Howdy Modi: India’s energy security to be the focus for PM Modi in Houston

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Published: September 20, 2019 5:50 PM

The US has replaced Russia and Saudi Arabia as the world’s top oil producer and Texas alone produces more crude oil than Iran and Iraq, therefore, with its growing demand for oil, for the American oil companies India is a lucrative market.

The US has replaced Russia and Saudi Arabia as the world’s top oil producer and Texas alone produces more crude oil than Iran and Iraq, therefore, with its growing demand for oil, for the American oil companies India is a lucrative market.

With India looking to stepping up its oil imports and investing in the US energy sector, Prime Minister Narendra Modi will be meeting with the CEOs of the top US oil companies over a roundtable on Sept 21.

American companies including BP PLC, Exxon Mobil, Schlumberger, Total S.A, Baker Hughes, Cheniere Energy, Dominion Energy, and others will be present at the roundtable on energy, which is one of the most important aspects of the Indo-US relations. And according to MEA, the talks will be to project India as an important market but the two sides will discuss possible investment and other opportunities in the economic sector.

Ahead of the visit, Foreign Secretary Vijay Gokhale said that “Energy is an important component in the Indo-US trade mix. We import approximately $4 billion worth of oil and gas from the US.”

From the Indian side, there will representatives of the public and private sector oil and gas companies representing India at the meet.

A big crisis is brewing in the Gulf region after the drone attacks on the oil facilities of Saudi Arabian Oil Company Aramco and Yemen’s rebel Houthi group, reportedly threatening to carry out further strikes there as well as UAE.

India has already stopped importing from Iran after the Trump administration refused to give further waivers to India. All this has pushed India to explore other avenues to meet its needs.

Sources have indicated that at the roundtable the talks could center on the terms of exports and if there will be concessions on par with what India was getting from Iran. As has been reported earlier Iran had offered cheaper freight and a 60 day credit time to the Indian companies importing from there.

The US has replaced Russia and Saudi Arabia as the world’s top oil producer and Texas alone produces more crude oil than Iran and Iraq, therefore, with its growing demand for oil, for the American oil companies India is a lucrative market.

Besides the US, India has already had talks with Russia to ensure there is an uninterrupted supply of oil and after the recent drone attack in Saudi Arabia which could hamper the oil supply, Russian company Rosneft PJSC has ensured India of its uninterrupted supply and support to meet the country’s growing needs. According to sources, a high-level delegation from Russia is expected to visit India soon to discuss the modalities.

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