Investigating Dailekh’s Oil Reserves

According to recent reports from Dailekh, the last stage of crude oil prospecting has been completed in this highland district. The Dailekh drilling started in May and is currently moving at a rate of 15 to 20 meters per day. It is focused on a 45-ropani land area in Bhairabi Rural Municipality-1, Jaljale. The Department of Mines and Geology reports that 3,800 meters of drilling have been finished. Eighty field workers, including Chinese and Nepali specialists, will work together to drill another 200 meters, with the goal of reaching the 4,000-meter milestone by the middle of January. Globally, oil reserves are generally found between 1,500 and 3,500 meters below the surface.

Though the initial exploration project at Bahuni in the Morang area has not advanced, Nepal began to toy with the idea of exploration in the late 1980s. In 2016, the Dailekh exploration got underway. The original intention was to finish the exploration in two years, with the first phase to be finished in six months. However, the petroleum exploration effort in the following years was impacted by the COVID-19 epidemic that occurred in China in December 2019.

Samples have been gathered by the technical teams and sent to China and the Department of Mines and Geology for analysis. Within the following four months, the department anticipates having the final report on the samples that were collected. Regarding the potential for natural gas and petroleum reserves in and around the exploration sites, geologists and surveyors are upbeat. The initial stage of the seismic, geological, magnetotelluric, and geochemical sample surveys was finished by the Chinese technical team. Petrol product odors have been detected by Nepali technicians during recent drilling in the Shirathan, Nabhisthan, and Padukastan areas. After this last drilling, a thorough report will show the true condition.

Drilling is essential to figuring out whether petroleum products are present in this region and, if they are, whether it would be possible to extract them commercially. The ongoing investigation will verify whether gas or oil is present. Following sample testing, the final report will either offer proof or at the very least make some suggestions regarding the amount and viability of extraction.

After the facts are known, Nepal should carefully consider the possibilities of moving forward with its intentions to extract and refine crude oil. It might not always be very practical, even if supplies of gas and crude oil are discovered. For instance, the high extraction costs and volatile oil prices caused the United Kingdom and Canada to abandon their plans for extraction. Nepal has enormous potential for hydropower. In order to meet its energy needs, Nepal might be better off focusing only on using its water resources. Furthermore, the globe is aggressively moving toward clean energy, which will lessen the carbon impact that fossil fuels have contributed to.

The 12 petroleum-exporting nations that make decisions about the supply, demand, and pricing of fossil fuels must also be taken into consideration. New oil producers appear to have a difficult time keeping up with the dynamics of the Organization of Petroleum Exporting Countries’ (OPEC) economic and political ties. Furthermore, we cannot overlook the reality that Angola, Ecuador, Indonesia, and Qatar eventually had to leave OPEC. Although the discovery of crude oil in Dailekh is a noteworthy milestone, Nepal should carefully consider the advantages and difficulties of extracting oil in light of its dedication to sustainable development and clean energy.