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Delayed Development of Strategic Petroleum Reserves (SPRs), India Might Miss the Train Again

News

India has squandered most of the opportunity presented by record low oil prices to stock up for the future and left itself vulnerable to possible supply shocks, a whole decade after it first decided to store crude oil for emergency purposes.

Source:  LiveMint

SNP Insights

Amidst drastic oil prices drop & anticipated subdued rate at near future due to supply glut, it is very much imperative for government to secure its oil reserve for possible future supply shocks. Yet building of Strategic petroleum reserves (SPRs) in time bound manner & securing oil supply, for 90 days of critical stock as par global standard remains a herculean task to accomplish. As for sourcing 13 days of stock for present capacity of 5.33 MT will need on average three years of time, it might be case that by the time India will be sourcing oil for filling up SPRs, price advantage due to supply glut might be gone.

Source: SNP Infra Research