The ongoing conflict between America, Israel and Iran in West Asia has adversely affected the supply chain of crude oil and natural gas around the world. When the supply of energy across the world did not match the demand, many countries started reducing their consumption. Meanwhile, India has used diplomacy to secure energy supplies from more than 40 countries, so that its citizens do not face any energy crisis. However, now a recent report has come out which has raised concerns among the Indian public.
A report has claimed that India may face an energy crisis in the coming days as strategic oil reserves are depleting. A report by renowned global consultancy firm Ernst & Young states that India’s reserve oil reserves have backup for only 4.9 days – i.e. about five days – of consumption.
**Oil imported from more than 40 countries, still fear of shortage**
This claim has been made at a time when a Memorandum of Understanding (MoU) has been signed between the US and Iran for a peace agreement to end the long-running conflict in West Asia. Meanwhile, India imports 80 percent of its daily oil consumption from more than 40 countries. The list also includes Russia – which is currently embroiled in a war with Ukraine – where Ukrainian forces continue to bomb oil reserves. Despite these circumstances, Russia continues to export crude oil to India.
**What is India’s position in terms of strategic oil reserves?**
According to reports, if a major global war breaks out or the oil supply chain is disrupted, India currently has strategic crude oil reserves for only five days. In contrast, neighboring China has enough crude oil reserves to meet demand for 92 days. While Japan has oil reserves for 77 days and South Korea for about 31 days, India, the world’s most populous country, may face a possible oil shortage.
**Record crude oil import from Russia**
According to reports, Russia – which is currently embroiled in a war with Ukraine – could emerge as a big help for India amid the energy crisis. This is because India has started importing record amounts of crude oil from Russia since the Ukraine crisis began. Recent data shows that in June alone, India imported about 2.5 million barrels of crude oil from Russia every day, more than 50 percent of its total consumption.
