April 12th
a very comprehensive article on india's energy needs and compulsions.
http://www.pinr.com/report.php?ac=view_report&report_id=279&language_id=1
In the words of Indian Prime Minister Manmohan Singh, "China is ahead of us in planning for its energy security -- India can no longer be complacent." These words conveyed the sense of urgency that India holds over meeting its energy needs. India is playing catch-up with other major players in the global energy game. This realization has not come a moment too soon given the advent of rising oil prices, India's unprecedented growth levels, lack of energy-efficient technologies and reliance on energy-heavy industries for its development. Power shortages and blackouts continue to plague India's major cities and undermine the confidence of investors and foreign companies operating in India. These power shortages have been fueled by a combination of burgeoning growth rates, inefficiencies by the state-run power sector and power being stolen or siphoned for votes. The growing popularity of gas-guzzling, sport utility vehicles and multi-purpose vehicles in India is also placing strains on its energy needs.
India, as the world's number six energy consumer, is also in a more desperate situation compared to its peers. For example, oil imports account for two-thirds of India's oil consumption while China imports one-third of its crude oil consumption. Furthermore, China's proven oil reserves stand at 18 billion barrels compared to five billion barrels in India. Indian-owned Oil and Natural Gas Company (O.N.G.C.) has invested $3.5 billion in overseas exploration since 2000 while Chinese-owned China National Petroleum Corporation (C.N.P.C.) has made overseas investments of an estimated $40 billion.
Indian policymakers have initiated numerous policies to address India's growing energy needs. For example, India is pushing for the creation of 15-45 days of emergency reserves in Rajkot, Mangalore and Vishakapatnam. India is also diversifying beyond oil to access other energy resources such as nuclear power, coal, natural gas and renewable energy resources as well as stepping up exploration activities within its borders.
Nevertheless, for the short to medium term, India will have to rely on an increasing amount of imported oil and gas to meet its energy needs. As a result, India is stepping up energy diplomacy with states in the South Asia region as well as states further afield in Central Asia, Russia, and the Middle East and as far away as Latin America and Africa. O.N.G.C., for example, has invested in offshore gas fields in Vietnam, as well as energy projects in Algeria, Kazakhstan, Indonesia, Venezuela, Libya and Syria, while Indian Oil Corporation is looking to invest in deepwater exploration in Sri Lanka. Reliance Industries, India's largest private sector oil firm, also has stakes in an offshore field in Yemen and a liquefied natural gas project in Iran and is in talks to acquire energy assets in Nigeria, Chad, Angola, Cameroon, Congo and Gabon in Africa as well as in South America and the Middle East. ...
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