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India to strengthen oil security: Vajpayee
Friday, 10 January 2003, 20:30 IST
NEW DELHI: India is mulling creation of a strategic oil buffer amid looming tension in the Middle East and prospects of reduced supplies, Prime Minister Atal Bihari Vajpayee said Friday.
"Security of supplies has become one of the important challenges that needs to be carefully addressed," he said in a keynote address at the Petrotech 2003 conference here.
"It is especially important for countries that are increasingly dependent on oil imports for their sustained economic growth."
Attended by 3,000 delegates from about 30 countries, India's largest petroleum conference and exhibition is focusing on global cooperation in hydrocarbon technology during the four-day event that ends Sunday.
With India dependent on imports for 70 percent of its hydrocarbon (oil and gas) needs, "we have embarked upon a detailed study to identify ways to minimise supply risks from external sources", said Vajpayee.
State-owned companies have been allowed to hedge in the international market for future supplies.
India is also "examining the feasibility of establishing strategic storage of crude oil and petroleum products in our country to create a buffer for meeting unforeseen disturbances in the supply chain and strengthening the country's oil security," said Vajpayee.
As fears mount that the U.S. might go to war against Iraq, India has directed oil companies to raise inventory levels to full storage capacities, official sources said.
Oil companies have been asked to store eight million tonnes extra of crude oil and petroleum products for a period of 30 days. Currently, the crude oil storage capacity with domestic refineries is 5.7 million tonnes, which can meet 19 days' demand.
With the petroleum sector increasingly opened to private sector competition, the government is taking steps to ensure healthy and sustained development of the hydrocarbon sector by putting in place a transparent and independent regulatory system.
"The Petroleum Regulatory Bill is before Parliament and we will strive to ensure its early passage," said Vajpayee.
Stressing the importance of adequate, affordable and sustainable supply of energy in determining the economic growth of any country, Vajpayee said: "The division of the world between developed and developing countries finds its reflection in the division between those who have a high per-capita usage of energy and those who either do not have sufficient energy or cannot harness it.
"Therefore, if we want to create a global environment where every nation gets equitable opportunities to grow, the energy resource gap between the developing and developed countries has to be bridged."
Although India's per capita energy consumption is still very low, Vajpayee said "at the targeted eight percent annual growth, it (energy consumption) will grow considerably in the coming years".
While trying to increase supplies through stepped up exploration in the country and abroad, India is looking at alternative fuels and inter-changeability of technology to ensure a mix of energy sources.
Stressing the need for a fresh approach, with emphasis on innovation, Vajpayee said: "The world is looking for a breakthrough in green technologies to address the environmental concerns arising from energy use.
"All these call for greater cooperation among scientists and engineers from various disciplines and countries."
Source: IANS
Source: IANS