3 weeks ago

India's Energy Security Needs State-Owned Oil Firms and Strategic Reserves

India's Energy Security Needs State-Owned Oil Firms and Strategic Reserves
For energy security, way forward is not public or private, but both · indianexpress.com

India needs a lot of oil and gas to keep cars moving and power on, and it buys much of that oil from other countries.

Some people think India should sell its big oil companies to private businesses.

This article says that would be a bad idea.

It explains that when the government owns oil companies, it can use them to keep the country safe during hard times.

For example, these companies can keep producing oil even when it is not making much money.

The article also says India should build big underground oil storages.

These storages work like an emergency pantry, keeping oil ready in case supplies stop.

India has also been mixing ethanol, which comes from plants, into petrol, and that has already saved a lot of money and reduced pollution.

The article says the best plan is to do both: keep the government companies and build more backup storage.

Key facts

Finding costs (ONGC focus areas)
$60-80 per barrel
Forward Brent price
Near $70 per barrel
ONGC stake in Petronet LNG
About one-eighth
ONGC stake in IOC
About one-seventh
Offshore no-go areas cleared
99 per cent
Area opened for exploration
Nearly 1 million sq km
Ethanol blending level
20 per cent, ahead of the 2030 target
Crude displaced by ethanol blending
310 lakh tonnes

Sources

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