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Open up the oil market Should petrol and diesel be brought under GST? India’s Gas Scenario Unjust enrichment or scam? The dooms day of crude oil The great oil subsidy riddle Why have we failed? Will OPEC succeed in increasing price? ‘Kaliyuga’ of climate change preventable Does India need a giant integrated PSU oil company? Little effort to exploit rich reserves Old wine in old bottle Moily and his magic wand... OVL records highest ever profit
 
Moily and his magic wand...
Can India set the goal of achieving oil sufficiency like the US has been setting?
EVEN THOUGH IT is one of those unachievable dreams (like eliminating corruption from politics), setting such an ambitious goal for India can be understood. However, to announce that India will achieve oil sufficiency by 2020 is to mislead the country.

Oil marketing companies (OMCs) are bleeding because of unsustainable petro product subsidies. Their financial situation is worsening by the day. A day will come when they may not be able to import oil. Production in the Krishna-Godavari Basin has been declining from a high of 62 million cubic metres per day (mmscmd) in 2010 to the current level of 37 mmscmd of gas and has been predicted to fall to 23 mmscmd in 2013-14. There is even some apprehension that Reliance may be reducing production intentionally to get higher prices.  

Pipelines are pipe dreams...

Despite all the planning to import gas for the last 25 years, gas pipelines have remained pipe dreams. Oil production has remained stagnant. Gas production has started to decline. Multinational oil companies are showing little or no interest to invest in India. When Petroleum Minister Veerappa Moily should strive to find solutions to the worsening energy crisis, should he give a rosy picture on India’s oil production potential? Energy security should be his goal and not going after the mirage of oil sufficiency by 2020. 

First, on 11 November, Moily announced in Mangalore that his ministry is planning to reduce oil imports from the current level of 80 per cent by 30 to 40 per cent within the next five years in a phased manner. He went one step ahead and announced in Mysore on 25 November that India will achieve oil sufficiency by 2020.  
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