Petroleum Exploration Priority at Unpredictable Situation of Energy Market

Priority on Petroleum Exploration

Energy is the prime object for development of a country and directly or indirectly it plays an important role on revenue generation. So increase of energy price have great impact on socio economic development of country as because energy acts as catalyst behind origin. Energy price is now in unpredictable situation and price may run with big fluctuation range of US$70-US$90/Barrel until the end of 2023. At start of 2024 energy price may come down to stable range of around US$60-US$70/Barrel. 

In Bangladesh, the main energy sources are natural gas, imported crude oil and coal. Besides, minor energy sources are solar, wind and water generated energy. Natural gas is only domestic resources widely used for generation of electricity, used for fertilizer production, for vehicle as CNG and for industrial & household purpose. LPG is mainly imported natural gas used for vehicle & household purpose. It has now been set up LNG terminal and continues importing of natural gas to meet up increased local demand at different ground. Huge consumption of natural gas at different arena leads to dying out shortly the domestic reserve as there is no new discovery of gas filed at this moment and making a void between demand and production.  

Recent rising trend and volatile situation of International energy market reminding the necessity of local petroleum exploration. Energy price now affect all index of development, which lead to economic instability and ultimately thwart the actual growth. Bangladesh does not have giant gas field except Bibiyana but now a days it is also facing trouble due to overrated production. If there be any unwanted incident in Bibiyana may collapse the whole situation connected to energy.  

As of insufficient domestic production of natural gas and inability of LNG purchase for high price, government apply policy to limit use of gas by system of rationing supply can be short term solution but in the long run will fall into economic disaster and to get rid of such situation there will be no alternative of immediate petroleum exploration. Bangladesh is far behind on petroleum exploration and can not reach to expected level of sustainable development. Bangladesh won the arbitration on International sea territory and opens vast offshore area for oil & gas exploration, which is prospective for hydrocarbon.    

Oil price chart of last one year

So far, Conoco Phillips International Oil Company has done Seismic/ 3D survey in offshore block of Bangladesh and were interested to drill, somehow could not reach to a point of negotiation on post production agreement and finally left. As they were interested to drill in offshore means have bright prospect of hydrocarbon in that block. It will be good if have any scope to reiterate the negotiation procedure to reach at close successful negotiating point on starting of drilling in such block.     

Coal and coal bed methane could be alternative energy source of gas as Bangladesh has sufficient coal deposits. Coal bed methane normally extract from coal seam deposited at deeper depth like Jamalganj coal formation at Joypurhat and in this crisis moment can be alternate energy source.  

Exploration work is very expensive and risky operation; need proper planning and execution in safe way. In view of reaching target on petroleum exploration might consider well-reputed company with strong exploration background and financially solvent. Natural asset assessment related with visualization, extraction, measurable and consumable of  materials that may play important role in way of development and during needs. Keeping asset in such situation of unexplored, non-extractable and unusable beneath subsurface is not considerable as asset. It is now the time of booming petroleum exploration all over the world and Bangladesh might take into consideration of worldview on energy policy. Prepare & establish plan as well and move forward to remarkable success by huge exploration activities for oil & gas in offshore. No energy means no power, no sustainable development and keeps away from financial strength.