Apropos Business Recorder's editorial 'Energy priorities', it is a matter of grave concern that at the current gas consumption rate our known gas reserves can last for only 18 years. But the question whether the government, which is said to be trying to induce E&P companies to exploit shale gas and also attract investment to explore the offshore basin, will really be able to attract the required FDI has no clear answer as yet.
There are legitimate doubts about the success of pilot projects on shale gas, leading to the required formulation of shale gas policy in the near future. The government's optimism, therefore, appears to be misplaced because it believes that attractive fiscal packages offered by it would foster confidence in the energy sector, attracting substantial investment. The energy sector faces grim prospects as far as inflows of FDI are concerned. The government, therefore, is required to accept this stark reality without any further loss of time. Hence, the need for a realistic energy policy that addresses shortages, which are having a deleterious effect on the real economy.
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