03-11-06

Clouds of uncertainty may be hovering over the nuclear deal, but India's ties with the US is speeding along in other areas of energy resources. Washington has offered New Delhi a role in its efforts at framing a response to the volatility in the global oil and gas market, while pushing for upscaling the government framework for co-operation in coal sector.
In a letter to Planning Commission deputy chairman Montek Singh Ahluwalia, US energy secretary Samuel W. Bodman has sought India's partnership in its efforts to study and analyse the present situation in the global oil and gas markets in the light of "growing world demand". Washington has commissioned US National Petroleum Council, a Federally-chartered advisory body, for the task.

"Your country's participation would enhance the quality and credibility of the council's findings and recommendations," Bodman wrote to Ahluwalia. The council has set up groups to examine global issues pertaining to demand, supply, technology and geopolitics andpolicy.
The invitation is a recognition of India's role in Asian and the world oil market. India is among the major oil consumers in the world and is driving global demand along with China. Together, the four Asian economies -- China, Japan, South Korea and India -- consume over 22 mm bpd. India alone is expected to consume 5 mm bpd of crude by 2020.

Since the country imports 70 % of its crude, the oil minister Mani Shankar Aiyar had launched a drive to acquire oilfields abroad to secure energy supplies. He had brought together Asian buyers and West and North Asian suppliers, including Russia, on a common platform under the aegis of two Round Tables for formulating an equitable and sustainable growth policy.
The US is also pushing for a coal business council under the framework of US-India energy dialogue. It is envisaged to provide guidance on resolving issues in the sector.