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Raghuvir Srinivasan

NEW DELHI, Jan. 10

INDIA will soon be establishing a strategic petroleum reserve to take care of contingencies. This was disclosed by the Prime Minister, Mr A.B. Vajpayee, during his key note address at the ongoing international petroleum conference, Petrotech 2003.

"We are examining the feasibility of establishing strategic storage of crude oil and petroleum products in our country to create a buffer for meeting unforeseen disturbances in the supply chain and strengthening India's oil security," Mr Vajpayee said.

He also disclosed that the Government has embarked upon a detailed study to identify ways to minimise supply risk from external sources.

"Crude oil prices may shoot up if tensions in West Asia rise, leading to a prolonged shortage of supplies in the world oil market. This may affect our national economy," he said.

Consequently, Mr Vajpayee said, "Oil security has come to occupy a key position in the present policy matrix of the Government."

"We are aware of the need to find viable strategies to explore, produce and refine more from our own hydrocarbon resources. Without substantial domestic production, the nation would be subject to the volatility in crude oil supplies and prices and oil security would be difficult to achieve," he said.

The Prime Minister urged the Government, industry and society to conserve energy saying that increased efficiency in the use of petroleum products offers the most immediate and cost-effective opportunity to reduce resource consumption.

Dwelling on the environmental costs of development, Mr Vajpayee said, "Minimising the global impact is a major challenge in the new century in which developed countries having been responsible for the major part of the problem should take the lead."

The Prime Minister conferred the Petrotech Lifetime Achievement Awards to three personalities who have distinguished themselves in the field of oil and gas. The doyen of the industry and first Indian to head Oil India, Padmashri Mr A.B. Dasgupta, Mr Nuthaki Bhanu Prasad, who got the Padmashri when he was just 31 years old for his contribution to the energy sector and Mr Dhirubhai Ambani, late Chairman of Reliance Industries, were the awardees. Mr Balasubramanian, Group Vice-President, Reliance Industries, received the award conferred on Mr Ambani.

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