The crude oil price is all time low. It is a golden opportunity for an energy deficit country like ours. We must import and store excess amount of crude as buffer stock to meet future demands. This is the best investment for our forex reserves.
We import 80% of our oil and this bill is almost half of our forex reserves. With buffer storage, we can insure against a future price rise. This simple step can not only ensure energy security but also economic security.
We import 80% of our oil and this bill is almost half of our forex reserves. With buffer storage, we can insure against a future price rise. This simple step can not only ensure energy security but also economic security.
I hope some one in the government is already working on it.
A friend told me that there is a rigid contract between OPEC and Oil importing countries that prohibit such change in demand to keep the price relatively stable and check any windfall gain due to low prices. Its probably more complex than I think. If some one can tell more it would be good.
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