large amount of gas, and even petroleum, may be found in Bangladesh's maritime boundaries.

At one point, foreign companies claimed that Bangladesh was "floating on gas," but this assertion was later revealed to be exaggerated and misleading. The reality is that while Bangladesh does have significant gas resources, the current reserves are not as abundant as initially suggested. Without the discovery of new gas fields, the 29 existing fields are projected to meet the increasing demand for the next 8 to 10 years based on their current reserves. Therefore, it is crucial to initiate exploration activities promptly.

If planned exploration efforts are conducted across different regions of the country, it is highly likely that new gas fields will be found. Additionally, ongoing exploration and drilling in existing gas fields should continue. Drilling new wells in established fields tends to be less expensive than developing entirely new fields because the necessary infrastructure is already in place, reducing overall costs.

Failing to accelerate gas exploration and extraction could lead to a severe energy crisis in the future. In addition to onshore exploration, pursuing offshore gas and oil exploration should be a priority. With the maritime boundaries now clearly defined by the International Court of Justice, there are no legal barriers to searching for resources within our designated sea areas.

India and Myanmar have indeed taken significant steps to explore and extract oil and gas within their maritime boundaries, with both countries achieving positive results. Given that Myanmar has successfully discovered and is extracting gas from its waters, and with oil and gas also potentially present on either side of Bangladesh, there is every reason to believe that similar resources could be found within our own maritime boundaries.

It is imperative that Bangladesh begins serious exploration and extraction efforts in its designated sea areas. However, bureaucratic complications have delayed progress. Some factions are advocating for the import of LNG from abroad, driven by potential commissions, rather than pursuing domestic exploration. This approach could undermine long-term energy security and economic benefits. With the interim government currently in power, there is a unique opportunity to push forward with domestic oil and gas exploration. Political regimes often face bureaucratic hurdles, but addressing these issues promptly is crucial. Oil and gas exploration is a complex and long-term endeavor, and initiating these efforts now is essential for ensuring a stable energy future for Bangladesh.

To initiate offshore oil and gas exploration, collecting relevant data is essential. This process is both time-consuming and costly. A foreign company once proposed conducting a survey to assess the potential for oil and gas in our maritime areas, offering to share some of the data with us while retaining the rest. Unfortunately, this proposal was not approved. Had the survey been conducted, we would have already had valuable insights into our offshore resources.
Foreign companies or organizations interested in contracting for offshore oil and gas extraction typically require detailed information before committing. They need to understand the potential reserves to avoid undertaking operations under uncertain conditions. This information is crucial for determining the feasibility and value of an exploration agreement. The benefit of conducting such surveys is substantial. The data gathered can be sold or used to attract investment from companies interested in extracting oil and gas. Accurate data is vital for making informed decisions about which areas are most likely to yield resources. Companies are unlikely to enter into agreements based on speculative assumptions; they require concrete evidence to justify their investments. Thus, allowing foreign companies to conduct surveys and share the findings could significantly advance our understanding of offshore resources and facilitate future exploration and extraction efforts. The initial proposal from the foreign company to confirm oil and gas reserves was a positive step.

The failed initiative to conduct an offshore oil and gas survey was a missed opportunity, particularly since it required no financial investment from our side. Unfortunately, reluctance and the interests of certain groups, who favor importing LNG over domestic exploration, led to the collapse of this initiative. These groups appear to prioritize personal or group interests over the national benefit.

Given the current situation, we should consider leveraging international companies to gather essential data for offshore oil and gas resources. By involving these companies, we can obtain the necessary information without incurring initial costs. Once this data is collected, we can proceed with exploration and extraction in our maritime areas through production sharing contracts (PSCs). This approach involves sharing a portion of the production with the international companies in exchange for their expertise and investment. Additionally, foreign companies can be offered incentives to participate in offshore exploration. For example, they could be assured priority in leasing blocks when international tenders are issued, provided they successfully identify oil and gas reserves. This strategy would make efficient use of our demarcated sea boundaries and encourage investment in our offshore resources. Exploring and extracting oil and gas offshore could have significantly reduced our reliance on foreign energy imports and enhance our energy security.

As Bangladesh's population continues to grow and development activities accelerate, we are likely to face a severe energy crisis in the future. To address this challenge, we need to explore both conventional and unconventional energy sources. Renewable energy presents a viable option, as many countries around the world are successfully meeting a significant portion of their energy needs through renewable sources. However, Bangladesh faces specific challenges in renewable energy production. The country is extremely densely populated, and solar energy—one of the primary forms of renewable energy—requires substantial space for the installation of solar panels. Given the limited space available, large-scale solar projects are difficult to implement in such a densely populated environment. Solar energy is generally more feasible in less densely populated countries.

Despite these challenges, there are potential strategies to produce solar energy on a smaller scale. Additionally, efforts can be directed toward harnessing energy from wind and sea waves or currents. The southwestern part of Bangladesh has a vast sea area, and Cox's Bazar, the largest natural beach in the world, offers opportunities for wind energy generation. Coastal winds can be harnessed to produce electricity, and one of the key advantages of wind power is its sustainability; wind is a resource that will not run out. However, it is crucial to develop arrangements to meet our energy needs from domestic sources. As energy demand is expected to rise significantly in the future, relying on imports to meet fuel needs could pose financial challenges. Ensuring energy security through the development of domestic energy resources will be essential to avoid the difficulties of raising large amounts of money for fuel imports.

Dr. ASM Obaid Ullah: Adjunct Professor, Department of Geology, University of Dhaka
Transcription: MA Khaleque