Essential to explore and promote alternative energy to cut dependence on fossil fuel import says India’s Petroleum Minister
India needs to cut down dependence on fossil fuel imports by exploring and promoting alternative energy resources said Chief Guest Hardeep Singh Puri, Ministry of Petroleum and Natural Gas Minister at the International Conference on ‘Biofuels – A Pathway towards Sustainable Future’. He was speaking at an event organised by the Society of Indian Automobile Manufacturers (SIAM) in New Delhi. The conference was part of the year-round activities to promote ethanol, which saw participation from automotive industry experts, government officials, academia, and other stakeholder associations including the ambassador and experts from Brazil. The government of India has mandated SIAM for taking promotional measures for ethanol in the country jointly with the Ministry of Heavy Industries (MHI) as a transportation fuel. India’s Ethanol Blending Programme is being driven by the highest level of the government. The deadlines decided for all-India implementation of E-20 are 2023 for vehicles to be material compliant, and 2025 for vehicles to be fully E-20 compliant. The Conference was divided into three sessions, with a Minister Plenary Session on ‘A giant leap for biofuels – Ethanol blending & SATAT Scheme’; ‘Improving the urban air quality– Environmental Benefits of Biofuels’, and a Panel discussion session focusing on ‘Trends in Biofuel Production – Maturing into a Biofuel Economy’. Vinod Aggarwal, President, SIAM, CEO & MD, Volvo Eicher Commercial Vehicles gave the welcome address and stated “Through SIAM, I am happy to note that the Indian automotive industry is working closely with the government as we transition to sustainable transportation through implementation of stringent emission standards and increased emphasis on alternate fuels. Biofuels like ethanol offer a pathway towards a sustainable future which includes clean air and less dependence on imported oil, thereby supporting a more Aatmanirbhar Bharat.” Petroleum Minister Hardeep Singh Puri said that “Taking into account Amrit kaal: Vision 2047 goals, where we intend to grow our $3 trillion economy to $32 trillion, and therefore, our energy requirements are bound to rise to account for lifestyle, trade, and manufacturing development. Additionally, environmental conservation is also critical to our developmental journey. Under the SATAT scheme, many entrepreneurs have established CBG plants to produce and supply CBG to Oil Marketing Companies. With the assistance of OMCs and other enthusiastic players, 37 CBG plants have been commissioned, and approximately 9,000 tonnes of compressed Biogas have already been sold. In order to make decarbonised mobility a reality, Indian automakers must stay on the path of sustainability.” The Guest of Honour, Andre Aranha Correa Do Lago, Ambassador of Brazil to India, mentioned about the strong partnership that India has built with Brazil on the journey to ethanol adoption. He emphasised the parallels between the two countries and focused on the benefits that would accrue to India because of usage of higher blends of ethanol. Atsushi Ogata, President, CEO & MD, Honda Motorcycles & Scooters India said, “Due to the advance information dissemination of all competitors in the market, customer in India is extremely aware about the performance requirements and environmental footprints of the products available to them. Customers in India will need a very strong assurance from product performance side and incentives from policy side for ethanol adoption in the complete vehicle parc.” Ashwini Kumar Choubey, Minister of State, MoEF&CC, said, “Today’s conference, with a focus on biomass-based ethanol production and blending in the transport sector, is a step towards Aatmanirbharta. Sustainable mobility is critical for an overall low-carbon economy, including sectorial decarbonisation strategies and measures with the perspective of the Indian automotive industry. The government’s SATAT scheme envisages the use of low-carbon biofuels and Compressed Biogas production from farm waste/residue. Ethanol blending is becoming important for meeting GHG emission targets. The government of India is committed to attaining a non-fossil energy capacity of 500 GW by 2030 and further reducing its projected carbon emissions by one billion tonnes by 2030. A successful ethanol programme can save India, foreign exchange to the tune of Rs. 300 billion per annum.” Pankaj Jain, Secretary, Ministry of Petroleum and Natural Gas added that with the efforts made by government and energy industry stakeholders, the existing installed capacity of molasses-based distilleries had reached 4.26 billion litres and was likely to touch 12 billion litres for the effective target of 20% blending in gasoline. Like the plant inaugurated in Panipat in August 2022, multiple new second generation ethanol production plants are being installed across the nation. Vikram Kasbekar, Executive Director, Hero MotoCorp gave a topical presentation on the different ways in which Indian automobile sector is gearing up for the incumbent changes due to biofuel adoption. Additionally, he focused on the customer experience in the ecosystem of multiple fuels and decarbonised mobility. Dr S S V Ramakumar, Director – R&D, IOCL, laid down the contributions and responsibilities of OMCs in adoption of low carbon fuels. He also emphasised the information dissemination required for realisation of benefits for the farmers in biofuel economy. The session also witnessed participation from C V Raman, Chairman SIAM ENC, CTO, Maruti Suzuki India and Dr. Plinio Nastari, President, Datagro, Brazil.
