Amidst the complexities of geopolitical tensions and the dynamic shifts within the global energy market, Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri brought his expertise to shed light on India's strategic imperatives.
He stated, "India is where the energy story is truly flourishing, with heavyweight entities such as Exxon, Chevron, Petrobras, Petronas, and BP eyeing India with keen interest" Minister Puri emphasized the nation's pivotal role as a hub for energy expansion and demand.
In this context of burgeoning interest and promise, Puri elucidated on India's vision for energy security, showcasing the remarkable progress made in diversifying energy sources and lessening reliance on conventional fuels. He also explored the partnership between the United States and India within this domain, by highlighting the mutual benefits and shared objectives driving collaboration forward.
Q. Considering the Russia-Ukraine crisis, how would you evaluate India's approach to addressing the crisis concerning the energy sector and affordability amidst geopolitical complexities?
A: Our strategy has been highly successful. As of February 2022, the Russian Federation accounted for only 0.2 per cent of our total oil imports. Since then, our imports from Russia increased due to their offering of cheaper oil.
As a democratically elected government, we had to ensure availability, affordability, and sustainability. We have reasonably succeeded in all three aspects. Despite geopolitical challenges, I believe major state players involved do not desire an outright outbreak of hostilities, which gives me confidence.
Q. As India increases its purchases of Russian oil, some voices from the West suggest that India could be positioning itself unfavorably in history. How do you respond to such assertions?
A: The heart of the narrative is that somebody is financing the war machine. This is a very selective approach. We are clear in terms of policy. If concerns arise about filling the coffers of a country at war, then why not stop gas purchases as well? We have a strong stance on this matter, and our decisions are made with careful consideration.
Q. As the world's third-largest oil consumer, heavily reliant on imports for over 85 per cent of our needs, how have your discussions unfolded with producer cartels regarding their production cuts?
A: I've never engaged in discussions with foreign ministers dictating that they must release oil to prevent price hikes. I firmly believe in each party acting in its own interests.
The market dynamics are evolving with the emergence of new oil sources such as Guyana, Suriname, Brazil, and Namibia, alongside advancements in green hydrogen and ethanol technologies. Regarding gas, I anticipate increased availability by 2025-26, aided by significant pipeline developments in Africa. While some newer oil-producing countries contemplate OPEC membership, they may not adhere to production cuts.
It's essential to recognize that production limitations can't stifle others initiatives. If I were part of a producing country, I'd exercise caution in decision- making.
Q Except for excise duty cuts on petrol and diesel, at their end, the oil marketing companies (OMCs) have not reduced prices for nearly two years now. Is that a good or bad thing?
A: It's a deregulated sector. We made a decision not to dictate pricing to the OMCs, but they have not raised prices either. Had they done so, we might have faced political turmoil.
We compensated them for their losses, but they must understand their role as responsible citizens in a deregulated environment.
Q. During the G20 meeting, you mentioned that India is likely to reach its net-zero status well before the designated year of 2070. Could you elaborate on this assessment?
A: Our goals, including the net-zero target set for 2070, are carefully devised to ensure they are attainable. We've been making strides in meeting our commitments, particularly in the realm of biofuels. The pace of our progress indicates that achieving net-zero status before 2070 is within reach.
Q. What about the green hydrogen target of 5 million metric tons?
A: The target of 5 million metric tons per annum is conservative. Companies like Indian Oil Corporation are moving towards green hydrogen, and there is substantial progress in this direction. The success of green hydrogen depends on local demand, production, and consumption, which India, the United States, and China can fulfill. Therefore, I believe our green hydrogen targets can be surpassed in the coming years.
Q. With the possibility of Donald Trump returning as US president and ongoing conflicts in the Middle East, particularly in Palestine, how do you foresee these factors influencing India?
A: I accurately predicted Trump's initial victory. When it comes to India, there exists a bipartisan consensus within the United States, just as there is bipartisan support for the US in India. The vibrant Indian community in the US further solidifies this relationship. Look at the robust exchanges between our nations in technology and pure sciences.
Regardless of the outcome of US elections, the India-US relationship will continue steadily. In the sectors I oversee, there's no space for philanthropy or altruism, investments are made to yield returns. This pragmatic approach is integral to the success of the India-US partnership.
( Curated from the Interview of Hardeep Singh Puri with Sukalp Sharma, Indian Express)
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