The energy race

This is with reference to the report that Brent crude has plunged to 4-year low. In the 1970s soaring oil prices led to massive transfers of national wealth. America spends half a trillion dollars a year on oil imports. On the other hand, petroleum contributes to 80 per cent of Saudi Arabia’s budget, 45 per cent of its GDP and 90 per cent of its export earnings.

When oil prices started their 20-year decline after the peak of the early 1980s, the global economy went on a two-decade growth spurt.

Technologies then emerged to extract gas from shale and rock formations. With fracking, the US becomes the world’s largest producer of natural gas.

The natural gas reserves in Russia’s Arctic region, at the current levels of price and consumption, would generate enough fuel to feed Europe for around 75 years, with a total value of almost $17 trillion. China, another major importer, may also become an exporter, given that it has the world’s second-largest store of shale oil. In all, some 38 countries have 4.8 trillion barrels of shale oil, making oil a common commodity.

Shale oil can be developed inexpensively, at a cost comparable to $50 to $60 per barrel and the rate is sliding down .With so much oil and gas, wars over oil may be passe . We may fight over water next!

R Narayanan

Ghaziabad

State facts, please

Digvijay Singh is a loquacious spokesperson of the Congress. While in Hyderabad recently he ridiculed the idea of naming one airport after two persons — Rajiv Gandhi and NTR.

He should be pardoned for his ignorance. For, the domestic terminal of Chennai airport is named after Kamaraj and the international one is named after Annadurai. TH Chowdary

Secunderabad

Restart in style

This is with reference to the report on Saarc nations signing a last-minute energy deal . What a turnaround — from face-off to bonhomie with Prime Minister Narendra Modi and his counterpart from Pakistan Nawaz Sharif shaking hands warmly at the 18th Saarc summit in Kathmandu.

The bonhomie could trigger India’s willingness for resumption of the stalled bilateral dialogue with Pakistan. The act of of shaking hands needs to be carried forward to establish peaceful and co-operative relations to bring peace in the border areas.

It is good that the summit provided an opportunity for the estranged countries to restart meaningful dialogue with an open mind to iron out the differences both in letter and spirit, as the people of both countries want peace.

HP Murali

Bengaluru

Trade we must

This is with reference to the editorial ‘Exports in limbo’ (November 28). Since India’s export share in world trade was a minuscule 1.7 per cent in 2013, any drop in the same is a concern. It affects the current account deficit also and the mere fact that imports also came down more sharply in October to offset the damage is lazy logic. Of the comprehensive suggestions the edit makes to further exports, the delineation of foreign trade policy needs immediate attention and should take the least time. Such a policy provides direction, addresses the concerns of exporters and identifies thrust areas and incentives.

If the policy — which was due in April — is held up, because of “sharp differences between the finance and the commerce ministries over tax incentives” as was reported in the media, the ministers concerned should jointly resolve the bureaucratic tussle. The government’s focus on ‘make in India’ would receive a fillip if the policy finds ways of boosting exports of manufactured goods.

YG Chouksey

Pune

Mixed results

The decision by the government to sell stakes in State-run banks has its pros and cons, for it will improve performance through better planning and management expertise. But it is debatable whether it will serve the objective of alleviating poverty and indigenous growth by opting to fund creditworthy businesses.

Vikram Sundaramurthy

Chennai

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