Sri Lanka’s Underappreciated Asset: Offshore Natural Gas

Developing natural gas resources will help the country overcome its economic crisis, provide energy security, and lower carbon dioxide emissions.

Sri Lanka’s Underappreciated Asset: Offshore Natural

Developing natural gas resources will help the country overcome its economic crisis, provide energy security, and lower carbon dioxide emissions.

By Thomas L. Davis and Amila Sandaruwan Ratnayake

Summary: For now, Sri Lanka’s severe economic crisis seems to be in remission. Many challenges still confront the government and population, from a substantial national debt to question of whether it can afford imported energy…Sri Lanka has such a resource, although unknown to many. Off the Sri Lankan coast, there are discovered yet undeveloped natural gas fields – and the potential for additional discoveries. Developing the gas fields and more exploration could alleviate Sri Lanka’s debt, provide energy security for decades, and significantly lower its carbon dioxide emissions…Developing Sri Lanka’s discovered gas fields, returning exploration, and changing the energy sector from oil- and coal-based to natural gas are economically viable and desirable, assuming sustainable and responsible development. Key benefits include the alleviation of Sri Lanka’s debt; the creation of a secure, inexpensive, and reliable energy source for decades; and the reduction of its CO2 emissions to meet its international obligations in manner that does not economically deprive its population…Recent international events show that most nations with much larger CO2 emissions will place their energy security above climate change concerns if their economy and social well-being are threatened. Compelling arguments have been made that underinvestment in oil and gas worldwide will increase energy insecurity by constraining future supplies, increasing costs, and becoming a threat to global economic growth. Avoiding this will require far more than the present levels of investment despite claims that renewable energy will adequately supply the world’s needs during the energy transition. With sufficient investment, development, and exploration, Sri Lanka has the resources to avoid energy insecurity, while lowering its debt and CO2 emissions.

Full article: July 27, 2024, The Diplomat, Full Article: https://thediplomat.com/2024/07/sri-lankas-underappreciated-asset-offshore-lng/