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June 11, 2008
Iraqi Oil Could Help Ease Pressure
on Global Economy: India
New Delhi
If Iraqi crude oil begins to flow into the market it can have a
positive impact on the global economy that is already showing signs
of retardation, External Affairs Minister Pranab Mukherjee said here
Wednesday.
He cautioned that oil prices are threatening to touch $150 per
barrel and according to some experts could even reach $200 per
barrel.
"It is important that the people of Iraq freely determine their
political future and exercise control over their natural resources.
Once this happens, perhaps an easing of the price burden could be
expected," he said.
"I believe that it would be helpful if Iraqi crude oil begins to
flow once again to its full potential. Once the Iraqi oil is again
in the market, the overall spin-offs are going to be large, not only
for the global economy, but also for the Iraqi people."
He was speaking a function to launch a book, "The Ultimate Prize:
Oil and Saddam's Iraq," written by India's former ambassador to that
country, R.S. Kalha.
Referring to the steep hike in the oil prices, the minister said,
"This massive volatility is already having a negative impact on the
global economy and is likely to retard growth and development."
He justified the recent hike in the prices of petroleum products in
India. "In the meanwhile, the government, faced with the present
situation, found that there was no viable option but to increase oil
product prices," he said.
"It is clear that the oil price hike is externally induced. It is
not simply Indian economy that is bearing the brunt. The entire
global economy is facing this crisis, with the developing countries
taking on an unbearable burden."
The minister pointed out that Indian economy that was growing at
over eight percent a year since 2003-04 needed to maintain this
growth rate for the next 25 years in order to pull out a large
number of people from poverty and to meet the country's
developmental deficit.
"For this, we would have to increase our primary energy supply by
three-four times and electricity generation capacity by five-six
times. By 2031-32 power generation capacity would need to be
increased to nearly 8,00,000 MW from the current capacity of around
1,60,000 MW," he added.
Mukherjee pointed out that the country's proven resources of fossil
fuel along with the "renewables" and hydropower were inadequate to
meet India's long-term energy needs.
Arguing in favour of expanding the country's energy basket, the
minister said: "In my view, nuclear power appears to offer India the
most potent means to realize its long-term energy security."
IANS
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June 11, 2008
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