With the oil and gas fields across West Asia getting attacked as a result of Iran-US-Israel conflict, the question of transitioning to the renewables has emerged again. It is being argued that with the rising oil prices and scarcity of gas, inflation is likely to rise. According to some analysts, this may trigger a rise in cost of manufacturing renewables as well. However, transitioning to renewables is still a welcome strategy to move away from oil and gas dependency.
Some countries such as Angola and Indonesia have accelerated offshore oil and gas explorations in their ocean waters. This may offset their dependency on the West Asian oil to some extent. US happens to be the largest single country to produce oil and gas, having wells at Alaska, Texas and elsewhere. Currently, the US is said to produce 22% of the total oil and gas production in the world. It is said that rising oil prices may initially benefit the US economy, as it is likely to make profit from oil exports . However, a prolonged raised oil prices will eventually lead to rise in inflation and an economic downturn.
Countries such as India which are totally dependent upon oil and gas imports, as they don’t have their own oil and gas production, are likely to face a severe crisis imminently. Raised oil and gas prices will not only lead to inflation, but will also make other markers of economy short and slow down the industry.
In such a situation, it is better for India to –
–Accelerate the renewables production.
–Delink India from the Global economy as much as possible. Stress should be on handmade indigenous products.
–Make in India scheme should benefit the Indian manufacturers on a priority basis. Manufacturing should be encouraged in India, not just an assembly of imported parts.
–Attempt to explore for offshore oil and gas reserves in its own sea waters.–Increase purchase of oil and gas from Oman if possible to get the country out of the crisis.
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