As per the media reports, Crude oil prices in the US went below zero dollars per barrel on Monday. Let me tell you that this has happened for the first time in history. Coronavirus infection due to price drop. Due to Corona, work is stalled in many countries around the world. Crude oil prices are falling on Monday due to over-supply of crude despite the demand being low. India is also planning to create many new oil reserves to take advantage of this. So that they can fill their stock by buying oil at a low cost.
India is one of the largest importers of oil. Let us tell you that India imports 80% of its supplies from outside. At present, crude oil will be deposited in underground rock caves in Odisha and Karnataka. The effort of the Narendra Modi government is that in case of emergency, the stock of crude oil is not exhausted. After the creation of the new underground storage facility, India will have reserves for 22 days. There will be 65 lakh tons of crude oil stored here.
Atal Bihari Vajpayee had an idea
India became almost bankrupt during the Gulf War in the 1990s. At that time oil prices were touching the sky. This created a payment crisis. India had only three weeks of stock left. However, the Manmohan Singh government handled the situation well. The economy came back on track with the policy of liberalisation, privatisation and globalisation. Even after this, fluctuations in the price of oil continued to affect India. To deal with this problem, in 1998, Prime Minister Atal Bihari Vajpayee decided to make underground storage.
The government has entrusted the responsibility of filling these caves to foreign companies. The Abu Dhabi National Oil Company is one of them. But in the event of an emergency, India will be the rightful owner of this oil.