ID :
11425
Fri, 07/04/2008 - 17:26
Auther :
Shortlink :
http://m.oananews.org//node/11425
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India's oil demand not behind spike in crude prices: Deora
By Ammar Zaidi
Madrid, July 3 (PTI) India on Thursday trashed the
western commentary that rise in demand in countries like
itself and China was fuelling global oil prices, saying the
two countries account for less than one-eighth of the world's
consumption.
"With steadily declining energy intensity, both (China
and India) are registering rapid economic growth with less
than proportionate increase in oil demand," he said,
addressing the 19th World Petroleum Congress here.
Market analysts and political commentators, particularly
in the U.S., have in recent times blamed growth in fuel demand
in India and China for the record crude prices of over USD 143
but Deora said growth in consumption in India was lower than
many of the heavily subsidised nations.
"A small section of the oil analysts has been ascribing
the relentless rise in crude prices in recent months to the
spurt in demand for oil from India and China.
"I wish to take this opportunity to set the record
straight. While China and India account for over one-third of
the global population, their combined oil consumption is less
than one-eighth of the world's consumption," he said.
High rates of economic growth in the two countries are a
significant factor in ensuring stable and orderly growth of
the world economy as a whole in the rapidly globalising world.
"India's refining capacity today stands higher than our
oil demand which has a sobering effect on the product prices
by reducing the mismatch between product demand and supply.
Given these facts, we are of the firm view that attribution of
high crude prices to rising demand from India and China is
completely devoid of merit and misses the wood for the trees,"
Deora said.
Deora's address, on the theme 'Energizing India for
Sustainable Growth,' focused on challenges the nation faced on
the energy front with GDP growth rate of 9 to 10 percent.
"India's energy needs are growing as income levels and
population are both rising. Our main focus is to enhance
energy security for the country," he said.
The nation is putting in more money in finding new oil and
gas fields and enhancing production from existing ones,
acquiring energy assets abroad and developing alternate
sources of oil and gas.
It is also setting up strategic storage of crude oil at
Vishakapatnam and Mangalore in the country's southern region,
he said.
India is currently the world's fifth largest consumer of
energy and accounts for nearly 3.5 percent of world's energy
consumption.
"Our consumption of oil has been on the increase. Till the
mid of 80s, we had been self-sufficient to the extent of 70
percent in oil. Today we are importing around 75 percent of
our oil requirements," he said.
New Exploration Licensing Policy (NELP) has opened up 44
percent of Indian sedimentary basins. "In the next four years,
it is planned to increase coverage of 80 percent of total
Indian sedimentary basins. By 2015, entire area of Indian
sedimentary basins is likely to be under exploration."
In six international bid rounds under NELP, 162 new areas
have been awarded and 60 oil and gas discoveries have already
been made.
"With recent exploration and development efforts underway
in India, crude oil production is likely to increase by over
30 percent in the next five years. Similarly, by the year 2012
natural gas production will more than double from the present
level of about 90 million standard cubic metres per day," he
said.
In view of unfavourable demand supply balance of
hydrocarbons in the country, acquiring equity oil and gas
assets overseas is one of the important components of
enhancing energy security.
Indian companies now have presence in 22 countries. ONGC
Videsh Ltd. (OVL) has made an investment commitment of over
USD 7 billion and had an oil and gas production of 8.92
million tonnes in the year 2007-08.
India has doubled its refining capacity in the last 10
years. "Geographical location between East Asia and the Middle
East makes India ideally placed to emerge as an export hub for
the growing Asia Pacific market," Deora said.
Fuel exports have soared more than 10 times, from 2.4
million tons in 1997-98 to over 32 million tons in 2007-08,
with foreign exchange earnings of about USD 26 billion.
"Over the next four years, Indian downstream companies,
both public and private, are poised to set up new refineries
that will enhance capacity by an additional 90 million tons,
with a cumulative investment of USD 22 billion. We are
committed to increasing the product availability for the
domestic market and also meeting the requirements of the
export market."
