Reliance gets $7.2 billion mostly for KG gas.What did Andhra get?

BP said on Monday it will pay Reliance Industries $7.2 billion and performance payments of up to $1.8 billion if the tie-up leads to the development of commercial discoveries. 

The company's key production asset is its KG D6 block in the Krishna-Godavari basin off India's east coast. Its output is around 52-53 million cubic metres of gas a day and it could reach peak capacity of 80 million cubic metres in 2013. 

Read more: BP and Reliance in $7.2bn oil and gas alliance - The Times of India http://timesofindia.indiatimes.com/business/india-business/BP-and-Reliance-in-72bn-oil-and-gas-alliance/articleshow/7540225.cms#ixzz1Ey6SlRqM


Discovery of gas transformed economies of several nations - what did Andhra get? 

Did A.P miss an opportunity to build wealth and enterprise with KG gas?

Oil and Natural gas discoveries are the real game changers- they dramatically transformed economies of several countries. Few examples:
The discovery of large quantities of oil and gas in the North Sea has been one of the most dramatic events in the post-war history of the UK. The direct and indirect effects have permeated the whole country. The balance of payments and the public finances have benefited greatly since the 1970s. Locally the economy of the whole of the North-East of Scotland has been transformed as a result of the coming of oil. For many years prior to its discovery the regional population had been falling from 468,000 in 1951 to 455,000 in 1961, 450,000 in 1966, and 436,000 in 1971. Total employment also fell through the 1950s and 1960s.

The first commercial oil field dates to 1969 when what is now the Arbroath field was discovered. It was the discovery of the giant Forties field the following year that confirmed the exploration potential of the waters off Scotland and led to a rapid succession of further substantial discoveries in the first half of the 1970s.

The North-East economy shared in this boom. The population trend was dramatically reversed, with Grampian region exhibiting a growth from 436,000 in 1971 to 480,000 in 1981, and 533,000 in 1995. Unemployment rates became extremely low and average male earnings rose from 85% of the UK national in 1972 to well over 100% by 1978. 

Many of the traditional industries were not inherently very profitable and their ability to withstand increased costs was very limited. The textiles, papermaking, traditional engineering, fishing and fish processing industries all experienced declines in the period since the 1970s. The continued growth of the oil-related sector countered the loss of employment elsewhere. 

Israel us the last to discover vast reservoirs of gas and what is it planning to do? They decided to set up gas wealth fund , invest it wisely globally and use the returns to support education and defense.

Andhra Pradesh seems to have showed little imagination is utilising Krishna Godavari gas for economic development of Andhra. Radia tapes show that Rajeskar Reddy tried invain. Is all lost on economic gains to the region from discovery of KG gas?