The Big Picture - Strategic Oil Reserves & Energy Security

India, the world’s third largest crude oil importer has an existing storage capacity of 5.3 million tonnes at Visakhapatnam, Mangaluru and Paadoor, built at an investment of $600 million in the first phase. This is operational and can support 9.5 days of net imports. In addition, the government has approved the construction of an additional 6.5 million tonnes of strategic crude oil reserves. Strategic crude oil reserves, which are typically state-funded and meant to tackle emergency situations, allow a country to tide over short-term supply disruptions. International Energy Agency members maintain emergency oil reserves equivalent to at least 90 days of net imports. India will have oil reserves equivalent to at least 87 days of net imports, once the $1.6 billion second phase of Indian Strategic Petroleum Reserves, which aims to add 12 days of crude storage, is operational. These facilities together will help support 22 days of India’s crude oil requirements. Indian refiners also maintain 65 days of crude storage, taking the total tally to 87 days. On this edition of the big picture we will analyse India's Strategic Oil Reserves and Energy Security.

Guests -
1- Tarun Kapoor, Secretary, Ministry of Petroleum & Natural Gas
2- Narendra Taneja, Energy Expert
3- Surojit Gupta, Senior Editor, Times of India

Anchor - Frank Rausan Pereira

Producer - Sagheer Ahmad

[shashiketan]

*174: ENERGY SECURITY*
Strategic Oil Reserves:
• Existing storage capacity of 5.3 million tonnes at Visakhapatnam, Mangaluru and Paadoor. This is operational and can support 9.5 days of net imports.
• To tackle emergency situations, allow a country to tide over short-term supply disruptions.
• Indian refiners also maintain 65 days of crude storage, taking the total tally to 87 days
• Storage in ships also.
• Shipping cost also gone up.
• Storage on rent in other countries - extra transportation costs.

Energy Security:
• Oil consumption for India will be key for next two decades: 5 mn barrels/day, in next 15-17 yrs – atleast 9 mn barrels/ day
• 1971 - 2 big companies refused to sell oil to India on US orders.
• We need to be ready in the event of attack, military tensions in Indian ocean – minimum storage for 45 days.
• We need security as we are an emerging economy.

Challenges:
• Foreign owned ships: 92% of India’s oil carried by foreign ship, China – 70% their ships
• India has multiple issues at hand.
• Renewable: 80% of the equipment for solar is again imported.
• Limited capacity for biofuels so far.

How to achieve?
• Aggressively hunting for oil reserves outside in other countries
• Acquire oil assets while the prices are low.
• Indian owned ships
• Spread oil contracts to other countries – diversification.
• In Long term: Shift towards LNG (from 6% to 15%), biofuel within the country.
• Bring in private sector: innovation, investment, efficiency.
• Government should look more strategically rather than only economically.
• Use our good relations with Iran, Saudi – persuade to invest in India – upstream assets, ultra deep water.

India must think in terms of energy security in a holistic manner & not restrict itself only to build SPR. In the upcoming 2 decades oil will be central to our emerging economy hence, we must look out to acquire oil assets, diversifying oil imports, owning ships & encourage investment in India from oil rich countries.

[vineethegde]

The discussions of the renowned panelist’s makes one thing clear to my mind, in India we need technocrats in essential sectors to pursue our interests ruthlessly. Make use of every opportunity. Great points put forward by Mr Narendra Taneja.

[somanathdash]

Love the way Narendra Tanuja ji explained

[yogeshnarayanaswamy]

Narendra taneza sir is talking about long term strategical investment...even i was just thinking on economical view before listening his view...

[pratibhasharma]

Thnk uu rstv.... it helps a lot in terms of not only in academic but also in overall developmnt

[Shivam-xfwn]

Taneja sir should be invited frequently...and no current govt employee...

[bharatgera]

Frank very professional consultant....
God Bless

[bharatgera]

Very informative content..
Thanks to Frank....

[grapeshott]

Good that now a days a comprehensive conclusion is provided at the end

[TarunKumar-vxhq]

Great discussion

Thanks Panelists, Frank and Rstv

[keshav]

Energy expert Narendra Taneja is most realistic, pragmatic.. Renewables.. no what what, Oil will be crucial at least for a decade. It's cheap, easily available, tested.

[rishabhsingh]

With a slight counter to Mr. Taneja's point of view... he said we should aggressively purchase overseas oil storage facilities to store oil in these once in decades 3-month opportunity.... but isn't it very competitive in such circumstances and extremely over-priced to purchase these sites????
When we don't have enough indigenously owned ships we should go for them instead to have a wider view of utilising this once in a while opportunity

[Rahulpriye]

Seems like everyone needs energy as far as the COVID-19 pandemic is concern 😊

[kamalnayan]

can you hv program on andaman nicobar subduction zone....

[Nik-zfxl]

It should be added the inefficient transportation infrastructure in our country. Inefficiency of roads act opposite to the efficient use of oil results in downturn on oil sustainability. In other words pure wastage.
New transportation facilities has to be brought to combat dependency on imported energy.

[jyotishnaseema]

Oil conservativion is key point because pandemic time is low price

[sumitsingh-]

pls if anyone speaks pls use earphone .thanks

[abhinav.mishra]

In India's case decisions are based on how much money politicians can make. All ills of India stem from illicit political money.