• Nov 3, 2010
While delivering his inaugural address at the Petrotech 2010 conference in New Delhi, Indian Prime Minister Dr. Manmohan Singh outlined a potential problem that lingers over many emerging nations. Singh predicted India's future demand for hydrocarbon fuels and stated that the nation's emerging automotive industry, combined with its growing economy, could lead to potential oil supply issues. Dr. Singh predicts that India's demand for hydrocarbon fuels will rise 40 percent over the next ten years, whereas increase in supply from the world's maturing oifileds is only expected to grow by 12 percent. Of course, this suggests that India will have to pursue every available opportunity to secure oil and gas from outside sources.

In his address, Dr. Singh spoke of oil allies, potential shortages and a future driven by hydrocarbon fuels. Highlights of Dr. Singh's address include:
In the last two decades or so, Asia's share in the growth in demand for hydrocarbons has risen substantially while that of the OECD countries and the European Union has declined. This shift has been caused by high rates of economic growth and increasing populations in many Asian countries. There are supply-side uncertainties on the horizon.

...Like other emerging economies, India needs adequate supplies of energy at affordable prices to meet the demand of its rapidly growing economy. Hydrocarbons will continue to be our major source of energy for quite sometime in the future. Most of our requirement of hydrocarbons is met through imports....We also seek to work together with other countries especially those which are active in the oil and gas space


Oil and gas today are not seen merely as commodities to be traded freely. They are often used by countries to meet their political objectives.
Hit the jump for to read the PM's inaugural address in its entirety.

[Source: Prime Minister of India]


PM's Inaugural address at Petrotech-2010

"I am happy to participate in the inaugural function of Petrotech 2010. This is the ninth conference in the series of Petrotech conferences and I am told that more than 4000 delegates from 50 countries are participating in this event. I extend a very warm welcome to all of them.

The Petrotech conferences provide a forum for discussion dialogue and exchange of views and ideas on a subject of very critical importance to the world community as a whole. Over the years, they have become a leading platform for interaction on issues and possible strategies in the global hydrocarbon industry. They have also served as a movement to unite India's upstream, midstream and downstream sectors to work towards securing India's energy needs and requirements. They have come up with several useful ideas and recommendations. To give an example, Petrotech 2001 resulted in the document "India Hydrocarbon Vision" a 20 year roadmap for the country in the area of hydrocarbons. I congratulate the Ministry of Petroleum, Petrotech Society, Oil & Natural Gas Commission and Indian Oil Corporation for organizing these conferences.

The theme of this year's conference is both very important, challenging and interesting. The concept of a Global Energy Equilibirium suggests a matching of demand and supply of hydrocarbons in a manner which is optimum. But apart from the difficulty of defining what an optimum balance would exactly mean, there are many other factors which have a bearing on how different countries meet their hydrocarbon demand. Oil and gas today are not seen merely as commodities to be traded freely. They are often used by countries to meet their political objectives. More importantly, we have to take into account the changing pattern of growth in the demand for oil. In the last two decades or so, Asia's share in the growth in demand for hydrocarbons has risen substantially while that of the OECD countries and the European Union has declined. This shift has been caused by high rates of economic growth and increasing populations in many Asian countries. There are supply-side uncertainties on the horizon. Many mature fields are declining in production. Some energy endowed countries have problems in augmenting production because of various reasons, including lack of the required technology and sometimes political uncertainty. Another challenge that faces all the countries of the world today is one arising out of the challenges of climate change. Because of this challenge, the demand on energy technologies goes beyond productivity and efficiency isuses. The emerging energy technologies have to be adequately equipped to manage carbon emissions. We also need a rethink on the traditional energy basket which is presently loaded in favour of fossil fuels. I am sure that such important issues will be considered in the deliberations in your conference to the benefit of the participants and their countries.

The challenges faced by most of the emerging economies today are similar. Their domestic sources are often inadequate to meet their growing demand for energy. And developing domestic sources involves huge capital investment. Like other emerging economies, India needs adequate supplies of energy at affordable prices to meet the demand of its rapidly growing economy. Hydrocarbons will continue to be our major source of energy for quite sometime in the future. Most of our requirement of hydrocarbons is met through imports. In India, the demand over the next 10 years will increase by over 40 percent whereas the increase in the supply from the maturing oil-fields is expected to be around 12 per cent. The Indian Government is therefore encouraging national oil companies to pursue equity oil and gas opportunities overseas. For these reasons, we seek to build strong economic partnerships with other producing countries and their oil and gas industries to the mutual benefit of each other. We also seek to work together with other countries especially those which are active in the oil and gas space to tackle the problem of climate change. I would suggest the participants of Petrotech-2010 to explore the possibility of an association of oil and gas companies to deliberate upon such issues of shared interest.

