Sunday, May 20, 2012

Oil or gas?

Should India shift from oil to gas? Why? Let us look at some facts to begin with. At 160 million tonnes a year, the crude oil import bill stands at Rs 6,00,000 crores. Taking into consideration the cost of imported gas and one available in-house, we could have a saving of Rs 2250 crores on import bill of each million ton of crude oil substituted, say experts.


Further a switch of 50 million tonnes of crude to LNG would help in many ways besides the cost. But some policy initiatives need to be taken. Like, building infrastructure for storage and transportation of gas; remunerative prices for gas; long-term contracts for import of gas from US, Middle East, Australia, etc. Finally the automobile industry would have to come out with vehicles running on gas, instead of the popular diesel.


However, while talking big figures, sometimes the smaller, easier options tend to be neglected. Would improving the Railways help shift the core of transportation from oil to coal (electrification of all lines)? Biogas in place of kerosene and LPG for cooking? How about shifting industries from liquid fuel to coal gassifiers? But while these may take the burden away from oil bill, it would increase dependence on coal? Do we want that? Should the economy issues overrule ecology ones - it boils down to same questions!

No comments: