September 26, 2022 | Strategic Crude Reserves: Can India Dangle The Bait For Middle East Crude Producers? | The proposal to ramp up capacity in the strategic crude storage was floated long before the latest crisis erupted. Since this is going to be an expensive proposition, the expansion project is proposed to be created through public-private participation. It isn’t going to be easy to find private partners who will be ready to stump up the funds, which is why there is growing talk that the money may eventually have to come out of the government’s Oil Industry Development Fund. India’s security concerns stem mainly from the threat that Pakistan poses. The perceived view is that Pakistan cannot sustain a war for more than two weeks. Put that in perspective: India has an oil storage capacity that is sufficient to meet two months requirements. The leading Middle East oil producers such as Saudi Arabia, UAE and Kuwait have a strategic purpose to create crude storage facilities. One must consider if such reserves are safer within one's own borders or provide greater security, during prolonged wars or against acts of sabotage if located outside one's territorial jurisdiction. This is where India can meld compulsion and convenience to create mutually beneficial outcomes for India and its friends in the Middle East. Will India consider offering countries like Saudi Arabia and its neighbours the opportunity to invest in the strategic crude storage reserves located here? Click Free Access column Petro Intelligence for details.

The slide in crude price continues. Will it touch $70 per barrel? India is keen that crude supplies from Iran is revived. The US may relent by lifting the sanctions against Iran’s oil trade. The war in Ukraine seems to have benefitted China the most. As the world is glutted in refining capacity, sudden revival of the mega refinery project in Maharashtra looks unlikely. These are among the five subjects discussed in Column Policy.

ONGC is in a hurry to collaborate with oil majors to speed up its exploration activities; Quite a few major players are entering EV charging business in India. Virtual stalemate in shale exploration; Oil India enters Odisha in search of oil and gas. These are the subjects in column Regulation. There are exclusive reports in almost all columns.

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September 23, 2022: Power shortage promotes increased sale of diesel as it is used for back-up power generation. Though the power deficit narrowed in August, the deficit continued. Click Column Special Database for details on the power situation in August.