India has proposed building of a strategic oil reserve
by Asian countries, which would help cushion supply
disruptions and a new mechanism to ensure a sustainable
global hydrocarbon economy.
need for maintaining strategic reserves and judicious
inventory management are measures developing countries
in Asia must seriously consider, minister for petroleum
and natural gas Murli Deora said at the first meeting
of energy ministers of India, China, the US, Japan and
South Korea here.
China, the US, Japan and South Korea consume nearly
45.5 per cent of the 3.77 billion tonnes of oil consumed
globally. But rising prices of oil, which is vital for
their energy security, is constraining their economic
high oil prices currently prevailing make oil inventory-carrying
costs prohibitive, particularly for developing countries,"
he said in his keynote address on "Major Challenges
and priorities of International Cooperation."
recognise that achieving sustained economic growth rates
at over eight per cent in the future calls for commensurate
energy availability. India's dependence on import of
oil and gas renders economic progress vulnerable to
international oil market developments. Hence, effective
management of oil security assumes urgency," Deora
has plans to construct tankage with a capacity to store
15 million metric tonnes (MMT) of oil in the long term,
with five MMT of storage capacity expected in the first
phase, he said
The one-day meeting is expected to issue a joint statement,
urging the key oil producing countries to step up their
investment and expand oil supply capacities to ensure
adequate supplies for all.
meeting is also expected to issue a call to the international
community to work together to send a clear signal to
the oil market so as to enhance market transparency
and curb excessive speculation to maintain stability.