India: What lies beneath: getting to all that oil and gas

The National Common Minimum Programme of the UPA government is the first document of its kind to devote a separate section to “energy security”. This reflects an increasing recognition that if the overarching national objective is the eradication of poverty within 20 years, it is essential that the economy attain and sustain a GDP growth rate of at least 7-8. This is not feasible unless energy sources are found to fuel such a high rate of growth over such a long period of time.

At present, hydrocarbons — oil and gas — account for about 45 per cent of the national energy basket. Over the next two decades, the share of natural gas in our energy needs is expected to rise from the present level of about 6 per cent to 20 per cent while the contribution of oil and gas together is likely to remain at under just half of our total energy requirements. Therefore, whatever we do about coal or nuclear energy or non-conventional sources of energy or alternative fuels, in substantial measure energy security will continue to be hydrocarbons security.

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