Energy Diplomacy Case Study

7702 Words31 Pages


Introduction to the Study
Energy is a critical element in the march of progress of the Human race where the development would be retarded and life itself would be unbearable if the world is deprived of energy. It wouldn’t be an exaggeration if we say that energy literally drives the global economy. Every advanced economy has required secure access to modern sources of energy to strengthen its development and growing prosperity. Wheth¬er it comes from advanced nuclear reactors in devel¬oped nations or simple woodstoves in the developing world, energy is recognized as vital to human welfare. It influences the economic, political, and social poli¬cies of every nation. Possessing or not possessing sufficient
…show more content…
In a welcome development, the Ministry of External Affairs has upgraded the energy security unit to a full-fledged division. India is participating in a number of international forums concerned with energy issues.
Energy diplomacy is currently being seen as a major tool for ensuring India’s energy security along with the acquisition of equity shares in oil and gas reserves overseas. “Energy diplomacy” has become a catchphrase in government circles in Delhi—not just in the MPNG but also in both North Block and South Block, where the ministries of Finance and External Affairs are housed.
The business sector is not far behind with the chairman of Shell India calling for the creation of a cadre of “Energy diplomats . . . people who can combine professional understanding of the industry with the capability to work across different cultures and a plurality of sovereignties. Former petroleum minister Aiyar even formed a group to advise the government on energy
…show more content…
Both countries have set up joint ventures such as the Irano-Hind Shipping Company, the Madras Fertilizer Company and the Chennai Refinery. Indian companies such as TATA, ESSAR, OVL, etc have a presence in Iran. Iran currently supplies about 18 percent of India’s oil imports, a figure set to grow markedly in the next five years as India pushes ahead with plans to substantially boost its refinery capacity for Mideast crude. In the past year, Hindustan Petroleum Corp., India’s state-owned oil company, has tripled the amount of Iranian oil it imports. India also wants to purchase Iranian natural gas and has invested heavily to help Iran develop its gas fields, as well as to upgrade the port facilities at Chabahar on the Gulf of Oman—the nearest point for Natural gas trade between India, Iran, and Pakistan challenges the geopolitical, historical, and strategic realities of the three countries and the general regions of the Mideast and Asia. In this way, the relationship between the pipeline venture and globalization is multidisciplinary. It is not characterized solely by economic factors, even though the current economic realities in Iran, India, and
Open Document