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Speech of
the Hon'ble President of India, Smt. Pratibha Devisingh Patil, at the inaugural
function of the Golden Jubilee Celebrations of IndianOil
(Vigyan Bhawan, New Delhi, 30th June 2009)
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Ladies and Gentlemen,
It gives me great pleasure to participate in the inauguration of the Golden
Jubilee Celebrations of the Indian Oil Corporation. Fifty years of this
organization are symbolic of India's efforts to build its own energy industry
with a view to achieving self-sufficiency and thereby, meet the strategic
requirement of energy security. When the Indian Oil Corporation came into
existence in 1959, the country's domestic oil sector was almost non-existent.
We can be proud that today India has home-grown energy companies in
exploration, production and distribution of oil and gas, which are world class.
Energy has an intrinsic link with the entire economic activity of the country.
It is considered to be the very engine that drives economic growth. Its
availability is the key to sustainable development and has a direct impact on
the quality of service in the fields of education, health, transport, housing
and food security for citizens. Inadequacy of energy supply would indeed,
adversely affect these vital and essential requirements of any society.
The International Energy Agency has, in its recent outlook, envisaged that the
global primary demand for energy will grow, on an average, at the rate of 1.6
percent per year till 2030. This increasing demand raises questions about how
energy requirements will be met over a long period of time in a scenario of,
one - limited global reserve of fossil fuels, currently the major source of
energy; two - unstable prices of fuel oil; three - where a large number of
people still do not have access to energy supply and four - growing
environmental concerns. For nations, energy security which implies reliable
supply of energy at affordable prices to cater to the needs of all citizens
assumes a central position. In fact, energy security has now definitely entered
the lexicon of most nations as they pursue their development and welfare
objectives. Enhancement of energy security will require appropriate choices of
energy sources to meet economic needs; making energy accessible to all its
citizens to meet the principles of equity; and to adopt technologies that
promote efficiency in the energy sector in upstream and downstream activities,
as well as take into account environmental concerns.
It must be recognized that for achieving energy security comprehensive energy
policies at international, regional and national levels will need to be
pursued. The volatility in oil prices, including the price spurts of last year
when they hovered close to US $ 150, bring to mind the challenges one faces.
Cooperative framework through greater dialogue and openness in the global
energy market will ensure the long-term interest of both producers and
consumers.
As India accelerated its growth momentum, there has been a corresponding
increase in our energy requirements. India stands as the 12th largest economy
in the world. With over a billion people, it supports 17 percent of the global
population and, therefore, needs to be assured of the availability of energy to
sustain its growth to meet the aspirations of the people. Post-independence,
when faced with food shortages we, via the Green Revolution route, attained
self sufficiency in food grains. The White Revolution resulted in making India
the largest producer of milk and milk products. It is time now for an Energy
Revolution that will ensure our energy security, and reliably meet the demand
for energy services of all its sectors and people. Meeting this vision requires
that we pursue all available fuel options and forms of energy, whether
conventional, non-conventional, new or emerging as only a multi-pronged
strategy that can better provide for stable energy situations. It needs to be
examined what can be the most efficient and productive mix of energy sources
and how in the national energy grid, conventional and non-conventional forms of
energy can complement each other.
We must step up exploration efforts to find more coal, oil and gas and augment
renewable sources of energy. As Indian Oil owns and operates 10 of India's 20
refineries, accounting for 34 percent of the national refining capacity, I am
sure that the nation can count on its contribution in increasing production.
Although our primary dependence on fossil fuels is likely to continue in the
foreseeable future, other energy resources - including hydro-electricity, wind,
solar, nuclear energy and bio-fuels - would occupy more space in the energy
mix. Environmental concerns as well as the finite supply of fossil fuels will
be factors that will propel decisions in this direction.
The principle of equity in energy is important. Our fundamental objective is to
secure access to energy for all at affordable prices. The challenge of how to
reach energy to all households would require proper distribution systems for
electricity and power. The recurrent shortages faced every year during the
summer can be avoided with proper planning at every level from power
generation, to transformer maintenance to distribution at the household level.
The original mandate of Indian Oil was to reach petroleum products to every
nook and corner of the nation. It is heartening that Indian Oil has a
countrywide marketing infrastructure, with its sales points all over the
country. Indane LPG cooking gas of Indian Oil, I understand holds the world
record for the largest network of packed LPG supplies. I am also happy that to
cater to the rural populace, it has established the one-stop convenience shops
in the form of Kisan Seva Kendras, offering a variety of products and services,
besides auto fuels and kerosene.
We need to use our energy resources optimally and efficiently. A trend evident
has been a reduction in the energy intensity of our economy, which has been
falling and is about half of what it used to be in the early seventies. This
makes India a country that has a less intensive path of development. Using
energy carefully without wasting it is important in the context of better
energy consumption patterns. A unit of energy saved by a user is greater than a
unit produced, as it is cost saved on production, transport, transmission and
distribution. Energy conservation must be an integral part of the energy
security efforts of our nation. Hence, even as we take steps to increase
generating capacity, it would need to be accompanied by efforts for
conservation of energy at every level. This is a national responsibility and
would require contribution from all individuals, all industries, and all
sectors of the economy.
Measures have been taken in this regard. An energy labeling programme for
appliances was launched in 2006. Comparative star-based labeling has been
introduced for electric appliances providing information about energy
consumption and thus, enabling consumers to make informed decisions. The Energy
Conservation Building Code launched in May 2007, promotes the design of new,
large commercial buildings to optimize the building's energy demand. Steps like
these must continue.
No discussion on energy security can be complete without reference to the
critical role of Research and Development. Innovative technologies are needed
for making oil drilling more economical, clean coal technologies, more
efficient furnaces, cost effective renewable energy. I would, therefore, urge
that technological upgradation and research be given the utmost attention. A
more vibrant and active collaboration of industries with academic and research
institutes should also be forged.
Focus on the energy sector is likely to drive a huge demand for skilled and
trained technical personnel. Moreover, it is estimated globally that a
significant portion of the critical skill-holders in the industry will retire
in 10 years, making it vulnerable to a talent shortage. A challenge for Indian
energy companies will therefore be, to prepare the next generation of
technologists. A good beginning has been made in the past decade with the
setting up of institutions dedicated to petroleum studies but there should be
more efforts in this direction.
A globalised world has resulted in more complex inter-linkages in the energy
sector. Indian national oil companies, therefore, should participate in global
operations and optimize arrangements with overseas partners. Indian Oil with
its teams of scientists, engineers and managers can be a significant player in
the global expansion of the nation's oil and gas sector.
I conclude by wishing Shri Murli Deora, Minister of Petroleum and Natural Gas,
Shri Jitin Prasada Minister of State and Indian Oil and its team success in all
their endeavours. I am confident that when Indian Oil celebrates its centenary,
it will have the satisfaction that it was able to pursue many new pathways and
play its part effectively in transforming India into one of the world's leading
economic powers.
Thank You,
Jai Hind.
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