India Signs MoU to Develop Strategic Petroleum Reserve in US
The Petroleum Minister, Dharmendra Pradhan has signed a memorandum of understanding with the Energy Secretary of the US in order to start cooperation on strategic petroleum reserve. India has also started talks to use the US storage facility for crude oil reserve so that the strategic oil stockpile of the country can be increased.
The deal, signed during the US-India virtual Strategic Energy Partnership Ministerial, is mainly based on a proposal from the USA after there was a historic drop in the oil prices recently on the wake of the COVID 19 pandemic around the world. India wanted to increase its crude oil stockpile in such a scenario, both inside the country and also outside the country. That is when the US came forward with the proposal.
The complete details are yet to be decided with regard to this but it is certain that India is going to invest in an American storage facility that will cater to the requirement of Indian crude oil demand.
This deal will be instrumental in improving the energy security of the country and also the US will start investing in the SPR reserves facilities in India in the future. The US Energy Secretary also stressed on this agreement as the first step forward. According to the US, this will ensure consistent energy supply, protect national security and promote regional and global security.
US-India Strategic Energy Partnership
Established in 2018, this recognizes the strategic importance of energy in the US-India bilateral relationship. The SEP is based on the long-standing energy relationship between the two countries and it also paves the way for government-to-government cooperation and also industry cooperation in the area of energy development.
This also works towards shifting the energy requirement to sustainable energy development as the collaboration will be on smart grids and unconventional and clean energy sources research for the benefit of both the countries.
Month: Current Affairs - July, 2020
Category: International Current Affairs