In the light of current events and rise in petrol prices, lets have a look into the story of how the petrol prices are decided and everything involved.
“India has 30 billion in unexplored oil reserves. We are never again a hydrocarbon-poor nation. After the current state of oil and gas revelations, we are traveling from having nothing to having something. We have a hydrocarbon asset base of 30 billion ton or 225 billion barrel of oil and oil comparable gas holding up to be found”
Petroleum minister, Mani Shankar Aiyar
From past India has not keen developed its E&D(Exploration & Development) due to uncertain reasons and also it has been said that the major oil conglomerates had bought the rights for the E&P(Exploration and production) and they are using our resources for their benefit. India has a lot of oil reserves which are yet to be recovered but at the current technology of the Indian oil and gas industry, it is impossible to explore oil and gas reserves which will maintain the supply and demand ratio in a proper ratio
Too dependent on imported oil? May be.
Currently, India is the third largest consumer of oil in the world compared to USA,China,Russia and Japan. Would we feel to be proud to see our nation at third position or to feel shame as we are being dependent upon other nation as we are importing around 80% of the oil requirements. We have around 764.38MMt proven oil reserves but if we explore other areas where oil is profound can help us in getting more production. Be that as it may, India is yet to investigate the majority of its potential zones where the raw petroleum can be found. India needs to complete broad investigation into the unfamiliar residue of Andaman and Nicobar Islands, Bay of Bengal and different areas in the regional waters of Indian Ocean that relate to India.
While India imports huge measures of crude oil and petroleum products to deal with nation necessity by paying a huge amount of crores to West Asian Nations. For an instance Indonesia is being benefitting its national economy by exploring the oil and combustible gas reserves in the Andaman and Nicobar area, absolutely in light of our national absence and the Indian government hasn’t raise any concern of being exploiting its reserves for the benefit of other nation economy.
Does it sound a play of Political Drama or lack of engagement of Indian oil E&P?
Andaman is situated in the east coast in the middle of the Bay of Bengal.It is known as the Middle East of India in view of its Huge Oil and Gas Reserves. This is a consequence of subduction process which is happening in the Bay of Bengal whereby the Indo-Australian plate is bouncing under Eurasian Crustal Plate and driving ride of rich oil & gas reserves. Indonesia lies to the southern part of this subduction zone which produces 1 million barrels of crude oil daily making it the No .1 producer of natural gas in the Asia-Pacific region.In reality, even Myanmar which lies in the north of this subduction zone makes 30k barrels of crude oil daily. By these we can move forward for the exploration in those areas as it may have huge oil & gas reserves.But ONGC has given the Andaman blocks to the other nation for exploitation. Why can’t India holds its reserves in order to succumb the imports.
Import data of crude oil – India
The question that rises is that why India spends excessively its forex reserves in its imports rather begin its exploration in those areas where the reserves are profound.While other nations such as Myanmar & Indonesia are exploiting the oil & gas reserves right in our backyard in Bay of Bengal.Among all the potential suspicious territories, Andaman and Nicobar are particularly interesting. It is entrancing to observe that this entire zone rich in oil and oil gas is spread over a district of 83,419 square km. There are about 22 significant water bores were explored and were seen to be rich in oil and natural gas. India’s sedimentary areas about 75% are yet to be explored.
As per the Govt report, 18 trillion cubic feet of gas are yet to be conveyed in India and 27 trillion cubic feet of gas are yet to be explored. Why don’t we uncover the oil holds the show in the significant water blocks of Andaman and Nicobar? Why are we squandering our Forex holds in boosting the economies of Middle East?
In 2014 alone huge amount of Rs 10 lakh crores got transferred to the Sheikhs of Middle East for the total production of oil. As a result of the fall in International oil costs, this whole got conceivably reduced to Rs 8.5 lakh crores. This decline in these proportion of overall oil price has been fuelling India’s advancement story or else inflation would have cause India into a crisis nation.In the past India was forced to mortgage its gold reserves for the balance payments and the same situation arises when the cost of oil reaches it peak.
The government has offered 5 significant water blocks in the Andaman Basin having a total potential of 1296 billion barrels to the other organisations. Nevertheless, the question arises why does the national oil companies like ONGC, OIL, GAIL, GSPC don’t stand out in handling these significant water blocks.
India spends about 31% of its forex reserves for the exchange of oil and gas from the Middle East. If India starts extracting its own oil & gas reserves from its significant deep waters,then nobody can stop us from transforming into an exporter of oil as well as can be a member of OPEC and our economy will see a boost rise in the GDP improvement. The dream of what we see about $ 1 getting the chance to be Rs 1 Rupee will become true.
During the 1971 war, there were just private oil businesses in India. At the time of the war, the private oil companies( Burma Shell & ESSO) declined to supply oil to Indian Army expressing that there ought to be no war as a war was terrible to business. This kind of situation evoked the idea of nationalizing oil and natural resources under the leadership of Prime Minister Indira Gandhi. India made great leaps in developing oil refineries for relevant purposes. The refineries that were developed were made primarily with Iranian oil in mind, since India has had good relations with Iran, stretching back centuries. On an off chance that India is pressurized to bring in Saudi oil, we would need to put in billions of dollars in adjusting refineries which increase petroleum costs to near INR 150 for per litre.
Presently, these two organizations accordingly assumed control and slating beneficial deals to a similar Burma Shell and ESSO masking as Royal Dutch Shell and EXXON both as a team with Reliance Industries.
Imperial Dutch Shell and Burma Shell are backups of Shell Corporation controlled by House of Rothschild focused in London who additionally controlled the old EICs(East India Companies) and the then Bank of England. EXXON is the name given to one of the organizations shaped in 1911 when the first Standard Oil Empire was broken into littler units.This whole realm of Standard Oil is controlled by one family the House of Rockefeller, focused in New York. Strikingly Rockefeller and Rothschild are identified with each different as they have a convention of intermarriages inside these two houses.
Now we see the subject of national limits are a myth. Say, if Indians don’t care for Burma Shell then Royal Dutch Shell will purchase Indian oil organizations. On the off chance that we don’t care for ESSO then the EXXON will purchase Indian oil organizations.So basically the nation is bounded by these organisations which are trying to take control. Firstly, MNCs(Multinational Companies) are bringing their capital into India to put resources into the above organisations.Presently we are persuaded that this capital is severely required for foundation ventures which are fundamental for India to wind up as a first world nation. To start with, if MNCs are bringing the capital required for India to grow then why state local governments are reaching billions of dollars of obligation from IMF, World Bank, Asian Development Bank and so on?
Secondly, these MNC’s are purchasing all state-possessed manufacturing enterprises in India. Presently where they offer these items? To Indians obviously. Let us take the case of India’s Oil and Natural gas.Till now Indian Government was offering oil for Indians. Whatever benefit that they were making (after waste and wasteful aspects) was utilized to run the administration. Presently it was advised to us that this type of overseeing oil organizations is wasteful as it creates a cycle where the money we spend is spent back on us.To make these organizations aggressive they ‘must be sold’ or privatized.
Although on the surface it appeared local Indian private businessmen were setting up businesses, now it’s clear that foreign MNCs paid Indian companies to corner the oil blocks for exploitation so that they could make more money by selling Indian oil to Indians at international speculative prices.
In the course of the last few Years, the nation’s reliance on imported oil has consistently expanded because of dormant household generation and rising interest. This high reliance on imported unrefined petroleum has huge ramifications on vitality security and the general money related strength of the country. Domestic generation remained flat, hampered by restricted prospective, delays in the authorizing of new activities and declining creation from existing developing fields.
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