Oil Security and Its Impact on India

Abstract

Oil as a strategic commodity made its mark from the day it was discovered in 1859. We have now become a “Hydrocarbon Society” as Daniel Yergin claims in his book The Prize.1 Climate change, with 97 percent scientific consensus has, however, jolted the status of oil, which the world had taken for granted. Realisation has now dawned on the need to find an alternative for oil because it is the largest emitter of Greenhouse Gases (GHG). Efforts to replace oil with alternative sources have affected energy planning entailing a relook at the energy strategies of nations. Of particular significance is the consumption of energy by air and sea transportation because there is yet no alternative for aviation jet fuel, and ocean shipping, carrying 80 percent of world trade, emits 3 percent of global GHG. In October 2016, 194 countries, including India, signed the Paris Agreement on Climate Change and agreed to make “Nationally Determined Contributions” (NDCs).  Reducing the use of crude oil will make countries self-reliant by making do with domestic production. This will shake the world's balance of power. The transition to a post-fossil fuel age should be smooth, without affecting energy security.