• 4 minutes Why Trump Is Right to Re-Open the Economy
  • 7 minutes Did Trump start the oil price war?
  • 11 minutes Covid-19 logarithmic growth
  • 15 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 18 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 48 mins America’s Corona Tsar, Andrew Fauci, Concedes Covid-19 May Be Just a Bad Flu With a Fatality Rate of 0.1%
  • 8 mins Russia's Rosneft Oil Company announces termination of its activity in Venezuela
  • 6 hours Saudi Arabia Can't Endure $30 Oil For Long
  • 3 hours KSA taking Missiles from ?
  • 5 hours Where's the storage?
  • 8 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 5 hours Western Canadian Select selling for $6.48 bbl. Enbridge charges between $7 to $9 bbl to ship to the GOM refineries.
  • 5 hours Hillary Clinton tweeted a sick Covid joke just to attack Trump
  • 7 hours China extracts record amount of natural gas from Gas Hydrates in South China Sea
  • 9 hours Wait till America opens their Q1 401k Investment Statements and see they have lost 35% of their retirement savings. They can blame the Authoritarian Chinese Communist Party..
  • 10 hours There are 4 major mfg of hydroxychloroquine in the world. China, Germany, India and Israel. Germany and India are hoarding production and blocked exports to the United States. China not shipping any , don't know their policy.
  • 12 hours Oxford Epidemiologist: Here’s Why That Covid-19 Doomsday Model Is Likely Way Off
Alt Text

How Far Will Trump Go To Save U.S. Shale?

Washington is increasingly worried that…

Alt Text

Looming Recession Sparks New Oil Sell Off

Money managers sold some 180…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

India Builds Up Strategic Oil Reserve

India will soon start looking for investors in the second phase of its strategic petroleum reserve, a senior executive of the company managing the reserve told Reuters. The second phase will cost an estimated US$2 billion, and roadshows will begin in October, the chief executive of India Strategic Petroleum Reserves Ltd, H. P. S. Ahuja said.

New Delhi approved earlier this year a project for building two additional strategic petroleum reserve facilities with a total capacity of 6.5 million tons, or 47.65 million barrels. The first phase of the expansion, to have a capacity of 18.33 million barrels (2.5 million tons) was commissioned last week, the executive also said.

India already has two strategic petroleum reserve facilities with a modest capacity: 20.52 million barrels, or 2.8 million tons. The two additional facilities will bring the total to a little over 68 million barrels. To compare, the United States’ strategic petroleum reserve held, as of June this year, 660 million barrels.

India is widely seen as the biggest driver for global oil demand growth due to its expanding middle class, which is pushing fuel consumption higher. Last month, Wood Mac forecast that the country’s demand for crude will rise by 3.5 billion bpd between 2017 and 2035, which will represent a third of global oil demand growth.

Related: OPEC: IMO Rules Will Boost Oil Demand By 400,000 Bpd

Yet India is also heavily dependent on imported crude: it gets more than 80 percent of the oil it consumes from abroad. That’s despite efforts to expand domestic production and the share of Indian producers’ output from fields abroad.

The oil problem is getting increasingly serious: a falling rupee has already swelled the country’s oil bill considerably, and unless prices fall sharply back to about US$65 a barrel for Brent, the government will find itself in a tight spot as higher prices at the pump have already sparked some protests, and over the longer run, threaten its chances of maintaining its robust economic growth rate.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




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