Madrid, July 3 (PTI) India on Thursday trashed the
western commentary that rise in demand in countries like
itself and China was fuelling global oil prices, saying the
two countries account for less than one-eighth of the world's
consumption.
"With steadily declining energy intensity, both (China
and India) are registering rapid economic growth with less
than proportionate increase in oil demand," he said,
addressing the 19th World Petroleum Congress here.
Market analysts and political commentators, particularly
in the U.S., have in recent times blamed growth in fuel demand
in India and China for the record crude prices of over USD 143
but Deora said growth in consumption in India was lower than
many of the heavily subsidised nations.
"A small section of the oil analysts has been ascribing
the relentless rise in crude prices in recent months to the
spurt in demand for oil from India and China.
"I wish to take this opportunity to set the record
straight. While China and India account for over one-third of
the global population, their combined oil consumption is less
than one-eighth of the world's consumption," he said.
High rates of economic growth in the two countries are a
significant factor in ensuring stable and orderly growth of
the world economy as a whole in the rapidly globalising world.
"India's refining capacity today stands higher than our
oil demand which has a sobering effect on the product prices
by reducing the mismatch between product demand and supply.
Given these facts, we are of the firm view that attribution of
high crude prices to rising demand from India and China is
completely devoid of merit and misses the wood for the trees,"
Deora said.
Deora's address, on the theme 'Energizing India for
Sustainable Growth,' focused on challenges the nation faced on
the energy front with GDP growth rate of 9 to 10 percent.
"India's energy needs are growing as income levels and
population are both rising. Our main focus is to enhance
energy security for the country," he said.
The nation is putting in more money in finding new oil and
gas fields and enhancing production from existing ones,
acquiring energy assets abroad and developing alternate
sources of oil and gas.
It is also setting up strategic storage of crude oil at
Vishakapatnam and Mangalore in the country's southern region,
he said.
India is currently the world's fifth largest consumer of
energy and accounts for nearly 3.5 percent of world's energy
consumption.
"Our consumption of oil has been on the increase. Till the
mid of 80s, we had been self-sufficient to the extent of 70
percent in oil. Today we are importing around 75 percent of
our oil requirements," he said.
New Exploration Licensing Policy (NELP) has opened up 44
percent of Indian sedimentary basins. "In the next four years,
it is planned to increase coverage of 80 percent of total
Indian sedimentary basins. By 2015, entire area of Indian
sedimentary basins is likely to be under exploration."
In six international bid rounds under NELP, 162 new areas
have been awarded and 60 oil and gas discoveries have already
been made.
"With recent exploration and development efforts underway
in India, crude oil production is likely to increase by over
30 percent in the next five years. Similarly, by the year 2012
natural gas production will more than double from the present
level of about 90 million standard cubic metres per day," he
said.
In view of unfavourable demand supply balance of
hydrocarbons in the country, acquiring equity oil and gas
assets overseas is one of the important components of
enhancing energy security.
Indian companies now have presence in 22 countries. ONGC
Videsh Ltd. (OVL) has made an investment commitment of over
USD 7 billion and had an oil and gas production of 8.92
million tonnes in the year 2007-08.
India has doubled its refining capacity in the last 10
years. "Geographical location between East Asia and the Middle
East makes India ideally placed to emerge as an export hub for
the growing Asia Pacific market," Deora said.
Fuel exports have soared more than 10 times, from 2.4
million tons in 1997-98 to over 32 million tons in 2007-08,
with foreign exchange earnings of about USD 26 billion.
"Over the next four years, Indian downstream companies,
both public and private, are poised to set up new refineries
that will enhance capacity by an additional 90 million tons,
with a cumulative investment of USD 22 billion. We are
committed to increasing the product availability for the
domestic market and also meeting the requirements of the
export market."
