Given that Iran accounts for around 10 per cent of India total oil imports, the immediate factor for New Delhi will be to look at various options to deal with the situation without jeopardising its energy security.
Despite the easing of international crude prices, the central government is unlikely to cut central excise duties since a cut of Re 1 would result in a loss of revenue of Rs. 10,725 crore.
In 2012, the International Energy Agency (IEA) in its ‘World Energy Outlook’ said that the world was entering a ‘Golden Age of Gas’. With its lower carbon-emitting properties, gas seemed poised to claim its rightful place in the global energy mix as a bridge between polluting hydrocarbons and green renewables. Moreover, it has all the ingredients to make it as worthy a contender in the energy geopolitical game as did oil a few decades ago.
The world is entering an era with increased global demand for energy, price volatility, and rising concerns about environmental burdens and the global impact of climate change. Directly or indirectly, these factors have given rise to related concerns such as deregulation and geopolitical uncertainties. Moreover, the challenges related to the energy issue go beyond scientific or technological aspects and extend to access to resources, regional conflicts, pricing and energy infrastructure management.
China’s launch of a yuan-denominated oil futures exchange will provide it with the opportunity to create an Asian crude oil benchmark and give it more clout in crude pricing and for promoting the yuan as a truly global currency.
India should invest in creating a competitive solar module sector across the manufacturing chain, from procuring primary resources to the finished product.
In May 2017, some 1,200 delegates from 110 countries, including 29 visiting heads of state and government leaders, gathered in Beijing for China’s biggest diplomatic event, which was held to showcase the Belt and Road Initiative’s (BRI) achievements to date, as well as draft some new ideas. The forum also formalised the US$50 billion China–Pakistan Economic Corridor (CPEC), a flagship project of the BRI, projecting it as a game-changer for Pakistan’s economy.
India’s record in wind energy development is good. But the existing technology is fast becoming outdated. Evolving technologies like kite wind should therefore be considered.
This volume looks at the evolving gas market and the various players who influence it -- both as producers and consumers. However, some of the players, such as Australia and the new African producers, as well as Japan and South Korea, the two largest LNG consumers, have not been included as their approach tends to be more commercial than geopolitical in nature.
Given that over 70 per cent of the world's energy consumption comes under the IEA umbrella, the association with the agency will substantially increase India’s relevance in global energy governance.
Iran Sanctions: India’s Options
Given that Iran accounts for around 10 per cent of India total oil imports, the immediate factor for New Delhi will be to look at various options to deal with the situation without jeopardising its energy security.