India bullish on undersea treasure hunt in gas, oil and minerals but the cost of exploration and recovery may make it impossible to access
Sudhir Chadda
Sep. 17, 2006

India bullish on undersea treasure hunt in gas, oil and minerals but the cost of exploration and recovery may make it impossible to access.

India may have found a fantastic reserve in mineral, oil and Gas under Arabaian Sea and Bay of Bengal if and only if the metal prices stay where they are and crude oil trades above $65 per barrel.

The biggest problem lies with the secretive ocean experiments that may eventually allow India to lay claim to vast undersea reserves of oil and minerals.

Though India is secretive of the data, souces close to the Government claim the data shows that there is enogh mineral, oil and gas but the cost of exploration and recovery will exceed the market price at the current levels.

However, based on this findings, india can be in great shape of the bull markets in metals, oil and gas continue.

India currently claims seabed territory up to the current limit of 200 nautical miles, or 370 km, offshore. According to UN guidelines, nations can claim land up to 350 nautical miles, about 648 km, offshore after proving the landmass geology matches that of the continental shelf.

India's extended continental shelf is estimated to hold 650 million tonnes of manganese nodules and metals, two billion barrels equivalent of oil and gas, and four billion barrels equivalent of gas hydrate.Currently India produces about 250 million barrels of oil every year. India's oil and gas will exhaust in thirty years. This provides India another ten to fifteen years. But then Gas and oil prices have to go up substantially for economic viability.

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India may have found a fantastic reserve in oil and Gas under Arabaian Sea and Bay of Bengal if and only if the metal prices stay where they are and crude oil trades above $65 per barrel.
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