Article written by Dr Ajay Kumar chairman and Managing director of fox petroleum group.
The Oil and Gas Industry: Stable or Unpredictable? Trying hard to get some wings. Because walking is prohibited under the ambit of law, due to COVID-19 pandemic. Why I am saying this becoz, refined petroleum prices are going up despite Crude Oil at its best low.
The energy industry is going through a period of uncertainty that is characterized by extreme price volatility and by the gloomy short-term prospect of the global economy. But the current situation doesn’t alter fundamentally the basic drivers of our industry: oil and gas demand will continue to rise; supply is structurally tight, energy prices have no reason to remain low. We are facing two major challenges: energy transition and climate change.
To maintain an adequate balance between supply and demand, it is both the oil producing countries and the International Oil Companies (IOCs’) responsibility to increase production on demand and delivery based. International Oil Companies (IOCs’) can offer their investment capacity and their ability to manage large projects supported by cutting edge technologies. India lacks it since independence. India never had a good and innovative petroleum ministry.
Looking at the frontier domains such as ultra-deep offshore, extra-heavy oils, complex gas reservoirs or LNG will account for a growing share of International Oil Companies (IOCs’) production, as India lacks LNG infrastructure and government denouncing Industrialist with investment and new idea has also created big problems, which will grow further severely and badly. However meeting energy demand primarily requires better access to reserves. The key lies in the hands of host countries, but they have to be convinced that hydrocarbon projects really bring a positive contribution to local development and meet with their local needs and expectations.
Investing more in new hydrocarbon production capacities will not be sufficient. We also need to save energy and to develop other energy sources. Let’s not see hydrocarbons and renewables as mutually exclusive fuels. All energy sources are required to meet demand in a sustainable manner. Let’s not regard oil and gas production as conflicting with tackling climate change. Fossil fuels will still remain a major energy source for several decades but at the same time, the climate issue is a critical global challenge and we have to reconcile these targets by developing more energy efficient products and economically viable capture and storage solutions. Consumer and producing countries should have a broader and more open dialogue with each other about these critical issues.
The problem is cumulative. Indian economy down since 2017, and COVID-19 pandemic has erased economy like, never before. And Government killed businessman from supporting sectors of revenue generation willingly. That is creating major problem. It has taken India to the era of 2000. Those who are joking on questioning government of their past misdeeds for downing the economy, will never see smiling face in the mirror in their own home.
We can’t blame the Prime Minister of India Shri Narendra Modi for growing oil prices. Last day also, so many news channels showing with grave concern about the increasing oil price at pumps. Due to COVID-19 pandemic, other source of income and revenue generation is almost stagnant. Major cut down in tax collection may hammer government functioning. Hence, blaming the government is not ultimate solution. Still, we have solutions, but still the same thing. Is your Prime Minister listen to anyone? Answer is Big No. He has nothing to lose. Industrialist has lost almost everything. Only, God can help, and Indians can solve this problem by smiling – magic has taken away everything, expecting the same for return. Yes. Government of India is now, magicians India.
Dr Ajay Kumar PhD
Chairman Fox Petroleum Group