Import lobbies derailing India's oil exploration: Veerappa Moily

Discussion in 'Economy & Infrastructure' started by Ray, Jun 15, 2013.

  1. Ray

    Ray The Chairman Defence Professionals Moderator

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    Import lobbies derailing India's oil exploration: Veerappa Moily

    NEW DELHI: Petroleum minister M Veerappa Moily on Friday claimed that India's energy exploration activities are being derailed by "threats" to ministers from the import lobbies, which want the country to remain dependent on oil and gas imports, and "bureaucratic obstructions".

    "Every minister who is occupying this (petroleum) position is threatened. There is bureaucratic delay and obstructions and also other lobbies that don't want us to stop imports," Moily told reporters here.

    However, "Moily cannot be threatened," said the minister. He said the country is "floating on a sea of oil and gas and we're not exploring it" because of the "threats and obstructions".

    Data show that after nine rounds of activity under the government's new exploration licensing policy (NELP), about 80 per cent area is yet to be explored extensively.

    If the imports continued in the current manner, the country would be staring in the face of importing nearly 100 per cent of its oil and gas requirements, said Moily.

    "The decision making process is obstructed, aborted, while this work of the import lobbies will work out to the detriment of the country. All our earnings are going out (for oil imports). This cannot go on, it has to come to a stop," Moily said.

    Pointing out that low investor sentiment in the last 4-5 years has been a dampener for increased exploration activity, Moily underlined the need for properly compensating producers.

    "We have to give the right price (contractual)," the petroleum minister said. He said that such high level of import dependence meant that the country was always challenged by the vagaries of international prices, compounded by factors like rupee depreciation against the dollar.

    Moily said he has proposed to the Cabinet committee on economic affairs (CCEA) to increase domestically produced gas prices from current $4.2 per million British thermal unit to $6.7 mbtu.

    He has been under attack from CPI leader Gurudas Dasgupta for proposing to hike natural gas prices by 60 per cent.

    'First-class liar'

    Reacting to the petroleum minister's comments, Dasgupta was quoted as saying: "He is a first-class liar. Moily should go to court."

    Earlier this week, Dasgupta told a leading daily that while the benefit of enhanced gas prices that accrue to the state-run companies ultimately flow back to the government in the form of increased share in the fuel subsidy sharing mechanism, dividends and profits, corporates themselves pocket the enhanced super profits.

    The BJP on Friday termed as "shocking disclosure" the remarks of petroleum minister, while the CPM demanded a reversal of government policies concerning oil supply.

    The Congress said it was for Moily to explain his remarks.

    Bharatiya Janata Party spokesperson Nirmala Sitaraman said the shocking disclosure by the oil minister vindicates her party's stance.

    She said Moily was the fourth petroleum minister under the UPA government to hold the petroleum portfolio while the ministry had been handled by a single minister during the National Democratic Alliance government.

    "They are changing ministers. Very clearly, there is no transparency in decision making. There is no policy. What Mr Moily had said vindicates what we have been saying," Sitaraman told IANS.

    "Many skeletons have come out of cupboard of UPA," she added.

    CPM leader Basudeb Acharia said the government should explain why it had not resisted pressure from oil lobbies. He said Moliy's remark about oil lobbies was "a fact" and India's import of petroleum products has been steadily rising while share of domestic production going down.

    "Why government cannot come out of pressure. Why government always surrenders before the oil lobby," he asked. "The government's policy should be reversed," he said.

    Congress spokesperson Shakeel Ahmed said it was for Moily to explain his remarks. "Who is trying to influence his decision, it is for Mr Moily to explain," Ahmed said.

    Import lobbies derailing India's oil exploration: Veerappa Moily - The Times of India

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    Who are in this import lobby?

    Or is he batting for the Ambanis?
     
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  3. pmaitra

    pmaitra Moderator Moderator

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    Look at the positive side. Let us keep our deposits, assuming we do have quite a few, and keep importing. At crunch time, we can lay our hands on what we have. Let us keep importing now.
     
