India Monitors Global Energy Situation Amidst Crises - Puri

New Delhi, Nov 1 (PTI) India, the world's third-biggest energy consumer, is closely monitoring the evolving energy situation amid geopolitical crises and is hopeful of navigating, Oil Minister Hardeep Singh Puri said on Wednesday.

India, which is more than 85 per cent dependent on imports to meet its oil needs, is diversifying its supply sources and is investing in alternate energy sources such as biogas and biofuels as well as in energy transition.

"There is some concern today because of the geopolitical uncertainty, you know, supply chains could get affected," he said. "All those who are involved in this will realize what is at stake... hopefully ensure that the situation is not exacerbated.

The comment was in reference to the widening Israel-Hamas conflict in the Middle-East and the ongoing Russia-Ukraine war.

"We are monitoring the availability very carefully. We are diversifying our energy sources. It's always good news when more energy comes onto the market. And if you ask me, What is my overall assessment, I'll say fingers crossed, but I think we will be able to navigate in the journey ahead as we have been able to navigate the past," he said.

Speaking at the 'The Energy Transition Dialogue 2023', Puri said the country has been able to navigate through difficult times, ensuring availability and affordability of energy for its citizens as well as making the transition away from fossil fuels.

The world, he said, is facing a supply management problem as two of the most influential members of the oil producers cartel OPEC-plus decided to take 5 million barrels per day of oil production out of the market.

"There is no shortage of energy in the world. No shortage of oil (but) if you play the price too high, you will have a repeat of what happened in 2008," he said. "You don't want to make it so high that the demand collapses and you also don't want to keep the prices so low that you don't get the return on the oil.

Consuming nations want reasonable prices. And if the prices are high, it will impact global economies.

"There are conflicts in certain parts of the world which are very directly and intimately related to the energy supply routes. So you have to be very cautious," he said. "My own view is that it is in everyone's interest that you allow healthy recovery of the global economy."

Crude oil price of USD 86 per barrel prevailing currently is "too high," he said adding if producers limit the amount of oil that is available in the market, the price will go up.

"If you take decisions which are not thought through, then you are facing what is called the law of unintended consequences. You set out to do something and you ended up doing something else," he said referring the European Union's decision to boycott Russian oil post Moscow's invasion of Ukraine.

India consumed about 5 million barrels of crude oil per day and will account for a quarter of the global demand growth till 2045.