What are strategic reserves of oil? Do we have any plans afoot on this front?
The crude oil prices are again soaring. Rumours of an imminent attack on
What do countries like the
Strategic petroleum reserves ("SPR") refer to crude oil inventories held by the government of a particular country, as well as private industry, for the purpose of providing economic and national security during an energy crisis. According to the United States Energy Information Administration, approximately 4.1 billion barrels of oil are held in strategic reserves, of which 1.4 billion is government-controlled. The remainder is held by private industry. At the moment the US Strategic Petroleum Reserve is one of the largest strategic reserves, with much of the remainder held by the other 25 members of the International Energy Agency. Recently, other non-IEA countries have begun creating their own strategic petroleum reserves, with
According to a March 2001 agreement, all 26 members of the International Energy Agency must have a strategic petroleum reserve equal to 90 days of oil imports for their respective country. Only net-exporter members of the IEA are exempt from the reserve requirement. The exempt countries are
Where do we stand as against the 90 day strategic reserve requirement?
The government has also approved last year a funding mechanism for setting up strategic crude oil storage of 5 MT at various locations. This project is being implemented through a subsidiary of OIDB – Oil Industry Development Board.