India’s major vulnerability – the OIL
Peter Zubek, Indiadaily special correspondent for Energy
India’s major vulnerability – the OIL
Peter Zubek, Indiadaily special correspondent for Energy
Since 9/11 tragedy, US has been buying Crude oil to increase its strategic reserve immensely. US is a net importer of oil. So is India. Learning from US, India for the first time is building a large strategic reserve since 2002. Because of
these special situations and India/China demand, petroleum prices have sky rocketed. If there is a major war between India and China or Pakistan, India will be at risk
due to lack of oil reserves and domestic oil supply. China or Pakistan may receive a steady supply of oil reserves from neighboring countries.
India’s main supplier will be Russia. Russia has more oil than many other countries combined. However, Russian oil will take months to
reach India. Crude oil is the most essential commodity for any industrialized economy. It is the heart line of a country. The ruling BJP realized this long time back. Though India has developed a strategic reserve, given the fact that India has least oil per citizen, India is very vulnerable from many directions. A run on the international oil price will bring Indian economy to its knees. The “feel good effect” will turn into “feel killed effect”. Though US does not have enough domestic oil, it is next to Canada and Mexico. Canada has world’s second largest oil. In addition, US Oil in Alaska is in abundance. Japan as an industrial country is vulnerable too. But it closer to Siberian oil. Indian Government has failed to understand the essence of using alternative fuel. It can be hydrogen, ethanol from corn, solar energy or even wind. India’s commercialization effort of alternative fuel usage should lead the world out of this catastrophic oil dependence. Most of the industrialized countries know the source of alternative fuel in the laboratory level. India is no exception. But India needs to proceed very fast to make sure alternative fuel is used widely in the country. Japan is progressing the most in the world in this respect. India’s security, economic well-being and the overall “feel good effect” will entirely depend upon supply of abundant cheap energy source. Unfortunately, neither BJP nor Congress has this as one of
the items in their major manifesto for the upcoming election. While Indian mass is busy with Bollywood, “feel good effect” and newly invented outsourced BPO jobs, the rug
under their feet may be shifting. Think about the number of people who have cars in India today and
the number twenty years back. Also think the number in 2024. Yes! You guessed it right. Scenario is not very pleasant unless India wakes up to the reality.