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India looks to double oil imports from the US

In order to reduce its reliance on crude oil produced in the Middle East, India is looking to source more oil from other regions, including a doubling of the crude oil it imports from the US.

After the United States and China, India is the world’s third-largest consumer of oil, but lacks the degree of energy independence of its rivals. More specifically, the US has a booming oil industry, with operators like BP, which owns the Castrol lubricant brand, growing production year on year, particularly for shale oil. China, meanwhile, has acquired oil and gas deposits in other countries. In contrast, India is left largely dependent on oil produced in the sometimes unstable Middle East.

Speaking anonymously, three officials are reported as saying that the country is looking to increase its oil imports from the US, as well as pursue long-term supply contracts with Russia and African producers. One of the three anonymous officials said:

“We can easily double our crude oil imports from the United States to 12 million tons. We are in talks with the U.S. government and private oil companies because oil is an unregulated business in this country. We expect good prices and better conditions from American companies.”

The official added that India can offer a stable market in return for favorable pricing to compensate for the higher transportation costs.

In addition to diversifying its basket of crude oil sources, India has been making efforts to introduce more renewable energy into its energy mix.

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