Just in case

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Excellent study material for all civil services aspirants - begin learning - Kar ke dikhayenge!

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Just in case

Read more on - Polity | Economy | Schemes | S&T | Environment


  •  Post COVID world: Earlier we had "just in time". Now we will have "just in case". 
  • Oil market: Today, everyone is spooked about it, with no clear view on the future. While the oil futures were in negative territory in April 2020, in May they rose to $30 per barrel. What happens now depends on China-US relations, when the COVID vaccine arrives, etc. ‘New normal' is here.
  • Trouble for decision-makers: It is clear that India will constantly need fossil fuels for many years - oil, coal and gas. Most of it will be imported. Sadly, the growth of the economy has been derailed completely. Oil companies face an uncertain future, but the exact nature of challenge is unknown.
  • Oil facts: India consumes 5 lakh barrels of crude oil each day, and 4.5 lakh of this is imported. Each month 10% of global tanker market's VLCC (very large crude carriers) bring oil to Indian ports. Half of this is from Saudi Arabia, Kuwait, Abu Dhabi, Iran and Iraq.
  • A new policy: India can switch over to "just in case" policy. Indian oil PSUs like ONGC and OIL are given capital to explore new oil and gas reserves. India does it to stay secure. What if oil keeps crashing? Should these firms pivot to clean energy now?
  • Supply problems: Most of our crude comes from countries with deep local political issues. What if supplies are disrupted any time? Since decades we have thought of it. Today, the new angle is COVID uncertainty. 
  • Strategic oil reserves: India today has 11 days of strategic reserve cover (5.33 m tonnes) and will go upto 24 days (11.8 MT). India needs capital to take it upto 100 days of cover. Since government doesn't have the money now, private sector will have to be involved. 
  • India-Pakistan-China relations: What if these went downhill? How will India protect its oil assets in Jamnagar and Mumbai then? The government needs to now ponder on multiple aspects of emerging situations, and create an absolutely new way of approaching emerging problems - using JUST IN CASE OUTCOMES.
Read more on - Polity | Economy | Schemes | S&T | Environment 
 
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PT's IAS Academy: Just in case
Just in case
Excellent study material for all civil services aspirants - begin learning - Kar ke dikhayenge!
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