Tale Behind India's Oil Reserves
The war on Iran has created oil shortage and oil price hikes. What I missed, in the middle of the war, was that the International Energy Agency (IEA) — the world’s top energy watchdog — asked India to share its oil with the world! Wait a minute. Given that India imports 85% of its oil, how can we possibly have oil to share? What was the basis for the IEA ask anyway? Therein lies a tale, explains Nithin Sasikumar. The story starts way back in 1973, when the Arab countries launched a surprise war on Israel. The US airlifted weapons and supplies to help Israel. The furious Arab states imposed a ban on all oil exports to the US and any Western country that supported Israel. Oil prices in the West quadrupled. Petrol pumps began to run out of oil. The West realized the importance of building an “oil cushion”, oil reserves that could last at least 90 days. They formed the IEA, an agency formed and led by (who else?) the West. “So if a supply disruption were to hit the...