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New Delhi, June 21, 2018: Topic - SUSTAINABLE GLOBAL ENERGY FUTURE

Fellow panelists, Excellencies and distinguished guests,

It is indeed a pleasure to meet you all here at this OPEC forum. I have earlier attended this forum in 2015. This year is probably more critical to present a major buying country’s point of view than ever before in the recent past.

The energy vision of Prime Minister Modi has 4 pillars - Energy Access, Energy Efficiency, Energy Sustainability and Energy Security. Energy sustainability has to be seen in tandem with the other three pillars for a stable energy future. India has demonstrated very strong commitment to the Paris Agreement and has taken the lead in promoting the International Solar Alliance. In the oil and gas sector we have migrated to Euro IV norms, we have introduced Euro 6 norms in National capital Delhi and now we are preparing to migrate to Euro 6 by April 2020 in whole of India. Promoting biofuels, energy efficiency and moving to a gas based economy are also our priorities.

Since this forum has Ministers of producing and consuming countries and captains of industry, it is the right forum to discuss sustainable pricing. Oil and Gas are commodities of trade but also of basic necessity. Whether it is the kitchen of a common man or an aircraft, energy is essential. The world has for too long seen prices on a roller coaster and interventions which are detached from market fundamentals. It is high time to move to responsible pricing, one that balances the interests of both the producer and consumer. We also need to move to transparent and flexible markets for both oil and gas.

We often see global trade practices in the field of oil and gas which are not contributing to Energy Access and Affordability and become a hindrance to sustainability. Price of oil and gas have become subject to vagaries of geo-politics. Political conditions, sometimes internal and sometimes external, result in reduced output of some countries. We expect from OPEC and its members a commitment to step in more than fill the gap to ensure sustainable prices.

Globally crude prices have gone beyond the threshold which can be sustained by the world, particularly countries like India which is a key driver of world economy. These prices are creating stress throughout global economy, as it is giving pain to us in India. The global economic outlook already has threats from trade wars, geo political events and threat of instability coming back to the Euro Zone. The already fragile world economic growth will be at threat if oil prices persist at these levels. My fear is – this will lead to energy poverty in many parts of the World.

While we are not in favour of prices as low as $30 per barrel we also do not support the prevailing high price which dent our fiscal balance and undermine our development process. They also cause undue hardships, particularly to those at the bottom of the pyramid in developing and least developed countries.

If the world has to grow as a whole, there has to be a mutually supportive relationship between producers and consumers. It is in the interests of producers that other economies keep growing steadily and rapidly so as to ensure growing energy markets for themselves. This is the key to energy sustainability. OPEC as the predominant supplier has the responsibility to maintain supply equilibrium.

I will end by quoting Mahatma Gandhi, Father of our Great Nation who said that earth provides enough to satisfy every man’s need but not every man’s greed.

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