New Delhi, December 25
The prices of crude oil may touch $100 per barrel mark, if designate US President Donald Trump decides not to increase the production of oil and gas.
Talking to UNI, Pradeep Gupta, Executive Director, Jagson International said, “With regards to fluctuations in prices of crude oil, everything depends on the United States’ decision combined with the Russian’s who holds a large reserve of Oil and Gas.” Jagson International Limited, a company based in New Delhi and Mumbai, is a one of the first private sector companies to enter into the field of off-shore drilling for oil and gas exploration, which was hitherto a forte of foreign companies only.
Mr Gupta also said that the crude oil prices are very important for the country as they play vital role in the growth of the economy. “We import huge quantity of oil and gas from middle east and some other countries which impact our trade balance,” he added.
He is of the opinion that even in next 25-30 years, oil and gas will be the main source of the India’s energy requirement as development of alternative resources are either in the initial stages or commercially not viable.
Mr Gupta said though Government has done a lot in the field of oil and gas exploration sector, but a lot is still to be done. A huge capital investment is required by the Government and its companies itself to promote Indian private sector to come up in deep water oil and gas exploration.
Emphasising the need of technological development in this field, he said, “As on date we lack technology. Most of the latest technology is with foreign companies and we are at their mercy to get it. If we develop our own technology, only then oil and gas exploration will become cheaper.” On the issues related to viability of operations, he said that the low crude oil prices are major concern for the companies engaged in the field of oil and gas exploration. To sustain in the field, a minimum price of 60 dollars per barrel is needed. Below this level it will not be viable as import will remain cheaper. This will hamper the aim of becoming a self sustainability in this field.
On the current scenario, he said that in recent days, the crude oil prices have gone up and it is believed that it may go up further as OPEC countries are not increasing their productions. But their decision will impact it marginally as Russia and US holds the huge reserves. Once they decide to flood the market with their production, crude oil prices will tumble again.
He said, “Donald Trump is supposed to take charge of the US President and has to take a decision on this issue too. So the world market is waiting for his decision and the reaction of Russia on it. Only then one can say whether the prices will go up or down or will remain at the present level.”
New Delhi, December 25