India is now planning Crude Oil Storage at the US Strategic Petroleum Reserve (SPR). This storage of crude oil will not only be used in an emergency, but it can also be used to take advantage of the price… On Sunday, an official told about this. In this regard, an agreement has also been signed between the two countries on 17 July. The official said that this is a very good concept, but it also has many types of riders.
Why did India take this decision?
The first thing in this is that India will have to pay the Crude Oil Storage Cost to keep the oil in the American crude reserve. This expenditure will be in addition to the price of crude oil in the international market. There is also an option that India prepare its own strategy storage at its level. But, it will take capital on a large scale and it will also take a few years to be ready. In such a situation, India has decided to store crude oil in America, so that it can work quickly.
How will India benefit from this?
In the US, the Strategic Petroleum Reserve has been created by private companies and they also take care of it. India can use this crude stored in America for its own use. At the same time, it can also be used to take advantage of the price of crude oil in the international market. But, there will also be a risk of loss due to the fall in the price of crude oil.
Agreement signed between the two countries
In one of its reports, Livemint wrote to an official that this commercial deal is being prepared in such a way that even after the reduction in demand, the oil companies can get support in production. After the signing of this agreement on July 17, India is now considering strategic storage possibilities in the cities of Texas and Louisiana in the US.
How much crude oil is stored in India?
The total capacity of storing crude in the US is 714 million barrels, while reserves are there all over the world. In comparison, only 5.33 million tonnes, or about 38 million barrels of crude oil, is stored in India. This storage is done under the ground at three places in the country. According to an estimate, it can only meet 9.5 days of consumption in India. The International Energy Agency suggests to its member countries that they keep petroleum reserves for at least 90 days of consumption.