India snaps up cheap Canadian oil as Russia sanctions sting
Canadian heavy crude exports from US Gulf Coast ports have sharply rebounded as India takes advantage of sharply discounted prices, according to oil-tracker Vortexa. A total of 3.3 million barrels of Access Western Blend, a crude grade produced in the oil sands of Alberta, are scheduled to arrive in India next month after departing the US Gulf, according to Vortexa Ltd. Canadian heavy crude’s discount to West Texas Intermediate crude on the Gulf Coast expanded to a record, prompting Indian refiners to opportunistically increase purchases, Rohit Rathod, a Vortexa analyst, wrote in an email. With international sanctions on Russian crude scheduled to tighten within weeks, some Indian refiners have halted purchases of the nation’s oil.
Biden To Release 15 Million Barrels From Oil Reserve, More Possible
President Joe Biden will announce the release of 15 million barrels of oil from the US strategic reserve Wednesday as part of a response to recent production cuts announced by OPEC+ nations, and he will say more oil sales are possible this winter, as his administration rushes to be seen as pulling out all the stops ahead of next month’s midterm elections. Biden will deliver remarks Wednesday to announce the drawdown from the strategic reserve, senior administration officials said Tuesday on the condition of anonymity to outline Biden’s plans. It completes the release of 180 million barrels authorised by Biden in March that was initially supposed to occur over six months. That has sent the strategic reserve to its lowest level since 1984 in what the administration called a “bridge” until domestic production could be increased. The reserve now contains roughly 400 million barrels of oil. Biden will also open the door to additional releases this winter in an effort to keep prices down. But administration officials would not detail how much the president would be willing to tap, nor how much they want domestic and production to increase by in order to end the drawdown. Biden will also say that the U.S. government will restock the strategic reserve when oil prices are at or lower than $67 to $72 a barrel, an offer that administration officials argue will increase domestic production by guaranteeing a baseline level of demand. Yet the president is also expected to renew his criticism of the profits reaped by oil companies — repeating a bet made this summer that public condemnation would matter more to these companies than shareholders’ focus on returns. It marks the continuation of an about-face by Biden, who has tried to move the U.S. past fossil fuels to identify additional sources of energy to satisfy U.S. and global supply as a result of disruptions from Russia’s invasion of Ukraine and production cuts announced by the Saudi Arabia-led oil cartel. The prospective loss of 2 million barrels a day — 2 per cent of global supply — has had the White House saying Saudi Arabia sided with Russian President Vladimir Putin and pledging there will be consequences for supply cuts that could prop up energy prices. The 15 million-barrel release would not cover even one full day’s use of oil in the U.S., according to the Energy Information Administration. The administration could make a decision on future releases a month from now, as it requires a month and a half for the government to notify would-be buyers. Biden still faces political headwinds because of gas prices. AAA reports that gas is averaging USD 3.87 a gallon. That’s down slightly over the past week, but it’s up from a month ago. The recent increase at prices stalled the momentum that the president and his fellow Democrats had been seeing in the polls ahead of the November elections. An analysis Monday by ClearView Energy Partners, an independent energy research firm based in Washington, suggested that two states that could decide control of the evenly split Senate — Nevada and Pennsylvania — are sensitive to energy prices. The analysis noted that gas prices over the past month rose above the national average in 18 states, which are home to 29 potentially “at risk” House seats. Even if voters want cheaper gasoline, expected gains in supply are not materialising because of a weaker global economy. The U.S. government last week revised downward its forecasts, saying that domestic firms would produce 270,000 fewer barrels a day in 2023 than was forecast in September. Global production would be 600,000 barrels a day lower than forecast in September. The hard math for Biden is that oil production has yet to return to its pre-pandemic level of roughly 13 million barrels a day. It’s about a million barrels a day shy of that level. The oil industry would like the administration to open up more federal lands for drilling, approve pipeline construction and reverse its recent changes to raise corporate taxes. The administration counters that the oil industry is sitting on thousands of unused federal leases and says new permits would take years to produce oil with no impact on current gas prices. Environmental groups, meanwhile, have asked Biden to keep a campaign promise to block new drilling on federal lands. Biden has resisted the policies favoured by U.S. oil producers. Instead, he’s sought to reduce prices by releasing oil from the U.S. reserve, shaming oil companies for their profits and calling on greater production from countries in OPEC+ that have different geopolitical interests, said Frank Macchiarola, senior vice president of policy, economics and regulatory affairs at the American Petroleum Institute. “If they continue to offer the same old so-called solutions, they’ll continue to get the same old results,” Macchiarola said. Because fossil fuels lead to carbon emissions, Biden has sought to move away from them entirely with a commitment to zero emissions by 2050. When discussing that commitment nearly a year ago after the G-20 leading rich and developing nations met in Rome, the president said he still wanted to also lower gas prices because at “$3.35 a gallon, it has profound impact on working-class families just to get back and forth to work.”
