New Delhi [India], October 1 (ANI): Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Wednesday said the world has 104 million barrels per day of oil supply against consumption of 94 million barrels per day, but disruptions in key supply routes have pushed up freight costs and energy prices.
Speaking to the media on the sidelines of the 20th Foundation Day celebrations of the Petroleum and Natural Gas Regulatory Board (PNGRB), Puri said the current challenge in the global energy market is not a shortage of oil but disruptions to supply routes.
"There's no supply shortage in the world. The world has 104 million barrels of oil a day. It's only that the supply routes are choked and freight charges and others are high, and that's higher prices," Puri said.
He said global oil consumption is currently below available supply, with the world consuming 94 million barrels against 104 million barrels of available oil.
Puri referred to several geopolitical developments that have affected global energy markets, including the Russia-Ukraine conflict, disruptions around the Strait of Hormuz and the closure of the Red Sea route.
"When the Russia-Ukraine conflict started. That was one point. Then the next point was more serious when the Strait of Hormuz was closed," he said.
Puri said the Strait of Hormuz had emerged as a major energy chokepoint, noting that 40 per cent of global energy moves through the route.
Against this backdrop, Puri said India is also working to increase domestic oil and gas production to reduce its exposure to international energy market disruptions.
He said the first results from the government's Samudra Manthan initiative were beginning to emerge and expressed confidence that higher domestic production would help address some of the challenges faced by India because of international pricing.
"On our domestic front, I can tell you with Samudra Manthan already the first results are beginning to come in," Puri said.
He also responded to concerns over domestic production and the country's rising consumption, saying production has to be increased alongside demand growth.
"Your consumption is going up, and then if you're not investing in the well, the wells tend to lose over a period of time," he said.
Puri said India would continue working to strengthen domestic production while dealing with external risks affecting global energy markets.
He also struck an optimistic note on India's energy situation, saying the country would be able to manage the challenges with cooperation.
"All I want to do is end on an optimistic note. You guys also be optimistic... I think we'll manage and we'll manage well," Puri said. (ANI)
No global oil shortage, supply route disruptions driving prices: Hardeep Puri
