PM says domestic source of oil supplies inadequate to meet growing energy

New Delhi, Nov 1 (ANI): The Prime Minister, Dr. Manmohan Singh, on Monday called for higher domestic production of oil, saying that domestic sources of oil supplies are inadequate to meet the growing demand for energy.

Inaugurating the 9th International Oil and Gas Conference and Exhibition (Petrotech 2010) here, Dr Singh said: " Developing domestic sources involves huge capital investment. Like other emerging economies, India needs adequate supplies of energy at affordable prices to meet the demand of its rapidly growing economy.

"Most of our requirement of hydrocarbons is met through imports. In India, the demand over the next 10 years will increase by over 40 percent whereas the increase in the supply from the maturing oil-fields is expected to be around 12 per cent.

Emphasizing that the Indian Government is encouraging national oil companies to pursue equity oil and gas opportunities overseas, Dr Singh said: "We seek to build strong economic partnerships with other producing countries and their oil and gas industries to the mutual benefit of each other.

"We also seek to work together with other countries especially those which are active in the oil and gas space to tackle the problem of climate change," he added.

He further said that the country is witnessing supply side uncertainties.

"Some energy endowed countries have roblems in augmenting production because of various reasons, including lack of the required technology and sometimes political uncertainty. Another challenge that faces all the countries of the world today is one arising out of the challenges of climate change," he added.

"The emerging energy technologies have to be adequately equipped to manage carbon emissions. We also need a rethink on the traditional energy basket which is presently loaded in favour of fossil fuels," he said.

He further suggested the participants of Petrotech-2010 to explore the possibility of an association of oil and gas companies to deliberate upon such issues of shared interest.

"The Petrotech conferences provide a forum exchange of views and ideas on a subject of very critical importance to the world community as a whole. Over the years, they have become a leading platform for interaction on issues and possible strategies in the global hydrocarbon industry," he added. (ANI)