• 39 mins US Orion To Develop Gas Field In Iraq
  • 3 days U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 3 days Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 3 days Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 3 days Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 3 days Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 3 days TransCanada Boasts Long-Term Commitments For Keystone XL
  • 3 days Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 3 days Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 4 days Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 4 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 4 days Venezuelan Output Drops To 28-Year Low In 2017
  • 4 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 4 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 4 days Kinder Morgan Delays Trans Mountain Launch Again
  • 4 days Shell Inks Another Solar Deal
  • 5 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 5 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 5 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 5 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 5 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 5 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 5 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 5 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 5 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 6 days Norway Grants Record 75 New Offshore Exploration Leases
  • 6 days China’s Growing Appetite For Renewables
  • 6 days Chevron To Resume Drilling In Kurdistan
  • 6 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 6 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 6 days Nigeria Among Worst Performers In Electricity Supply
  • 6 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 7 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 7 days Saudis To Award Nuclear Power Contracts In December
  • 7 days Shell Approves Its First North Sea Oil Project In Six Years
  • 7 days China Unlikely To Maintain Record Oil Product Exports
  • 7 days Australia Solar Power Additions Hit Record In 2017
  • 7 days Morocco Prepares $4.6B Gas Project Tender
  • 7 days Iranian Oil Tanker Sinks After Second Explosion
  • 10 days Russia To Discuss Possible Exit From OPEC Deal

Breaking News:

US Orion To Develop Gas Field In Iraq

Alt Text

Is This The End Of Nuclear Power In The UK?

The UK has been planning…

Alt Text

Nuclear Power's Resurgence In The Middle East

While nuclear power loses popularity…

Global Risk Insights

Global Risk Insights

GlobalRiskInsights.com provides the web’s best political risk analysis for businesses and investors. Our contributors are some of the brightest minds in economics, politics, finance, and…

More Info

Tensions Between India And Pakistan May Rise Over Nuclear Deal

India Nuclear Power

Nuclear Suppliers Group backgrounder

At the recent visit of India’s Prime Minister Narendra Modi to the U.S. in May 2016, the closer relationship between the U.S. and India was clear. A logical step forward was further seen when U.S. President Obama stated his approval for India to join the Nuclear Suppliers Group (NSG). While this would be a great move for overall worldwide security and nuclear non-proliferation, there is a danger of greater tensions between India and Pakistan.

As an international group with a current membership of 48 countries, the NSG seeks to control the export and transport of nuclear materials, equipment and technology in an effort to prevent nuclear proliferation. It sets global rules for international trade in nuclear energy technology. Only NSG members are allowed to transport the material.

Any non-members face huge restrictions on their use and transport of nuclear material. This explains why Iran, a non-member, received sanctions and resultant controversy over its nuclear programme prior to the recent nuclear deal. Ironically, the NSG was first founded in 1974 in the wake of India’s nuclear test and first met in November 1975.

In effect, the NSG is a body to control the global nuclear industry. Significant members include the USA, Russia, the UK, Japan, Germany, France, South Korea and China. These are all states which have nuclear weapons or have a significant history with nuclear weapons as well as Cold War tensions associated with them. Ultimately the NSG is another potential body, along with the UN, NATO and the European Union, which can help to maintain peace and solve international disputes. Related: Long Term Outlook For Canadian Oil Sands Looks Bright

Indo-Pakistani nuclear troubles

India’s joining the NSG is significant because of its past history with nuclear weapons and the consequential tensions with its neighbour and rival Pakistan. India’s first successful nuclear weapons test in 1974 was met with alarm in the international community. The NSG’s formation soon afterward reflected this alarm.

Tensions with Pakistan logically increased again and it is arguably because of India developing nuclear technology that Pakistan decided to pursue that technology as well. This animosity resulted in the two countries’ first successful nuclear weapons test in 1998. The Cold War theme of mutually assured destruction and the nuclear arms race seen between the U.S. and the Soviet Union was effectively played out again on a smaller scale.

Fears of nuclear war between India and Pakistan were high and it is still feasible in the present day. India’s joining the NSG will therefore be a positive move towards potentially stopping that. What will likely happen, and is already happening to some extent, is a closer relationship between the USA and India, economically and politically.

This will probably result in India moving further into the U.S. sphere of influence. The expansion of India’s nuclear industry is also possible and would be a strong move to meeting the energy needs of a growing population. This is relevant in a country where consistent electricity with no power cuts is still a luxury. Overall it would be a positive development.

However, the wider implications of India’s initiation into the NSG are less positive. Ultimately it has isolated Pakistan and put an end to any future talks between Pakistan and India, at least for now. This move could also push Pakistan closer to China, India’s current economic, and in some cases, political rival. Related: Giant Helium Find May Spell Trouble For Tanzania

The USA’s reluctance to let Pakistan into the NSG as well, which Pakistan is now requesting, shows the underlying suspicions and mistrust of Pakistan. This stems from Pakistan’s past history with groups such as the Taliban and figures such as Osama bin Laden. It’s also a result of long-running issues in Pakistan such as corruption and the power of the military.

For India, Pakistan’s history with nuclear technology is a source of concern given unconfirmed rumors that the head of Pakistan’s nuclear programme sold secrets to Iran and North Korea. Overall, if India’s ascension to the NSG is confirmed, then it would move closer to the West. This would happen simultaneously with Pakistan’s closer alignment with China and nuclear weapons-based tensions could reemerge on the subcontinent.

In conclusion, the U.S. support of India joining the NSG is a story which has not been publicised much, but is one which could be extremely significant for the U.S., India, Pakistan, China, and the Middle East region as well. The Cold War may have ended more than 20 years ago, but its legacy remains. From an economic perspective, India’s NSG ascension would continue the trend under Modi of making India much more attractive to international investment.

By Rayhan Chouglay via Global Risk Insights

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News