UK Government In Crisis: Resignations, Bullying, And Financial Turmoil
Things are going from bad to worse for British Prime Minister Liz Truss, with Interior Minister Suella Braverman resigning on Wednesday just a week after the Prime Minister fired Kwazi Kwarteng for the financial turmoil caused by the government’s experimental mini-budget. In her letter of resignation, Braverman admitted to having made “a technical infringement of the rules” when she sent an official document to a colleague from her personal email. The news coincided with chaos in Parliament amid voting on the removal of the fracking ban, which was one of the first things Liz Truss did when she came into office. Opposition MPs accused the Tory leadership of bullying its own parliamentarians into voting for the removal of the fracking ban, the BBC reported, with one Tory MP saying “I expect the prime minister to resign very soon because she’s not up to her job.” The UK is suffering through a cost-of-living crisis due in large part to the energy crunch plaguing the whole of Europe. So far, it appears that Truss has only made the problem worse, crashing the pound and adding to uncertainty within the government. Things came to a head last month after Truss presented her draft budget for the country, which envisaged hefty tax cuts. The budget sent the pound plunging and led to a government debt sell-off at such rates that pension funds were at risk of going under. Later, Truss walked back most of her budget stipulations, adding to a long list of U-turns from the British government and undermining any confidence observers may have had that this government is capable to deal with the major issues it is facing. Calls for her resignation have been growing louder in the past few weeks. Soaring energy costs, the risk of two to three-hour blackouts in the coldest days of winter, and an inflation rate of 10.1 percent as of September all call for a stable and competent government. Based on the evidence so far, this government is not that.
What is Russia oil price cap? India to examine West proposal
Union Oil Minister Hardeep Singh Puri on Wednesday said that India will examine the price cap on Russian oil proposed by the West. India is averse to joining a US-led global initiative to cap prices of Russian crude oil, two people aware of the matter had said. Speaking at an industry even in New Delhi, the minister said, “We will have a look at it.” As the world’s third-largest oil importer, India’s stand is likely to influence the efficacy of the price cap plan. What does Russia oil price cap mean? The group of seven nations, G7 is working to set a price cap on Russian oil. The G7 decided to put such a price cap on Russian oil to limit its oil revenues. These seven nations include Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and the European Union. The price cap is specifically designed to reduce Russia’s revenues and its ability to fund the war in Ukraine and limit the impact on global energy prices, particularly for low and middle-income countries. Russia has warned that it will snap oil supplies to any country that joins the price cap plan. Finance ministers of G7 countries on 2 September proposed that oil-related service providers be allowed to transact in Russian seaborne oil and petroleum products only at the price cap or lower. Russian oil price cap: Yellen reveals expected range US Treasury Secretary Janet Yellen had earlier said the exact dollar level of a price cap on Russian oil had not yet been determined, but insisted she had not suggested a price in the $60 per barrel range was being actively considered. She said that there was wide agreement among international finance officials at the annual meetings of the International Monetary Fund and World Bank that Russia should stop its war against Ukraine, which is having serious negative consequences for the global economy. Yellen told a news conference the exact level of the oil price cap would be determined together with other countries in the coalition in line with several benchmarks and could be adjusted. No decision had yet been made, she added. On Wednesday, Yellen said that a price cap on Russian oil exports in the $60-a-barrel range would likely be sufficient to reduce Moscow’s energy revenues while allowing profitable production. Consequences of Russian oil price cap Russia’s Deputy Energy Minister Pavel Sorokin had said that the price cap on Russian oil suggested by Western countries would harm the whole oil market. Speaking at the Moscow Energy Week conference, Sorokin said that Russia would not cooperate with countries that impose a price cap. Meanwhile, Russian deputy prime minister Alexander Novak also warned that the European Union’s plan to impose a price cap on Russian oil as part of fresh sanctions on the country for its war on Ukraine can have a ‘detrimental effect’ on global oil markets. “Such a tool disrupts all market mechanisms and can have a very detrimental effect on the global oil industry,” Novak said. India may not join US-led push on Russian oil price cap A government official, on condition of anonymity, said that Russia has threatened to stop supplies to anyone participating in the plan led by the United States on price cap of Russian crude oil. “Overall, the way the US pitches is that a price cap is also good for India. On the other hand, Russia has threatened to stop supplies to anyone participating in this plan. That doesn’t leave us anywhere. In that case, why would we want to be part of it? The deal here is that we have to balance our interests,” the official said. Russia, which has never been a major oil supplier to India, emerged as the third largest supplier to the energy import-dependent nation in FY23, as it snapped up supplies shunned by many countries. India gets Russian oil at an average discount of around $15-20 per barrel on a delivered-at-place (DAP) basis, wherein the seller bears the transportation risk for delivering at the designated port. In the current fiscal till August, India imported crude oil worth $11.41 billion from Russia, shows data from the Union ministry of commerce and industry.