India depends on imports for 75% of its oil needs.

Analysts feel that the demand for oil will

increase further in the future. With the help of facts and figures evaluate the extent of the problem
and future threats that India could face due to excessive dependence on imports. What concrete
steps should India take to become a less oil dependent economy?

In 1973, oil accounted for 46 percent of the world's total energy consumption; by 2005, its share
had declined to 35 percent. But oil remains well ahead of other energy sources: coal meets 25
percent of the world's energy needs, natural gas is next with a market share of 20 percent, and
nuclear power meets 6 percent of the planet's energy needs.

India is one of the largest importers of crude oil. It has a strong domestic market for Petroleum
products. The petroleum industry in India mostly consists of public sector companies such as Oil
and Natural Gas Corporation Limited (ONGC), Hindustan Petroleum Corporation Limited
(HPCL), Indian Petrochemicals Corporation Limited (IPCL), but there are also private sector
players like Reliance Petroleum Limited of Mukesh Ambani's Reliance Industries Limited (RIL).

Recently, oil and natural gas exploration has begun taking place in India. India's oil reserves,
found in Bombay High off the coast of Maharashtra, Gujarat, Rajasthan and in eastern Assam
meet 25% of the country's domestic oil demand.[21][97] India's total proven oil reserves stand at 11
billion barrels,[98] of which Bombay High is believed to hold 6.1 billion barrels[99] and Mangala
Area in Rajasthan an additional 3.6 billion barrels.[100]

Consuming
(1000 (1000 population in
Nation bbl/year per
3 capita
bbl/day) m /day) millions
2006
India 2 2,571.90 408.9 1201 0.8

103bbl/d (2007)
Producing Nation 103bbl/d (2006)
India 854 881

Importing Nation
(103m3/day)
(103bbl/day)
(2006)
India 1,687 268
According to a recent report by the the US Energy Information Administration (EIA), over the
next 20 years US energy demands are predicted to increase by 62% for natural gas, 33% for oil
and 45% for electricity. "America faces a major energy supply crisis over the next two decades."2

"By some estimates, there will be an average of two percent annual growth in global oil demand
over the years ahead, along with, conservatively, a three percent natural decline in production
from existing reserves"..."That means by 2010 we will need on the order of an additional fifty
million barrels a day.

How Much Oil is There?

How Long Will it Last?

Geologists and engineers illustrate the rise, peak and decline of oil. Oil companies and
governments draw a rising graph, not showing peak or decline. Contemporary geological
knowledge, backdated reserve figures and accurate production histories generate convincing
evidence suggesting that the peak of all liquid hydrocarbons comes around 2010.

Economic development and prosperity over the past century has been built on cheap and
abundant oil-based energy. After the production peak, as supplies decline and prices rise, (with
rising populations and continued industrial development the demand for oil will continue to
increase ) the world will have to use less fossil fuel or find alternate sources of energy. Possible
choices include gas, non-conventional oil and gas, nuclear power, hydro-electricity, wind, tide,
solar, geothermal, biomass, hydrogen and over unity energy sources. None of the known
alternatives will be as cheap, convenient or as energy rich as oil.

STEPS

• Renewable energy technologies such as solar power, wind power, micro hydro, biomass
and biofuels might someday be used to replace some of these generators, but today the
primary alternatives remain large scale hydroelectricity, nuclear and coal-fired
generation.
• In the United States, Congress has adopted very aggressive mandates to spur the
development of biofuels, while encouraging the growth in hybrid and eventually electric
vehicles.
• Stop use of vehicles older than 15 years.
• Must not allow any auto manufacturing unit with more than specified unit of automobiles
production.
• Compulsorily have a single day as no vehicles day i.e. no vehicle on road except
emergency services.
• Share the vehicle rather than individually using it.
• Use public transport as far as possible, even when owning a vehicle.
• Farmers must be educated for rain harvesting, so as to lessen the burden of diesel use.
Combined cultivation may be taken as an option.
• On a busy intersection of road, at signals, the duration should be increased and vehicles
should be switched off. === These are practical solutions and within reach of everyone .
It must be followed strictly.