Of India’s 5.33 mn tonne of strategic oil reserve capacity, 36% is empty, Pg13

Key Highlights:

• India's Strategic Petroleum Reserves (SPRs) hold 3.37 million tonnes (mt) of crude oil, about 63% of their total 5.33 mt capacity.
• The SPRs are located in Andhra Pradesh and Karnataka, acting as a buffer against short-term supply disruptions.
• Combined with commercial crude oil storage, India has 8.5 mt of crude oil in storage, equivalent to approximately 24 days of crude oil needs.
• India aims to expand its SPR capacity with new facilities in Odisha and Karnataka.

Detailed Insights:

• The concept of SPRs emerged in response to the 1973 oil crisis, with countries like the US, China, and Japan maintaining large reserves.
• ISPRL, a subsidiary of the Oil Industry Development Board, manages India's strategic crude oil storage.
• India's current storage capacity, including commercial stocks, covers about 74 days of crude oil needs, less than the IEA's recommended 90 days.
• As the world's third-largest oil consumer, India relies on imports for over 88% of its crude oil requirements.
• Plans are underway to establish additional reserves in locations like Bikaner and Rajkot, potentially increasing the total SPR capacity by another 6 mt.

Key Concepts Involved:

• Strategic Petroleum Reserve (SPR): Stockpiles of crude oil maintained by countries to safeguard against supply disruptions.
• International Energy Agency (IEA): An autonomous intergovernmental organization that provides policy recommendations, analysis and data on the entire global energy sector.
• ISPRL: Indian Strategic Petroleum Reserves Limited, responsible for building and managing India's strategic crude oil storage facilities.

India's Strategic Oil Reserves