India’s energy needs are running high. We are one of the fastest developing economies in the world and we need more and more energy to sustain our growth.
India currently imports 70% of its 105 million ton crude oil requirement every year..
Currently has a reserve of 7.5 million ton which can serve the country’s needs for about 20 days.. Today the cabinet also approved building of 5 million ton strategic oil reserves which can supply oil during short term disruptions in supply.. by the way, India is the first country in south asia to build oil reserves for strategic purposes..
Why do we need oil reserves?? well, bcos we import most of our crude oil (over 70%) and are becoming increasingly dependent on our suppliers.. so reserves are a short term plan to get around disruption in supplies
Do we have any long term plan? Yes, the previous NDA government has initiated a gas pipeline from Iran via pakistan to India. This would provide a good supply for our enerrgy requirements.. but is it strategically a reliable option??
Look at what Russia did to Ukraine. Recently a Putin rival came to power in Ukraine and Russia increased the prices of gas it supplied to ukraine four times!! When Ukraine didnt agree it cut off the supply.. this also affected European countries which depended on gas pressure from Russian side for their supplies..
Cant it happen to India if we go ahead with this pipeline?? Cant pakistan stop gas supply to Indian at will whenever it wants.. even if the pakistani government did not do so, cant the terrorist outfits in pak do that? and as usual pakistan will say that they are not under the government control
what if a tension comes between Iran and Pakistan?? or what if pakistan starts stealing gas from this pipeline?? these are all practical issues that need to be addressed.. India is becoming increasingly dependent on gulf for its energy needs
the other day India voted against Iran on the nuclear issue.. can it continue to do that once the gas pipeline becomes operative??
Americans are targetting Iran as one of the rogue states.. What if America collides with Iran and that affects our gas supply??
To summarize India needs to carefully chalk out its long term energy supplies with minimum dependencies on external factors