World Energy Outlook 2007

For crude oil alone, India's import dependence reaches 94%. In volumetric
terms, India overtakes Japan to become the third-largest oil importer, behind
the United States and China, in 2024.
mb/d
7
6
5
4
3
2
1
Figure 17.4: India's Oil Balance in the Reference Scenario
0
2000 2005 2010 2015 2020 2025 2030
Domestic production
Net imports
Box 17.1: India's Emergency Oil Stocks
To mitigate the risks of short-term supply disruptions, the Indian
government decided in early 2004 to build a strategic stockpile of crude oil.
For that, the Indian Strategic Petroleum Reserves Ltd (ISPRL) was
established, which is now under the control of the Oil Industry
Development Board (OIDB), the state-controlled organisation that
manages loans and grants to the oil industry.
The emergency oil stocks will supplement crude oil and petroleum
products stocks already held by Indian oil refiners to meet their own
operational needs. The stockpile will eventually reach 15 Mt or about
110 million barrels in 2016, to be accumulated in three phases of 5 Mt
each. Each phase will cover 14 days of domestic consumption or 19 days of
net oil import, at 2006 levels. The oil will be held in rock caverns with
interconnected galleries. The first phase includes three locations: Padur
(2.5 Mt) and Mangalore (1.5 Mt) on the west coast and Visakhapatnam
(1 Mt) on the east coast, and will be finished by 2012. The total cost of this
first phase of the project was estimated in 2006 at $2.7 billion, including
the construction of the storage facilities ($600 million) and the buying of
the oil (at $55 per barrel). The government has set aside funds for this first
496 World Energy Outlook 2007 - INDIA’S ENERGY PROSPECTS