The lessons of past oil crises have not been fully learnt, Pg12

Key Highlights:

• India's Gen Z is experiencing its first energy shortages, reminiscent of past oil crises.
• In the 1970s, oil consumption was 22 MTPA with over half imported, mainly for diesel, kerosene, and furnace oil.
• By 2025, India's oil consumption has increased tenfold to 240 MMTPA, with import dependence near 90%.
• The 1973 Arab-Israeli war and 1979 Iranian Revolution caused crude prices to surge from $1.5/barrel to $35/barrel.
• The Gulf War in 1991 led to a balance-of-payments crisis, triggering economic reforms.
• Current natural gas import dependence is near 55%, with half of India's SLNG imports from Qatar.

Detailed Insights:

• The oil crises of the 1970s prompted India to conserve oil by electrifying railways and agriculture, and by substituting coal for heavy oils in industrial processes.
• Domestic oil discoveries like Mumbai High in the 1980s reduced import dependence, but this was followed by a surge in oil demand and weakening of efficiency standards.
• Policy responses to the 1991 Gulf War focused on securing oil supplies through strategic reserves and overseas acquisitions by ONGC Videsh Limited.
• Gas discoveries in the Krishna-Godavari (KG) basin led to increased gas infrastructure, but current disruptions highlight the fragility of gas import dependence.
• India's high import dependence on both oil and gas makes it vulnerable to supply disruptions and price volatility, impacting industries and public-sector oil marketing companies.
• Achieving energy atmanirbharta requires a renewed focus on conservation, efficiency, and electrification, similar to the strategies employed in the 1970s.

Key Concepts Involved:

• Energy Atmanirbharta: Self-reliance in the energy sector through diversified sources and reduced import dependence.
• SLNG: (Shipped Liquefied Natural Gas) Natural gas that has been converted to liquid form for ease of storage or transport.
• Bridge Fuel: A fuel, such as natural gas, used as a transitional energy source while shifting to renewable energy.