NEWS | India Seeks Higher Oil & Gas Prices to Ensure Producers Invest Sufficiently in Future Supplies

India's exports have suffered due to lower oil revenues in the Middle East and the global economy has suffered due to lower energy prices.

By The Gulf Intelligence

Image Attribute: The Gulf Intelligence

Doha, May 25, 2016  – India, the world’s 4th largest energy consumer, wants higher oil and gas prices so that energy producers are incentivized to invest in developing future supplies, energy advisor and national spokesperson for the country’s Ruling Party, BJP, said during the annual Abdullah Bin Hamad Al-Attiyah International Energy Awards Lecture at the Museum of Islamic Art in Doha on May 24th.  

India, home to 1.27 billion people, is emerging as one of the world’s largest consumers of energy, alongside China and the US. Asia as a whole is expected to account for the majority of the 48% growth in global energy consumption between 2012 and 2040, according to the US’ Energy Information Administration (EIA). At first glance, lower oil prices represent a welcomed boost for energy-hungry economies, as it slashes their import bill by more than half compared to 2014. But, Narendra Taneja, Chairman of the Energy Security Group and the Federation of Indian Chambers of Commerce and Industry, said the opposite is now true.    

“India's exports have suffered due to lower oil revenues in the Middle East and the global economy has suffered due to lower energy prices. Fears that low prices could lead to economic and social distress in the Middle East gives us sleepless nights. We want prices that are not too high and not too low,” said Taneja, during his Gala Dinner Lecture at the Awards to nearly 400 government and energy professionals from around the world.   

Taneja also pointed to the need for political stability in the Middle East in order to ensure that Gulf countries maintain their competitive edge, especially against a backdrop of low oil prices. A group of emerging energy suppliers – such as Iran, the US and East African countries – means traditional energy suppliers in the Gulf are facing stiff competition.  

“Disturbances in the Middle East disturb us and force us to diversify our supply of oil and gas to other regions, such as Africa, Australia and even Latin America and the US. I wish we did not have to do that,” said Taneja. “We all must ensure a peaceful and golden future for the entire Middle East. We, the consumers, are with you on this. India, China, Japan, Pakistan, Bangladesh – and I am sure all the other importers – want to see a stable and peaceful Middle East.”     

The Abdullah Bin Hamad Al-Attiyah International Energy Awards is the premier award in the international energy industry that recognizes highly influential individuals for their lifetime achievement in the advancement of the global energy industry. There are six categories of recognition: OPEC; Education; Journalism; Qatar Energy Industry; Producer-Consumer Dialogue; Renewable Energy, plus an Honorary Lifetime Achievement Award for the Advancement of International Energy Policy & Diplomacy.  

His Excellency Ali Al-Naimi, Saudi Arabia’s recently retired Minister of Petroleum and Mineral Resources, was this year’s recipient of The 2016 Honorary Lifetime Achievement Award, which was presented by the Abdullah bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development.  

Maersk Oil, Qatar Petroleum (QP), Qatar’s Supreme Committee for Delivery and Legacy and Dolphin Energy are partners of The Abdullah Bin Hamad Al-Attiyah International Energy Awards.

Narendra Taneja  

Chairman of Energy Security Group and the Federation of Indian Chambers of Commerce and Industry (FICCI); energy advisor and National spokesperson of BJP, India’s Ruling Party.  

Mr. Narendra Taneja is the Chairman of Energy Security Group and the Federation of Indian Chambers of Commerce and Industry (FICCI) as well as energy advisor and National spokesperson of BJP, India’s Ruling Party. He is also President of the World Energy Policy Summit. He is India's leading expert, thinker, and commentator on national and international energy issues and developments. Mr. Taneja has authored a large body of articles and commentaries on energy business, policy, diplomacy, geopolitics, security and energy poverty and empowerment since 1980. He has also authored two books and edited several publications. He read economics, business, commerce, policy, leadership, diplomacy and international affairs at St John's College, Agra, in India and at the Universities of Oslo and Oxford. He represents India on the energy committee of the BRICS Business Council. He is also a member of the World Economic Forum Global Agenda Council on the Future of Electricity.