Wants NOCs to Become Multi nationals in Global Oil Industry
oil Imports to go down by 10% by 2022
By TN Ashok /New Delhi
Indian Prime Minister Narendra Modi today pushed an tough and competitive agenda for national oil companies to increase crude production to reduce imports by 10% in 2022, the 75th year of Indian independence, even as he asked them to go global . They should also follow the mantra of global energy management which is based on four pillars – access, efficiency, sustainability and security.
The Prime Minister was inaugurating the 12th international oil and gas conference and exhibition here organised by the Fortune 500 national oil marketing company IOCL. The three day conference focuses on the theme of Hydrocarbons to fuel the future: Choices and Challenges
PETROTECH-2016
Asking National Oil companies in the upstream sector and Oil Marketing Companies (OMCs) to become multinational by expanding their horizons globally, Modi said India’s vision is for creating energy corridors to the Middle-East, Central Asia and South Asia. For this to become possible a stable and reasonably-priced energy is the key to economic development, he said. .
“Energy is a key driver of economic growth. Sustainable, stable and reasonably priced energy is the main part of any outreach programme to deliver fruits of economic development to the bottom of the pyramid,” he said. “On one hand, to meet the increasing demand, we need affordable and reliable sources of energy. On the other, we must be sensitive towards the environment.”
The world’s third-largest energy consumer needs to raise domestic oil and gas production to cut imports as also establish partnership with regional energy powerhouses. The Prime Minister said hydrocarbons will continue to play an important part in India’s growth, but the country needs energy that is accessible to the poor as also efficiency in use and energy security.
India’s economy, Modi said was expected to grow fivefold by 2040. “While global economy goes through uncertainty, India has shown tremendous resilience. Foreign Direct Investment (FDI) is at at its peak,” the PM said.
The Prime Minister said growth was expected in various sectors including manufacturing, transport and civil aviation. He said government strive to provide piped natural gas connection to 10 million, double pipeline network to 30,000 kms from the present 15,000 kms. .
Elaborating on the concept of the four pillars of energy management, Modi said, energy should become accessible to the people and cited the Ujjwal Yojana as an example where cooking gas was made available to the poorer sections in the country at a one time cost.
Energy efficiency was the 2nd most important factor he said elaborating on how government policies were tailored to achieve this . The dedicated industrial corridors would raise efficiency level he said citing particularly the Mumbai Ahmedabad industrial corridor. The thrust of government is develop the transport system he said emphasizing that waterways inland and external would be developed and the Sagarmala project would provide the necessary connectivity through the coast.
The GST, he said, would also raise efficiency levels, as it provides for free movement of goods and services through the country breaking down barriers and barricades while proposing taxes at a uniform rate through the nation replacing multiplicity of state levies.
Sustainability is the most sacred part of energy management, he said adding India cared for the environment. Even though India was not contributing much to carbon emissions as western nations, we have taken the initiative to keep the environment clean by committing ourselves to reducing emissions by 33% in the next 15 years. As our installed capacity for energy generation will reach 175 GW by 2022, the task is going to be enormous, he indicated.
On energy security, the prime minister said, India needs to reduce crude imports dependency by 10% by 2022 with national oil companies increasing production by adopting the latest and front line technologies of oil exploration. In terms of its licensing and exploration policy India offers 100% FDI for investment in the hunt for oil with its HELP, Hydrocarbon Exploration Licensing Policy. He said emphasis will be also on shale gas and coal bed methane gas exploration besides the conventional methods of oil and gas exploration off shore and on shore.
: India today offers a red carpet approach for foreign investments instead of red tape, he said adding also level playing field was also being offered to foreign oil companies.
Global oil companies should use the Make in India initiative of the government, he said adding there is tremendous ease of doing business in the country now.” Red Tape is replaced by Red carpet,” he said. Earlier the Oil and Gas Minister Dharmendra Pradhan outlined the challenges before the country in the oil sector while IOCL CMD proposed a vote of thanks.