Minerals Report - International Seabed Authority

Minerals Report - International Seabed Authority Minerals Report - International Seabed Authority

05.02.2013 Views

This is perhaps due to the perception that methane hydrate exploitation will be economically viable only when the price of conventional hydrocarbon and other fuels rises substantially. On the positive side, many of the identified hydrate deposits are located on continental slopes not far from major markets in industrialised countries 60 . Furthermore, countries with little or-no hydrocarbon resources have also noticed the presence of methane hydrates in abundance on their continental slopes. It is to be expected that the prospect of energy self reliance will catalyse some of these countries to initiate harvesting methane hydrates as soon as scientists and technologists come forward with dependable, safe and cost effective mechanisms to explore and exploit this resource. 8.2 Technological factors Most methane hydrate deposits occur in the deeper part of the continental slope and rise. Lack of suitable production technology was a major impediment in considering the feasibility of exploitation of this resource. However the past five years has witnessed a dramatic improvement in drilling technologies for oil and gas in deep water areas and even newer technologies are being developed. The oil exploration industry is now exploring extensively in deepwater regions (where hydrate deposits occur), and drilling capability to about 3500-4000 m (the base of the potential economic hydrate zone) is being built for conventional hydrocarbon drilling 60 . There has also been a distinct reduction in deepwater development costs. All these are positive factors for hydrate exploration and development. Even though located in deep waters, marine hydrate deposits are easily accessible to relatively shallow drill penetration from the seabed. Much of the engineering required to exploit these deposits can perhaps be achieved by suitably adopting proven technology currently in use in connection with exploitation of deep water oil and gas reserves. The present technological base appears to be adequate for exploration, exploitation and sub sea transport capabilities required for marine methane hydrate resources 60 . However as exploitation is not expected in the foreseeable future, the corporate sector is not willing to venture into this field. At present, whatever research is ongoing is mostly supported by governmental sources. The industry view 3 is that when hydrate development is required, challenges will be met, just as industry has mastered other difficult environments in energy resource development. INTERNATIONAL SEABED AUTHORITY 548

One interesting outcome of R & D in gas hydrates has been the identification of several possible uses of gas hydrates other than as fuel. Since the benefits from those uses are quite significant, therefore importance of gas hydrate is increasing. If continued research can find an increasing number of such alternate uses of gas hydrates, the economics of exploiting methane hydrates will improve and such activities will gain momentum. 8.3 International scenario of gas hydrate research Countries that have strong economic bases, or are witnessing high industrial growth rates, but have low energy resource potential, could potentially become energy independent, an event that would affect international affairs, foreign policy and other interrelations. The repercussions would extend to world trade, regional power equations, and foreign currency balance of existing major importers, when gas hydrates begin to be exploited. The realisation that such a situation could come about has lately generated some interest in the field of gas hydrate research in many countries recently. The first national United States Gas Hydrate Workshop in 1991 brought together government, industry, and academic research interests and proposed that research into hydrates should take place as a broad, integrated research programme. Significant scientific re- search subsequently by various US organisations culminated in the Presidential con- sent of the Methane Hydrate Research and Development Act of 1999. The legislation authorised $5 million in research funding3 for the Year 2000 and about $46 million until Year 2004. The government of Japan was first to establish a national hydrate research programme. An exploratory five-year plan for hydrate research was established in 1995 and in 1998 the Japan National Oil Corporation (JNOC) sponsored test drilling of known hydrate deposits in the McKenzie Delta of Canada in collaboration with the Geological Survey of Canada, the U. S. Geological Survey (partly funded by U.S. Department of Energy Technology Center, Morgantown, WV) and contracted university and research institutes. The Japan National Oil Corporation (JNOC) is conducting extensive research of a potential hydrate resource off Hokkaido Island and drilled test wells in two locations in 1999. Commercial production is targeted for 2010, barely 10 years away. It is estimated that recovery of only one tenth of Japan's estimated reserve INTERNATIONAL SEABED AUTHORITY 549

One interesting outcome of R & D in gas hydrates has been the<br />

identification of several possible uses of gas hydrates other than as fuel.<br />

Since the benefits from those uses are quite significant, therefore<br />

importance of gas hydrate is increasing. If continued research can find an<br />

increasing number of such alternate uses of gas hydrates, the economics of<br />

exploiting methane hydrates will improve and such activities will gain<br />

momentum.<br />

8.3 <strong>International</strong> scenario of gas hydrate research<br />

Countries that have strong economic bases, or are witnessing high<br />

industrial growth rates, but have low energy resource potential, could<br />

potentially become energy independent, an event that would affect<br />

international affairs, foreign policy and other interrelations. The<br />

repercussions would extend to world trade, regional power equations, and<br />

foreign currency balance of existing major importers, when gas hydrates<br />

begin to be exploited. The realisation that such a situation could come<br />

about has lately generated some interest in the field of gas hydrate<br />

research in many countries recently.<br />

The first national United States Gas Hydrate Workshop in 1991<br />

brought together government, industry, and academic research interests<br />

and proposed that research into hydrates should take place as a broad,<br />

integrated research programme. Significant scientific re- search<br />

subsequently by various US organisations culminated in the Presidential<br />

con- sent of the Methane Hydrate Research and Development Act of 1999.<br />

The legislation authorised $5 million in research funding3 for the Year<br />

2000 and about $46 million until Year 2004.<br />

The government of Japan was first to establish a national hydrate<br />

research programme. An exploratory five-year plan for hydrate research<br />

was established in 1995 and in 1998 the Japan National Oil Corporation<br />

(JNOC) sponsored test drilling of known hydrate deposits in the McKenzie<br />

Delta of Canada in collaboration with the Geological Survey of Canada,<br />

the U. S. Geological Survey (partly funded by U.S. Department of Energy<br />

Technology Center, Morgantown, WV) and contracted university and<br />

research institutes. The Japan National Oil Corporation (JNOC) is<br />

conducting extensive research of a potential hydrate resource off<br />

Hokkaido Island and drilled test wells in two locations in 1999.<br />

Commercial production is targeted for 2010, barely 10 years away. It is<br />

estimated that recovery of only one tenth of Japan's estimated reserve<br />

INTERNATIONAL SEABED AUTHORITY 549

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