As India is too vulnerable to oil prices, India must secure oil needs through various modes of investment. Explain (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· European countries discovered an uncomfortable truth that renewable energy doesn’t always mean reliable energy and rushed to buy natural gas to make up the shortfall.
· Natural gas is used to manufacture urea—and a spike in gas prices will make fertiliser, and therefore food more expensive.
· This should worry India, which imports almost 4 million barrels/day or 1.4 billion barrels/year of oil, a number that will continue going up for the foreseeable future.
· Electric two-wheelers are still a small slice of the two-wheeler market, which in turn accounts for a fraction of petrol demand and petrol accounts for less than 15% of India’s total oil consumption.
· India sits next to the world’s largest oil exporters in West Asia, and the returns from oil investments can be used to pay for oil from one of these countries.
· As an oil importer with large and growing needs, India too is vulnerable to oil prices when they rise sharply and can use the same approach to reduce its risks.
· At times when oil prices are low, as they have been from 2015-2020 including a brief stretch of negative price, some of the windfall can be channelled into such a fund, to mitigate pain if oil prices rise sharply.
KAUSHIK SRINIVASH R 3 years
Kindly review....
IAS Parliament 3 years
TRy to bring coherence in the answer. Keep Writing.
Manish 3 years
Please Review !
IAS Parliament 3 years
Good attempt. Keep Writing.
