RxPG News XML Feed for RxPG News   Add RxPG News Headlines to My Yahoo!  

Medical Research Health Special Topics World
 
  Home
 
 Careers 
 Dental
 Medical
 Nursing
 
 Latest Research 
 Aging
 Anaethesia
 Biochemistry
 Biotechnology
 Cancer
 Cardiology
 Clinical Trials
 Cytology
 Dental
 Dermatology
 Embryology
 Endocrinology
 ENT
 Environment
 Gastroenterology
 Genetics
 Gynaecology
 Haematology
 Immunology
 Infectious Diseases
 Metabolism
 Microbiology
 Musculoskeletal
 Nephrology
 Neurosciences
 Obstetrics
 Ophthalmology
 Orthopedics
 Paediatrics
 Pathology
 Pharmacology
 Physiology
 Psychiatry
 Public Health
 Radiology
 Rheumatology
 Surgery
 Urology
 Alternative Medicine
 Medicine
 Epidemiology
 Sports Medicine
 Toxicology
 
 Medical News 
 Awards & Prizes
 Epidemics
 Health
 Healthcare
 Launch
 Opinion
 Professionals
 
 Special Topics 
 Ethics
 Euthanasia
 Evolution
 Feature
 Odd Medical News
 Climate
  India Business
  India Culture
  India Diaspora
  India Education
  India Entertainment
  India Features
  India Lifestyle
  India Politics
  India Sci-Tech
  India Sports
  India Travel
 
 DocIndia 
 Reservation Issue
 Overseas Indian Doctor

Last Updated: May 20, 2007 - 10:48:48 AM
News Report
India Business Channel

subscribe to India Business newsletter
India Business

   EMAIL   |   PRINT
Geopolitics and oil supply disruption: Is India prepared?
May 8, 2007 - 9:00:09 AM
It is important that LPG and kerosene is made available in different parts of India at times of oil supply disruption. It is possible to put up with the shortage of petrol and diesel for some time, with some inconvenience. But it is impossible to do without LPG or kerosene. We may not take out our cars, and take to biking or walking, instead, but can we go without food? If we fail in proper management of shortages, we may well have to face outbreak of kerosene riots in the country. We need a world-class information system that will give inventory statistics on petroleum products. It is time the government put in place a strategic oil- planning group to draw up a contingency plan to meet the possible shortages of LPG and kerosene in India.

Article options
 Email to a Friend
 Printer friendly version
 India Business channel RSS
 More India Business news
[RxPG] What do we do when crude price touches $250 a barrel? Even with high foreign exchange reserves, India will have a very hard time to absorb such a high price. We could dismiss this as Doom's Day scare mongering at our peril. But then a study done last year by one of the international banks projects such three-figure oil price-line as bottom line case scenario, given the volatile potential for oil supply situation; given the potential for Iran-US confrontation getting a lot worse before it gets better.

During the last week of March, the international crude market became jittery in view of fears of possible attack on Iran either by the US or Israel. Within hours of such informed speculation gaining currency crude price shot up by as much as $5 per barrel. There were concerns that Iranian export of 2.3 million barrels per day itself may be lost, which is more than the spare capacity available now.

There were speculations of the Strait of Hormuz being closed by Iran or made inoperable. This would shut down the export of Middle East crude supply of about 15.5 million bd. That accounts for two-fifths of the world's crude oil traded by tanker, and about one-fifth of total oil production according to Energy Information Agency of the USA.

Crude price is a gamble in the combative global politics over the Middle-East issue. Point is whether we in India have it in us to cope with shocks and disruption on the oil supply front. Does India have a credible energy security strategy?

Planning Commission in their Integrated Energy Policy document released last year defined the imperatives of energy security. It said, 'We are energy secure when we can supply lifeline energy to all our citizens irrespective of their ability to pay for it as well as meet their effective demand for safe and convenient energy to satisfy their various needs at competitive prices, at all times and with a prescribed confidence level considering shocks and disruptions that can be reasonably expected.' This is the best definition I have come across. But our political class has done very little to implement it.

There are two aspects of energy security - 1) long term measures such as reducing demand for energy and increasing strategic supplies in all possible ways; and 2) oil reserves to deal with sudden scarcity whenever it occurs. My focus here is on the second aspect, our preparedness to be able maintain energy supply during times of shocks and disruptions.

More than the price shock there could be a devastating possibility of non-availability of fuel to run our industries; to move goods and people and, to keep the kitchen stove burning in the multitude of middle class, and more of our urban poor households that are totally dependent on LPG or kerosene...

The last three major oil shocks affected India in terms of sudden price increases. Impact on petroleum supplies was minimal. But a shutdown of the Strait of Hormuz or any such disastrous development would definitely hurt where it hits the common man. India has been planning, for many years, to have strategic petroleum reserves - like most of the developed countries. They hold adequate crude stocks to cover their domestic requirements for 90 days or more.

Our experts who drafted Integrated Energy Policy Report reckon there is 'no proven justification' to maintain such costly strategic storage level. Their recommendation was to hold stocks to last for no more than 30 days. In my view such a policy is based on wrong premise and should be revisited. It is true that unlike major economies like the US and EU, which may be able to influence the pricing through the use of SPR, India may not be in a position to have an impact.

Tragedy is, even a modest goal of holding 30-day stocks is far from being realised. Only very recently a decision has been taken to construct SPR of 5 tonnes in Mangalore and Visakhapatnam and, that too, by a distant 2015. The total cost estimate is Rs.12,500 crores -. The planned SPR represents just 15 days of the nation's fuel requirements.

It is important that LPG and kerosene is made available in different parts of India at times of oil supply disruption. It is possible to put up with the shortage of petrol and diesel for some time, with some inconvenience. But it is impossible to do without LPG or kerosene. We may not take out our cars, and take to biking or walking, instead, but can we go without food? If we fail in proper management of shortages, we may well have to face outbreak of kerosene riots in the country. We need a world-class information system that will give inventory statistics on petroleum products. It is time the government put in place a strategic oil- planning group to draw up a contingency plan to meet the possible shortages of LPG and kerosene in India.

-





Related India Business News
11 Indian firms to set up manufacturing units in China
Draft bill to amend Companies Act under preparation
Spanish firm prefers India to China for joint venture
Only foreign vacations please: Outbound travel booms
New twist in Gurgaon SEZ protest
Indian Inc leaders to head for Cannes
SBI Mutual Fund to tap infrastructure opportunities
Probe ordered on tax breaks of Tendulkar, Gavaskar
BIG 92.7 FM to promote 'Jhoom Baraabar' songs
Sun Micro, Tech Mahindra join hands for IPTV services

Subscribe to India Business Newsletter
E-mail Address:

 Feedback
For any corrections of factual information, to contact the editors or to send any medical news or health news press releases, use feedback form

Top of Page

 
© All rights reserved 2004 onwards by RxPG Medical Solutions Private Limited
Contact Us