Production of gas in Gujarat has declined to its lowest level in the last 15 years. In 2008-09, the onshore gas production in the state was 2605 million metric standard cubic metres (mmscm), which is the lowest since 1995-96.
The decline in gas production has been continuous since 2005-06. The chances of production in 2009-10 crossing 2878 mmscm - the volume of gas produced in the state in 1995-96 - are minimal. Gujarat is currently the second largest onshore gas producer in the country, with Assam at the number one position.
Some other states, however, have been able to increase gas production continuously. In 2008-09, Tamil Nadu almost doubled its gas production to 1243 mmscm, from 678 mmscm in 2004-05. Similarly, Assam and Tripura have also increased onshore gas production. Incidentally, onshore production refers to output following exploration on land while offshore production refers to production after exploration for gas in the sea.
Experts say that oil wells in Gujarat have become old and exhausted. It’s worth mentioning that the first well in Gujarat was drilled in 1958 in Cambay by the Oil and Natural Gas Commission (ONGC). “Gujarat does not have wells that produce only gas,” said Anil Johari, executive director-asset manager, ONGC, Ahmedabad. “The state’s wells have gas mixed with oil. In such wells, oil and gas production tends to decline over time because of fall in pressure.”
Johari further said that, in contrast, the southern states and Tripura have wells which produce only gas. “Most of the wells in Gujarat have been functioning for 30-35 years,” he said. “Hence, there has been a decline of 8-10% in production from each well. We are applying new technology to try and arrest the decline.”
But aging wells are not the sole problem. New discoveries are also not happening. “There has been no major new discovery of oil and gas in Gujarat in the recent past,” a Mumbai-based oil and gas analyst said. “This is another reason why gas production in the state has not increased.”
