Strategic crude oil reserves in the country

Strategic crude oil reserves in the country 
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that in 2006, an Expert Committee, constituted by the then Planning Commission, inter-alia, recommended to maintain a reserve, equivalent to 90 days of oil imports for strategic-cum-buffer stock purposes and/or buy options for emergency supplies from neighbouring large storages such as those available in Singapore. 

The Government, through Indian Strategic Petroleum Reserve Limited (ISPRL) is setting up strategic crude oil reserves with storage capacity of 5.33 Million Metric Tonnes (MMT) at three locations viz. Visakhapatnam(1.33 MMT), Mangalore(1.5 MMT) and Padur (2.5 MMT). Also, Detailed Project Reports have been prepared for establishing additional crude oil reserves of 12.5 MMT at Chandikhol (3.75 MMT), Padur(2.5 MMT), Rajkot (2.5 MMT) and Bikaner (3.75 MMT).

At present, there is existing tankage of 14.8 MMT of crude oil and 13.7 MMT of petroleum products in the country which provides coverage of approximately 63 days as per consumption. Strategic crude oil reserves of 5.33 MMT being set up in phase-I and strategic crude oil reserve of 12.5 MMT in phase-II will give coverage of approximately 12 days and 28 days respectively as per present consumption.

Vishakhapatnam cavern has been commissioned and filled with crude oil. Mangalore and Padur caverns would be completed by March and May 2016 respectively. 

India’s oil demand estimated to grow to 9.8 million barrels per day by 2040 
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that according to World Energy Outlook-2015, a recent release of International Energy Agency, India’s oil demand is estimated to grow by 6 million barrels per day (mb/d), which is the largest projected for any country’s oil demand, from 3.8 mb/d in 2014 to 9.8 mb/d by 2040.

According to this report, it has been stated that given the expected availability of international Liquefied Natural Gas at markedly lower prices over the medium term, there is scope for gas demand to rebound and, recover to 68 bcm by 2020, before rising to almost 175 bcm in 2040.

In order to meet the rising demand of oil and gas, the Government has taken various policy initiatives to enhance oil and gas production including inter alia, approving the Marginal Field Policy, linking the transparent new gas pricing formula to the global market, reassessing the hydrocarbon potential in India’s sedimentary basins, appraising about 1.5 million sq. km. of un-appraised basins and setting up of National Data Repository. Further, the Government is encouraging Foreign Direct Investment (FDI) to supplement domestic investment and technological capabilities in the petroleum sector. The present FDI policy for oil and gas sector allows 100% automatic route for exploration and production subject to the existing sectoral policy and regulatory framework in this sector. 

Global Crude oil price of Indian Basket was US$ 30.79 per bbl on 23.02.2016 
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 30.79 per barrel (bbl) on 23.02.2016. This was lower than the price of US$ 31.26 per bbl on previous publishing day of 22.02.2016.
In rupee terms, the price of Indian Basket decreased to Rs 2113.53 per bbl on 23.02.2016 as compared to Rs 2142.93 per bbl on 22.02.2016. Rupee closed weaker at Rs 68.64 per US$ on 23.02.2016 as against Rs 68.55 per US$ on 22.02.2016. The table below gives details in this regard:

Price on February 23, 2016 
(Previous trading day i.e. 22.02.2016)                                                                  
Pricing Fortnight for 16.02.2016
(28 Jan to  11 Feb, 2016)
Crude Oil (Indian Basket)
 30.79             (31.26)              
 2113.53         (2142.93)       
Exchange Rate
 68.64             (68.55)

YKB/Rk/ Daily Crude Oil Price- 24.02.2016      

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