Union Minister for Petroleum and Natural Gas Hardeep Singh Puri announced on Monday a major breakthrough the discovery of massive crude oil and natural gas reserves in the Andaman Sea. According to early estimates, the reserves may hold up to 2 lakh crore litres of crude oil, a discovery that could transform India’s energy sector and economic future.
India’s GDP Could Rise Five Times
Speaking about the discovery, Minister Puri said, “If the estimates are correct, India’s GDP could increase nearly five times. This oil reserve could match the scale of Guyana’s recent 11.6 billion barrel discovery. India has been consistently working towards energy self-reliance, and this Andaman oil find is a milestone achievement in that direction. If the efforts succeed, India will gain a new identity in the global energy sector.”
A Big Step Towards Reducing Oil Imports
Experts believe that such a discovery would help India reduce its oil import bill significantly. India currently imports a major portion of its oil needs, making it vulnerable to global supply disruptions. A successful exploration in the Andaman region would not only ensure domestic energy security but also strengthen the country’s economy.
Impact of Iran-Israel War on India’s Energy Security
Meanwhile, global tensions, especially the ongoing Iran-Israel war are raising concerns about oil supply routes. According to a report by the Global Trade Research Initiative (GTRI), the conflict could lead to a possible economic crisis in India due to disruptions in oil trade routes.
The biggest concern lies around the Strait of Hormuz, a narrow channel between Oman and Iran that plays a crucial role in global oil trade. It connects Iraq, Kuwait, Saudi Arabia, Bahrain, Qatar, and UAE with the Arabian Sea. This strait is just 33 km wide at its narrowest point, and about 20 million barrels of oil pass through it every day.
If the Strait is blocked or disrupted, India’s energy imports could become more expensive, adding pressure on the economy.