  4. Singh

    Singh Phat Cat Administrator

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    @pmaitra

    Few arguments against
    1. Rupee is at its weakest ever. Oil prices are increasing. Massive burden on the treasury.
    2. Peak Oil point has been/is about to be reached. Dependence on Oil has to come down, not the right time to go about exploiting your reserves.
    3. Gas is the next big thing. Exhaust Oil reserves, capitalize on gas.
     
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  5. natarajan

    natarajan Senior Member Senior Member

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    may be he was ambushed by journalists
     
  6. pmaitra

    pmaitra Moderator Moderator

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    You are right.

    The question is, is exploiting our oil (assuming we have enough) the only solution? Perhaps we should do away with subsidies altogether? And then start controlled exploitation, is reserves are found.
     
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  7. Singh

    Singh Phat Cat Administrator

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    What subsidies ?
    There is a 100%+ tax on Oil.
     
  8. pmaitra

    pmaitra Moderator Moderator

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    I meant diesel. Keep the tax, take away the subsidy.
     
  9. Singh

    Singh Phat Cat Administrator

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    Govt has already decided to do away with Diesel subsidy, it'll be slowly phased out.

    Informative Read : Petrol and diesel pricing | Pragmatic Euphony
     
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  10. pmaitra

    pmaitra Moderator Moderator

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    That is a good trend. I am not suggesting a shock effect, but there should be a gradual removal of diesel subsidies. Petrol and diesel are both products of fractional distillation, that we do on the crude we import. At one point diesel subsidies made sense when only goods vehicles used them, and kept the prices of goods under control, but today, with proliferation of small cars that use diesel, I don't think this makes as much sense any more.
     
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  11. Abhijeet Dey

    Abhijeet Dey Regular Member

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    India should look into shale gas technology and biodiesel (from Jatropha Plantations). These import lobbies should be named by the media and hanged to death in front of the mob. :gun: :Cry:
     
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  12. SLASH

    SLASH Senior Member Senior Member

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    Kutch region is supposed to have a huge reserve both on shore and offshore.
     
  13. anoop_mig25

    anoop_mig25 Senior Member Senior Member

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    he is faking how can Petroleum minister would be very threaten by those lobbies.He should file case in CBI against those lobbies instead of going public.

    But we wont file case in CBI.Hew knows how pathetic is CBI
     
  14. Yusuf

    Yusuf GUARDIAN Administrator

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    When all the oil majors are PSUs, how can there be a lobby against the govt? Does the oil majors buy from middlemen paying huge commissions or buy directly from the oil producers?
     
  15. TrueSpirit

    TrueSpirit Senior Member Senior Member

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    Forget It....Trace my IP if you can
    In fact, we can also start exploring feasibility of shale oil in India. It has done wonders for US.

    Here's a study paper relevant to India, China & Pak. http://www.eia.gov/analysis/studies/...?zscb=49521155

    One was shared by @Austin, as well.

    Technically Recoverable Shale Oil and Shale Gas Resources: An Assessment of 137 Shale Formations in 41 Countries Outside the United States

    Analysis & Projections - U.S. Energy Information Administration (EIA) - U.S. Energy Information Administration (EIA)
     
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  16. Austin

    Austin Regular Member

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    Shale seems to be a tough challenge for India as people here depend on ground water for drinking and other activities in a major way.

    There are reports that the chemical used for extracting Shale Gas has the tendency to contaminate ground water. Shale also involves huge amount of water to extract the gas.

    So shale revolution in India is unlikely ......also Shale companies has been loss making for quite a few years so it would be interesting to see if Shale turns out to be a bubble that could break in few years.
     
  17. A chauhan

    A chauhan "अहिंसा परमो धर्मः धर्म हिंसा तथैव च: l" Senior Member

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    We should start to think about the alternatives, Petroleum price increase is not going to stop here, yes we need a research on Jatropha, this technology needs refinements.
     
  18. TrueSpirit

    TrueSpirit Senior Member Senior Member

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    Forget It....Trace my IP if you can
    Yeah, there are enough options, it just that the companies who are already in their comfort zone (making good money out of a legacy investment) form lobbies & dictate policy, so focus on non-conventional sources is just a matter of political will, nothing else.
     

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