Wednesday, April 11,
2018 05:01PM / Narendra Modi
Earlier today, Narendra Modi, the Indian Prime
Minister addressed #IEF16. Here is his speech.
for Energy, Saudi Arabia
for Petroleum and Natural Gas, India
General, International Energy Forum
Welcome to India.
Welcome to the 16th
International Energy Forum Ministerial Meeting.
I am happy to see such a
large participation of Energy Ministers from producing and consuming nations,
Heads of International Organisations and CEOs in this forum.
As you come together today
to discuss the future of global energy,the world is seeing a great transition
in energy supply and consumption.
• Consumption growth has shifted to non OECD
countries: Middle East, Africa and developing Asia;
• Solar Photo-Voltaic energy has become economical
compared to all other energy sources. This is changing the supply
• Abundant availability of natural gas globally
with increased percentage of LNG and natural gas is contributing to the
primary energy basket;
• The US may soon become the largest producer of
oil. It is predicted to meet a major portion of the additional oil demand
in the next few decades;
• Coal may gradually go out of favour as a major
contributor to primary energy in the OECD World and later in developing
• The Transport sector will see massive changes in
the next few decades with adoption of electric vehicles;
• The World is committed to the climate change
agenda based on the COP-21agreement. The energy intensity of economies
will change with focus on green energy and energy efficiency;
Last month I came across
an energy forecast prepared by an agency, according to which India will be the
key driver of global energy demand in the next twenty-five years. India’s
energy consumption will grow by four point two percent a year for the next
twenty-five years. This is fastest among major world economies. The report also
mentions that Gas demand will triple by 2040.The number of electric vehicles will
rise to three hundred and twenty million by 2030, up from three million today.
We are entering an era of
energy abundance. However, one point two billion people still do not have
access to electricity. Many more do not have access to clean cooking fuel. We
must ensure that this situation is not exploited to the detriment of the
under-privileged. People must have universal access to clean, affordable,
sustainable and equitable supply of energy.
Let me share with you some
of my thoughts on the hydrocarbon sector and our endeavor to achieve energy
Oil and Gas are a
commodity of trade but also of necessity. Whether it is for the kitchen of a
common manor for an aircraft, energy is essential.
The world has for too long
seen prices on a roller-coaster.
We need to move to
responsible pricing, which balances the interests of both the producer and
consumer. We also need to move to transparent and flexible markets for both oil
and gas. Only then can we serve the energy needs of humanity in an optimal manner.
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. This will ensure growing energy
markets for them.
Efforts at artificially
distorting prices are self-defeating, as history has shown us. They also cause
undue hardships, particularly to those at the bottom of the pyramid in
developing and least developed countries.
Let us use this platform
to build a global consensus on ‘responsible pricing.’ This will serve the
mutual interests of both producers and consumers.
un-certainties, India also needs energy security. My vision for India’s energy
future has 4 pillars– energy access, energy efficiency, energy sustainability
and energy security.
Energy in general and
hydrocarbons in particular are an important part of my vision for India’s
future. India needs energy which is accessible and affordable to the poor. It
needs efficiency in energy use.
As a responsible global
member of the comity of nations, India is committed to combating climate
change, curbing emissions and ensuring a sustainable future. The launch of the
International Solar Alliance is a step towards fulfilling this commitment.
Currently, India is the
fastest growing large economy in the world. All leading agencies such as IMF,
World Bank, and ADB are estimating India to grow at 7 to 8 percent in the near
future. Our Government has been able to achieve high GDP growth with low
inflation, well controlled fiscal deficit and stable exchange rate. This
macro-economic stability is boosting both consumption and investment in the
India is also blessed with
demographic dividend. The working age population as a share in total
population, is one of the highest in the World. Our Government is boosting
local manufacturing through Make in India and skilling of youth in industries
such as textile, petro-chemical, defence, engineering etc. This, in turn, is
also increasing our energy consumption further.
We have also revamped our
up-stream policies and regulations and brought transparency and competitiveness
in the sector through the launch of Hydrocarbon Exploration and Licensing Policy.
The bidding criteria has
been changed to revenue sharing which will help reduce government intervention.
Currently, a bidding round is open till the 2nd of May. I request you to
participate in our endeavor towards increasing production. The Open Acreage
and National Data Repository will help companies participate in fields they are
interested in and help increase the exploration interest in Indian fields.
The Enhanced Oil Recovery
Policy aims to promote the use of latest technology in improving productivity
of up-stream fields.
Our Down-stream sector has
been completely liberalized with market driven petrol and diesel prices
reflecting the changes in price of crude oil. We have moved towards digital
platforms in fuel retail and payments.
Our government has
encouraged private participation across the entire oil and gas value chain from
up-stream production to down-stream retail.
Our Government believes in
an integrated approach to energy planning. And, our energy agenda in India is
inclusive, market based, and climate-sensitive. This, we believe, would go a
long way towards achieving three energy related components of the United
Nations Sustainable Development Agenda. Namely:
• Universal access to modern energy by 2030;
• Urgent action to tackle climate change - in line
with the Paris agreement; and
• Measures to improve air quality.
We believe access to clean
cooking fuel is very important to improve standards of living. Women benefit
the most from it. It reduces indoor pollution, and hardships faced in
collecting bio-mass and fire-wood. It gives them increased time for further
self-development, and taking up additional economic activities.
In India, through the
Ujjwala Yojana we provide free LPG connections to women from poor households.
The aim is toprovide clean LPG cooking connections to 80 million poor
households.35 million connections have already been provided in less than two
We propose to shift to BS
Six fuels by April 2020,which is equivalent to the EURO Six standards. Our
refineries are under-going massive up gradation. They are on target to meet the
ambitious deadlines to provide clean fuel. In fact, here in New Delhi, we have
already started offering BS Six standard fuel this month.
We have also launched a
vehicle scrapping policy which will help replace old vehicles with cleaner and
energy efficient vehicles.
Our oil companies are
assessing all their investments keeping in view the energy diversification
Today, oil companies are
also investing in wind and solar capacities,gas infrastructure,and also
thinking in the direction of investing in Electric Vehicle and Storage areas.
As we are all aware, we
are now looking towards Industry 4.0, proposing to change the way industry
operates in the future with new technologies and processes like Internet of
Things, Artificial intelligence, robotics process automation, machine learning,
predictive analytics, 3-D printing, etc.
Our companies are also
adopting latest technologies.
This will improve
efficiency, and increase safety and reduce costs not only in down-stream retail
but also in up-stream oil production, asset maintenance and remote monitoring.
In this backdrop, India
provides the perfect setting for hosting this event, to ponder over the future
of the energy sector.To reflect on how global shifts, transition policies and
new technologies will influence market stability and future investment in the
The theme of IEF-16 is
“The Future of Global Energy Security.” I am told that the Agenda aims to
address issues like global shifts in producer–consumer relations, universal
energy access and affordability, and promoting investments in oil and gas to
meet future demand. Maintaining energy security and co-existence of new and
existing technologies are also to come up for discussion. These are all
pertinent subjects for the future of our collective energy security.
I believe that the
discussions at this forum will go a long way in benefitting the world citizens
in accessing clean, affordable and sustainable energy.
I wish you all a
successful and fruitful Ministerial Conference.
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