Finshots Daily Why is India leasing out its petroleum reserves?
7 snips
Apr 10, 2024 Exploring the viability of strategic petroleum reserves for countries like India, the financial dynamics and shifting energy landscape, and India's innovative approach of leasing oil caverns to private companies for stable oil supply.
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IEA Formation
- The 1973 oil crisis led to the formation of the IEA (International Energy Exchange).
- This aimed to counter OPEC's dominance by storing strategic petroleum reserves (SPRs).
India's SPR Plan
- India plans to build its first privately managed SPR by FY30.
- Existing reserves are managed by the government through ISPRL.
SPR Costs and Effectiveness
- Maintaining SPRs can be costly, potentially outweighing the benefits.
- The US SPR's impact on stabilizing oil prices has been limited.