Acquire overseas oilfields to secure India's fuel supply: CII

With oil prices below $100 a barrel, time is perhaps opportune for entering into long-term crude oil contracts and strategically acquiring oil acreages, the Confederation of Indian Industry said.

“...the industry, both in the public and private sector, should collaborate to secure oil equity overseas,” it said.

According to CII estimates, in a business-as-usual 8 per cent GDP growth rate scenario, the demand of oil would be 328 Mtoe by 2030, an increase of 3.8 per cent year-on-year.
“Ensuring India’s energy security requires active participation from Indian industry..., with support from the Government to secure fuel supply at  affordable prices,” CII Director General Chandrajit Banerjee said.

The price of crude oil has increased almost 100 per cent since February 2009.

The accelerated demand for energy makes it imperative for India to garner assured and continuous supply of fuel at reasonable prices through internal efforts and acquiring international acreages, the chamber said. The Confederation said Indian private sector has the capability and the capacity developed for upstream and downstream activities. NELP on the other hand, has brought in new league of domestic firms to oil exploration, production and refining activities. India has also achieved significant capacity in exports of refined petroleum products, shipping 39 million tonnes in 2007-08.

Estimates suggest that by 2020, only about 25 per cent of the total demand will be met internally, it said.

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