Bhubaneswar: India has launched an ambitious project for new oil exploration in the middle of wars, sanctions and conflicts and a global energy transition. This step is very much critical for India and its energy security. This is the time when global turbulence is very high and the level of uncertainty is prominent.
Over the last decade, the country has diversified its options, built resilience, have been able to navigate those challenges. Whereas each of these challeges posed by the turbulances have actually provoded India opportunities. This is the factor that has stood by the position that we are in.
Speaking about our major oil imports, we buy 30%of our crude oil is bought from Russia. American president Donald Trump has threatened of secondary sanctions on those who buy or import oil from Russia.
In February 2022, when the military conflict between Russia and Ukraine commenced, India was buying 0.2% of its crude oil from Russia. In today’s time the percentage has gone up to a considerably higher point. India, also has diversified the source of supplies and the list of countries in terms of crude oil imports has gone up from 27 to 40 counties. Moreover, when it comes to importing its oil supplies, India has been very clear that it would buy crude oil from wherever it has to. Because the policy of the Indian government is that the commitment towards the consumers is the foremost.
Russia is one of the main suppliers of crude oil in 2025 with a production of approximately 9 million barrels of oil per day. This is the quantity that consists about 10% of the global production and consumption per day. So hypothetically, if that 10% is off the table and stopped from the global consumption, the whole world would be left from availing basic necessities like heat in the winter, air conditioning in summer, transportation system would be beaten up. There could be other consequences as well such as if a country buys the needed quantity from the remaining 90%, the price would sky rocket.
Coming to the sanction part, Russian oil is never on sanctions but on a price cap. India is happy to by oil under a price cap as it becomes cheaper comparatively. India’s position , here, is that it is not worried. Whatever the scenario would be, we will deal with it. There are many other oil suppliers in the global market such as counties like Iran, Guyana, Canada etc. If one door closes, another door remains open for every crisis. India is a country which operates as per the rule of law. If there is a sanction on any country and it is agreeably justified then we will go according to that. Having mentioned so, no situation whether good or bad remains forever. Situations and relations can change with time, diplomacy and negotiations.
-OdishaAge
