Oil minister allays fears over Russian crude oil supply

Days after the U.S imposed new sanctions on two Russian oil firms effectively making Indian refiners sourcing crude look beyond them, Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Tuesday asserted there is enough global crude oil supply.

“Even if one supply goes down you got alternatives elsewhere,” he said, without mentioning names or getting into specifics, while also pointing out to how the global oil trade is not governed by any established set of rules such as GATT.

Mr. Puri, who was participating in a fireside chat at the 28th Energy Technology Meet that got underway here, sought to highlight how the Indian oil refiners have diversified basket of suppliers as well as export markets over the years. From 27, the number of countries from which India imports crude oil has gone up to 40. Indian oil companies export refined products to as many as 50 countries valued at $45 billion, he said.

During the chat, centered around refining, especially the likely impact due to a growing emphasis away from fossil fuels, Mr.Puri said India energy scene looks promising with the refinery sector poised to play a crucial role in India’s economic growth. The refining capacity is set to increase from a little over 258 million tonnes to 310 MT by 2030. “We have plans to take it beyond that… 400 MT,” the Minister declared.

Underscoring how India’s growth and demographics are set to drive demand, he said such a situation prevails even as globally 101 of 420 refineries representing nearly 18.4 million barrels per day or about 20% of global capacity are at risk of closure in next 7-10 years. “If your policy framework is properly thought through and support system has everything in place then you find that as you go from start to modest to better build and onwards, the target and objective can become more objective,” Mr. Puri said, while also emphasising on importance of refineries increasingly diversifying into petrochemicals.

“Refineries themselves are part of the global markets today… increasing integrated with petrochemicals [this] enhancing efficiencies,” he told the gathering that included the top leadership of oil companies.

Both from an energy overhaul and energy technology, much is happening in India and refineries are at the heart of the change. A lot more upgradation is on the cards and the strides towards green hydrogen will be an interesting. Oil and gas exploration and production is, however, an area of concern, he said.

On how India continues to depend on imports for certain technologies, the Minister said, “We should try to do whatever we can and not to hesitate to export wherever we can because the idea is not just to do everything 100% as you are producing for the world.’