The countrys energy import bill surged at an average 14% annually to $161 billion between 2008-09 and 2013-14. But this is likely to advance by only 1.6% annually to $179 billion by 2019 due to the decline in the prices of crude oil, thermal coal and liquefied natural gas (LNG), according to estimates made by ratings agency Crisil. Thermal coal and LNG will be under pressure in the long-term because of structural shifts like surge in supplies, move to alternate fuel, and slowing demand, the agency said. This is a huge blessing for India, since energy imports accounted for 36% of its total imports last fiscal, it said. In the last fifteen years, rising prices encouraged significant investments in oil & gas and mining, said Mukesh Agarwal, president, Crisil Research. Globally, investments in oil & gas exploration and production more than doubled to $5.7 trillion between 1998 and 2013. This led to reserve accretion increasing by 1.6 times to 626 billion barrels of oil equivalent over the 1998-2013 period, Agarwal said.
Posted on: Sun, 24 Aug 2014 04:43:41 +0000