12-09-2012, 05:05 PM
Indian Strategic Petroleum Reserves Limited
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Strategic Storage of Crude Oil
ENERGY SECURITY
* India is facing the critical challenge
of meeting a rapidly increasing
demand for energy.
* It’s domestic production is not in
proportion to the demand.
* India imports approximately 70% of
its oil, most of it from the Middle East
which is politically volatile.
* India's dependence on oil imports is
expected to be 92% by the year 2020.
* Indian economy is highly vulnerable
to supply disruptions.
* Hence, Energy Security is paramount
for the country’s economic
development.
Strategic Storage in India
* Strategic Oil Storage is to provide for
Emergency Response Mechanism
against short-term supply disruptions
under various scenarios.
* Considering investments & costs
involved, the Government decided that to
begin with a strategic crude oil reserve of
5 MMT, which is equivalent to 19 days
cover on import basis in 2006-07 may be
created so as to provide the necessary
energy security to the country.
Global Oil Scenario
* Creation of International Energy Agency
(IEA) following oil shock of 1973 / 74 in
the framework of Organisation of
Economic Cooperation and Development
(OECD).
* 26 developed member countries of OECD
& IEA committed for oil stocks of 90 days
of net oil import.
* Stock holding norms for EU countries --
even more stringent, being based on
consumption.
Management structure
• Indian Strategic Petroleum Reserves
Ltd (ISPRL), a SPV created under Oil
Industry Development Board (OIDB),
Ministry of Petroleum & Natural Gas to
have ownership and control of the
crude oil inventories and to coordinate
the release and replenishment of crude
oil stock with “Empowered Committee”
to be constituted by the Government .
AREAS OF CO-OPERATION
* Government of India is in the process of
setting up Strategic Storage of Crude
Oil at various locations (up to 15 MMT in
phases).
* There exists scope for mutual
co-operation and exchange of
information on technology transfer with
respect to Strategic Reserves.