Need for strategic oil reserves: In 1990, as the Gulf war engulfed West Asia, India was in the throes of a major energy crisis. By all accounts India’s oil reserves at the time were adequate for only three days. While India managed to avert the crisis then, the threat of energy disruption continues to present a real danger even today. About 1 billion barrels of oil are held in strategic reserves globally. Global oil consumption is 0.1 billion barrels/ day. So, 4.1 billion barrels is equivalent to 41 days of production. USA has world’s largest such reserves. Majority of the remainder reserves are held by IEA members and some non-IEA countries like China also hold large reserves. Need for strategic oil reserves: In 1990, as the Gulf war engulfed West Asia, India was in the throes of a major energy crisis. By all accounts India’s oil reserves at the time were adequate for only three days. While India managed to avert the crisis then, the threat of energy disruption continues to present a real danger even today. India imports more than 83% of its oil needs, the price crash offers a breather on the macroeconomic front. According to estimates, a one-dollar decrease in crude oil price reduces the oil bill by around $1.6 billion per year. The collapse in oil prices will cut the country’s import bill, and soften its current account deficit. Need for strategic oil reserves: In 1990, as the Gulf war engulfed West Asia, India was in the throes of a major energy crisis. By all accounts India’s oil reserves at the time were adequate for only three days. While India managed to avert the crisis then, the threat of energy disruption continues to present a real danger even today. Amongst all the states, Assam has the highest crude oil reserves, amounting to 169.42 Million Metric Tons. India is the fourth largest energy consumer. India imported 76.5% of the 130 million metric tons of the oil it consumers. India still faces annual import bills in the $100 billion range. About 70 per cent of the established hydrocarbon reserves is oil and rest is gas. The recoverable hydrocarbon reserves are of the order of 2.6 billion tonnes. Production: India was a very insignificant producer of petroleum at the time of Independence and remained so till Mumbai High started production on a large scale.
Need for strategic oil reserves: In 1990, as the Gulf war engulfed West Asia, India was in the throes of a major energy crisis. By all accounts India’s oil reserves at the time were adequate for only three days. While India managed to avert the crisis then, the threat of energy disruption continues to present a real danger even today. About 1 billion barrels of oil are held in strategic reserves globally. Global oil consumption is 0.1 billion barrels/ day. So, 4.1 billion barrels is equivalent to 41 days of production. USA has world’s largest such reserves. Majority of the remainder reserves are held by IEA members and some non-IEA countries like China also hold large reserves. Need for strategic oil reserves: In 1990, as the Gulf war engulfed West Asia, India was in the throes of a major energy crisis. By all accounts India’s oil reserves at the time were adequate for only three days. While India managed to avert the crisis then, the threat of energy disruption continues to present a real danger even today. India imports more than 83% of its oil needs, the price crash offers a breather on the macroeconomic front. According to estimates, a one-dollar decrease in crude oil price reduces the oil bill by around $1.6 billion per year. The collapse in oil prices will cut the country’s import bill, and soften its current account deficit.
This is a list of countries by proven oil reserves.Proven reserves are those quantities of petroleum which, by analysis of geological and engineering data, can be estimated, with a high degree of confidence, to be commercially recoverable from a given date forward from known reservoirs and under current economic conditions. The Caspian Sea became even more important in the modern era after the discovery of significant energy resources, including over 50 billion barrels of oil and 9 trillion cubic meters of natural gas in proven or probable reserves. What’s the issue? The countries surrounding the Caspian Sea make use of its strategic qualities.
As on 31 March 2018, India had estimated crude oil reserves of 594.49 million tonnes (MT), declining by 1.59% from the previous year. The largest reserves are found in the Western Offshore (Mumbai High, Krishna-Godavari Basin) (40%), and Assam (27%).
This will take the strategic reserve capacity to 15.33 million tons. Apart from this, India is planning to expand more strategic crude oil facilities in second phase at Rajkot in Gujarat and Padur in Udupi district of Karnataka. This is a list of countries by proven oil reserves.Proven reserves are those quantities of petroleum which, by analysis of geological and engineering data, can be estimated, with a high degree of confidence, to be commercially recoverable from a given date forward from known reservoirs and under current economic conditions. Oil Reserves in India. See also: List of countries by Oil Reserves. India holds 4,728,790,000 barrels of proven oil reserves as of 2016, ranking 24th in the world and accounting for about 0.3% of the world's total oil reserves of 1,650,585,140,000 barrels. India has proven reserves equivalent to 2.9 times its annual consumption. The country, which has rich oil reserves largely depended on it for its revenue. But when the oil price dropped drastically in 2014, Venezuela which received 96 per cent of its revenue from the oil exports, suffered a shortage of foreign currency. This made import of basic essentials like food and medicines difficult. Impacts: