NATURAL GAS OF BANGLADESH: ISSUES ON EXPORT AND EXPLORATION

Abstract

This paper is aimed at analyzing the nature and consequences of involvement of foreign companies in the oil-gas exploration sector of Bangladesh. In this direction, it explores the energy scenario of the country and deals with two very sensitive current time issues like exploration activities in the Sundarbans and gas export. The paper suggests that such activity would endanger the ecology of the forest by proving disastrous to its delicate biodiversity. It also shows that the success rate in case of gas exploration is 3:1 for the whole of Bangladesh which is much higher than the world average of 10:1. Therefore, the term ‘risky venture’ does not go with the case of gas exploration. With respect to gas export the stand of the study is that, excess of production of gas over demand and consequent export of the same will ultimately lead to using up of the existing reserve within a period of only 15 to 20 years. As a result, in the future the country may be found importing gas at much higher prices than she has exported. Given this background, the paper questions the involvement of foreign companies in such activities not to speak of action in block 5. It is argued that no foreign intervention is necessary in the energy sector of the country as the national oil company alone is sufficient to meet up the demand for gas. What is needed is the formulation of an appropriate energy policy to ensure scientific exploration and economic use of this valuable natural resource.