In wake of the increasing fuel prices, PM Modi takes stock of global energy scenario with oil company chiefs

New Delhi, October 15: Coming up with challenges pertaining to the oil prices and increasing fuel price in India, Prime Minister Narendra Modi met CEOs and Experts from the Oil and Gas sector, from both India and abroad. Interacting with the experts, PM Modi discussed ways in expansion of oil and gas infrastructure in India; enhancing exploration and production; potential in solar energy and biofuels.

 

During the interaction global CEOs and Experts appreciated the steps taken by the Union Government over the last four years, for ease of doing business, and specifically in the energy sector in India. The experts made a special mention of India’s competitive ranking from the upstream investment point of view which has gone up from 56 to 44. The experts appreciated the unique initiative of this kind of a dialogue, which brings various stakeholders together on policy matters.

Interacting with the global leaders of the energy sector, PM Modi highlighted the significant positioning of India in the oil and gas market. He noted that the oil market is producer driven; and both the quantity and prices are determined by the oil producing countries. Though there is enough production, the unique features of marketing in the oil sector have pushed up the oil prices. PM Modi also made a strong case for a partnership between the producers and consumers, in the oil market, as it exists in other markets. This will help stabilize the global economy which is on path of recovery.

Drawing attention of the experts on certain key policy issues relevant to India. PM Modi firstly highlighted that the consuming countries, due to rising crude oil prices, face many other economic challenges including serious resource crunch. The cooperation of the oil producing countries would be very critical to bridge this gap. He appealed to oil producing countries to channel their investible surplus to pursue commercial exploitation in oil sector in the developing countries.

Secondly, PM Modi spoke of higher acreage under exploration and sought cooperation of the developed countries both in terms of technology and extension of coverage.

Thirdly, he sought the role of private participation in the distribution of gas sector. Talking of technology, he appealed for assistance in areas where high pressure and high temperature technology applications are relevant to commercial exploitation of natural gas.

PM Modi also suggested the various policy initiatives and developmental measures undertaken by his Government in the sector like the liberalisation in gas pricing and marketing which has been particularly in deep waters and requiring technology for high pressure high temperature exploitation.