Barriers To Entry In This Market

Some typical barriers are:

• High capital and operational costs
• High marketing costs
• Consumer acceptance
• Training and skills
• Unique technology

The way forward to overcome the barriers

• Create a business model based on production sharing wherein part equity is picked up by the well owners, integrators (our venture), technology provider, the financier and marginally extended to vendor (such as logging van operator). This will effectively shift the capex burdens on the relevant contributor.
• High marketing costs can be controlled by establishing partnerships with well owners
• For tiding over the issue of consumer acceptance, a demonstration facility or free of cost "FOC" exercise shall establish the credentials.
• There is a plentiful availability of work force in retired geologists, reservoir engineers and "hands on" logging operators. This is a largely untapped area which can be available for integration of the production system.
• The uniqueness of the technology is indeed a barrier because not much empirical data is available around the world. Besides each geological formation is unique in nature where operational solutions shall be developed keeping in mind the type of source rocks, basins etc. A demonstration will put to rest many of the questions raised in this regard.