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Here Is Indias Oil Reserves: India Had Built Safe Havens By Taking Lessons From The 1990 Gulf War, Know Everything Related To Them Thing

After the Organization of the Oil Exporting Countries (OPEC) did not increase crude oil production, India, America, China, Japan, South Korea and Britain have made a historic decision to open their strategic reserve reserves.

America has announced to extract 50 million, India 55 lakh and Japan 42 lakh barrels of oil. In 1990, due to the Gulf War, there was a big fall in India’s foreign exchange reserves due to a sharp jump in the prices of crude oil in the international market. Then we were left with only three weeks of import money.

In view of the future crisis of oil, the then Atal Bihari Vajpayee government had suggested to build reserves in 1998. Many people in the world have probably heard about the strategic reserve of oil for the first time.

Why are strategic oil reserves created?
Strategic petroleum reserves are created to deal with natural disasters, war, and unexpected disruptions in supply.

Preparation in America since the 70s
The US Strategic Petroleum Reserve holds 600 million barrels of oil in underground caves in Texas and Louisiana. It was built in the 1970s for emergencies. But in the past years, the equations of the global oil industry changed in such a way that now the US exports more oil than it imports.

However, there is a fixed limit for one-time release of oil from the reserve. In the past, the US government has removed up to one million barrels per day. Accordingly, 50 million barrels of oil can last for two months.

where is our stock kept
India has 38 million barrels of crude oil as emergency reserves in underground caverns built at three places on the eastern and western coasts. These reserves are located at Visakhapatnam in Andhra Pradesh, Mangaluru and Padur in Karnataka. In 2018, the Narendra Modi government has approved the creation of Phase II reserves at Chandikhol in Odisha and Padur in Karnataka.

Why storage in caves
Crude oil is stored under the ground in stone caves. These are considered the safest for hydrocarbon deposits.

Oil can be kept equal to 90 days’ import
According to the Agreement on the International Energy Program (IEA), each IEA member country has an obligation to maintain an emergency oil stock equivalent to at least 90 days’ worth of oil imports. In the year 2020, India had increased its strategic reserves in view of the fall in crude oil prices.

India imports 83 per cent of its crude oil needs and is dependent on Gulf countries for this. At present, India can meet its petroleum requirements of 13 days from strategic reserves.

Price drop due to the announcement of opening of emergency stores
Crude oil prices fell on Wednesday after the announcement of emergency oil reserves opening.

What next…. OPEC countries will increase production?

OPEC allies will meet in a week to increase oil production or the current situation. Earlier this month, Biden expressed hope that Saudi Arabia-led OPEC countries would agree to increase production. In such a situation, due to the opening of reserve reserves by India, America, China and other countries, 70 to 80 million barrels of oil will come in the market.

Will petrol and diesel be cheaper?
People want to know whether they will get cheaper petrol and diesel due to the government’s decision to remove reserve oil. But many factors are responsible behind this. Refineries make advance purchase of crude oil. In such a situation, they are currently refining expensive oil.

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