I understand that Petrotech 2010 is being organized as a carbon neutral event. I compliment the organizers for setting an example on a contemporary issue of great global importance. I am also told that our national oil corporations have invested heavily in a number of Clean Development Mechanism (CDM) projects. This will help our Government's efforts to build a greener economy.

I am sure that diverse spectrum of knowledge and experience in the field of energy exploration and production which the participants bring to this conference will result in new ideas that would help in our collective pursuit of energy security. With these words, I wish the deliberations of Petrotech 2010 all success."


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  • 24 Comments
      • 4 Years Ago
      These economies are in the early stages of decoupling their currencies from the recently battered G7 nations currencies. http://www.apnilist.com
      • 4 Years Ago
      These economies are in the early stages of decoupling their currencies from the recently battered G7 nations currencies.
      Pakistani Classified
      • 4 Years Ago
      There are lots of reasons that the Peak everything ideology is being pushed at us lately. If you look to the World currency markets and how they are fluctuating in relation to what the current (spot) demand/price is of recently scarce resources (scarse grains), then you know what is coming.

      Look at the ratio of certain regions as it relates to population/ demand/ access/ in affording the basic necessities and commodities of non renewable resources(metals/oil). These economies are in the early stages of decoupling their currencies from the recently battered G7 nations currencies. Emerging markets are looking to diversify from the fiat currencies, of anemic low growth Nations, and looking to purchase commodities that are becoming ever shorter in supply. Emerging markets are in the rush to secure their own supplies in fostering their own national population expansion and standard of living.
      • 4 Years Ago
      Anyone interested in law of unintended consequences should read about Singh and the economic problems he solved as finance minister in the 90s.

      The 1st Gulf war bankrupted India's foreign exchange reserves and pushed her to liberalize the socialist economy. The growth we see this decade is a consequence of that. China ofcourse started the liberalization a decade earlier and we see where they are now.

      Anyone who thinks Peak Oil can be "solved" by getting oil from tar sands of deep ocean or worse bio-diesel should carefully study their economies.
      • 4 Years Ago
      If this is what India is seeing, just imagine what China will see, if they continue this boom they've been in ( of course they will probably not be honest about it.. ).

      The world's economy depends on oil right now. There's no better time than now to go electric and focus on renewable energy.
        • 4 Years Ago
        Even if China does not telegraph its actions (and announcements from China are hard to interpret), the proposals for electrifying China's increasing automotive sector does at least imply that China is thinking about the future and reducing its dependence on foreign oil. We shall have to wait and see if it has success.
      • 4 Years Ago
      Get in line to get your EV / Prius / fuel-efficient compact car now if you can afford it and dump your gas guzzler while it still has some value.

      Remember what happened when gas prices went over $4/gallon? We will be seeing that again in the next couple years...
        • 4 Years Ago
        $4/gallon = $1.05/liter = 0.73€/liter. Bah! Gasoline already costs twice that here. You will probably see $8/gallon soon enough, and at that point you are only at European gasoline price levels. It doesn't slow us from using ICE cars one bit. Maybe after it hits the $16/gallon it starts to hurt.

        I don't think gas price is something that will sell EV:s. It will be the low maintenance costs, high power, silent driving and comfort to "refuel" in your own garage.
        • 4 Years Ago
        Oil hit $85/barrel today. In 3 to 5 years, that is going to look like a bargain.
      • 4 Years Ago
      So why isn't the price of oil going through the roof? Obviously:
      [current oil production] minus [long-term contracts] and [futures contracts] that have both come due
      leaves enough oil on the spot market so that the price is "only" $85.

      Who's pumping up supply to meet demand?
      • 4 Years Ago
      LOL. Good luck with that because the liquid hydrocarbon fuels just don't exist for that kind of increase in demand.

      But I guess the good news is that he apparently sees that there is a problem here. So kudos to him for seeing the problem and talking about it.
      • 4 Years Ago
      LULZ @ any ten year prediction. Just because you have to move more people more miles doesn't mean hydrocarbons will be doing the moving dude.
      • 4 Years Ago
      "...supply from the world's maturing oifileds is only expected to grow by 12 percent"

      Not going to happen. The question is how much oil production will go down.
        • 4 Years Ago
        And how much the price will go up such that this equation balances out:
        [diminished supply] == [demand at high cost]
      • 4 Years Ago
      I definitely see another big war over resources in our time.
        • 4 Years Ago
        I plan to live another 40 years or so. The world will be a very different place by the time I die. I'm excited, and a bit scared, to see how it all plays out.
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