India and IEA Discuss Emergency Oil Stocks to Improve Global Energy Security; Set up Regular Information Exchange
(New Delhi/Paris) — 22 January 2004
The Ministry of Petroleum and Natural Gas, Government of India and the International Energy Agency (IEA) organized a workshop on 21-22 January 2004 in New Delhi, to discuss oil emergency response policies and measures, in particular the role of strategic stocks in oil crisis management. Shri Ram Naik, Hon’ble Minister of Petroleum and Natural Gas, Government of India inaugurated the Workshop and was joined by Shri B. K. Chaturvedi, Secretary, Ministry of Petroleum and Natural Gas and more than 30 other senior officials and experts from the Government and industry. Ambassador William C. Ramsay headed the IEA delegation, which was composed of 20 experts from IEA Member countries and the IEA’s Industry Advisory Board.
Shri Ram Naik, Hon’ble Minister of Petroleum and Natural Gas, Government of India informed the participants in the workshop about the recent decision of the Government of India to establish a strategic crude oil reserve of 5 million metric tonnes. He emphasized the need for mutual cooperation between India and IEA on the subject of energy security. The discussions during the workshop focused on different models available globally on various aspects of strategic oil reserve viz. stock-holding legislation, administrative organisation, financial mechanisms, etc.
After an exchange of views and sharing of experiences on oil security from both sides, the following areas were identified for further cooperation between the Ministry of Petroleum & Natural Gas, Government of India and IEA :
- to regularly exchange information, including oil statistics, for enhancing market transparency and building a common view of the global oil market;
- to establish a hotline for effective information sharing in case of an emergency;
- to update and consult, as appropriate, on the development of energy security measures;
- to enhance the exchange of experience which would contribute to collective long-term energy security, including the promotion of energy diversification and improvement of energy efficiency; and
- to reinforce channels opened by this workshop through various activities.
This Workshop marked a significant step in the direction of India – IEA co-operation on the subject of energy security.