Speech by Hon'ble President of India, Shrimati Pratibha Devisingh Patil, at the Inaugural Function of the Golden Jubilee Celebrations of Indian Oil Corporation Ltd.

Ladies and Gentlemen,

It gives me great pleasure to participate in the inauguration of the Golden Jubilee Celebrations of the Indian Oil Corporation. Fifty years of this organization are symbolic of India's efforts to build its own energy industry with a view to achieving self-sufficiency and thereby, meet the strategic requirement of energy security. When the Indian Oil Corporation came into existence in 1959, the country's domestic oil sector was almost non-existent. We can be proud that today India has home-grown energy companies in exploration, production and distribution of oil and gas, which are world class.

Energy has an intrinsic link with the entire economic activity of the country. It is considered to be the very engine that drives economic growth. Its availability is the key to sustainable development and has a direct impact on the quality of service in the fields of education, health, transport, housing and food security for citizens. Inadequacy of energy supply would indeed, adversely affect these vital and essential requirements of any society.

The International Energy Agency has, in its recent outlook, envisaged that the global primary demand for energy will grow, on an average, at the rate of 1.6 percent per year till 2030. This increasing demand raises questions about how energy requirements will be met over a long period of time in a scenario of, one - limited global reserve of fossil fuels, currently the major source of energy; two - unstable prices of fuel oil; three - where a large number of people still do not have access to energy supply and four - growing environmental concerns. For nations, energy security which implies reliable supply of energy at affordable prices to cater to the needs of all citizens assumes a central position. In fact, energy security has now definitely entered the lexicon of most nations as they pursue their development and welfare objectives. Enhancement of energy security will require appropriate choices of energy sources to meet economic needs; making energy accessible to all its citizens to meet the principles of equity; and to adopt technologies that promote efficiency in the energy sector in upstream and downstream activities, as well as take into account environmental concerns.

It must be recognized that for achieving energy security comprehensive energy policies at international, regional and national levels will need to be pursued. The volatility in oil prices, including the price spurts of last year when they hovered close to US $ 150, bring to mind the challenges one faces. Cooperative framework through greater dialogue and openness in the global energy market will ensure the long-term interest of both producers and consumers.

As India accelerated its growth momentum, there has been a corresponding increase in our energy requirements. India stands as the 12th largest economy in the world. With over a billion people, it supports 17 percent of the global population and, therefore, needs to be assured of the availability of energy to sustain its growth to meet the aspirations of the people. Post-independence, when faced with food shortages we, via the Green Revolution route, attained self sufficiency in food grains. The White Revolution resulted in making India the largest producer of milk and milk products. It is time now for an Energy Revolution that will ensure our energy security, and reliably meet the demand for energy services of all its sectors and people. Meeting this vision requires that we pursue all available fuel options and forms of energy, whether conventional, non-conventional, new or emerging as only a multi-pronged strategy that can better provide for stable energy situations. It needs to be examined what can be the most efficient and productive mix of energy sources and how in the national energy grid, conventional and non-conventional forms of energy can complement each other.

We must step up exploration efforts to find more coal, oil and gas and augment renewable sources of energy. As Indian Oil owns and operates 10 of India's 20 refineries, accounting for 34 percent of the national refining capacity, I am sure that the nation can count on its contribution in increasing production. Although our primary dependence on fossil fuels is likely to continue in the foreseeable future, other energy resources - including hydro-electricity, wind, solar, nuclear energy and bio-fuels - would occupy more space in the energy mix. Environmental concerns as well as the finite supply of fossil fuels will be factors that will propel decisions in this direction.

The principle of equity in energy is important. Our fundamental objective is to secure access to energy for all at affordable prices. The challenge of how to reach energy to all households would require proper distribution systems for electricity and power. The recurrent shortages faced every year during the summer can be avoided with proper planning at every level from power generation, to transformer maintenance to distribution at the household level. The original mandate of Indian Oil was to reach petroleum products to every nook and corner of the nation. It is heartening that Indian Oil has a countrywide marketing infrastructure, with its sales points all over the country. Indane LPG cooking gas of Indian Oil, I understand holds the world record for the largest network of packed LPG supplies. I am also happy that to cater to the rural populace, it has established the one-stop convenience shops in the form of Kisan Seva Kendras, offering a variety of products and services, besides auto fuels and kerosene.

We need to use our energy resources optimally and efficiently. A trend evident has been a reduction in the energy intensity of our economy, which has been falling and is about half of what it used to be in the early seventies. This makes India a country that has a less intensive path of development. Using energy carefully without wasting it is important in the context of better energy consumption patterns. A unit of energy saved by a user is greater than a unit produced, as it is cost saved on production, transport, transmission and distribution. Energy conservation must be an integral part of the energy security efforts of our nation. Hence, even as we take steps to increase generating capacity, it would need to be accompanied by efforts for conservation of energy at every level. This is a national responsibility and would require contribution from all individuals, all industries, and all sectors of the economy.

Measures have been taken in this regard. An energy labeling programme for appliances was launched in 2006. Comparative star-based labeling has been introduced for electric appliances providing information about energy consumption and thus, enabling consumers to make informed decisions. The Energy Conservation Building Code launched in May 2007, promotes the design of new, large commercial buildings to optimize the building's energy demand. Steps like these must continue.

No discussion on energy security can be complete without reference to the critical role of Research and Development. Innovative technologies are needed for making oil drilling more economical, clean coal technologies, more efficient furnaces, cost effective renewable energy. I would, therefore, urge that technological upgradation and research be given the utmost attention. A more vibrant and active collaboration of industries with academic and research institutes should also be forged.

Focus on the energy sector is likely to drive a huge demand for skilled and trained technical personnel. Moreover, it is estimated globally that a significant portion of the critical skill-holders in the industry will retire in 10 years, making it vulnerable to a talent shortage. A challenge for Indian energy companies will therefore be, to prepare the next generation of technologists. A good beginning has been made in the past decade with the setting up of institutions dedicated to petroleum studies but there should be more efforts in this direction.

A globalised world has resulted in more complex inter-linkages in the energy sector. Indian national oil companies, therefore, should participate in global operations and optimize arrangements with overseas partners. Indian Oil with its teams of scientists, engineers and managers can be a significant player in the global expansion of the nation's oil and gas sector.

I conclude by wishing Shri Murli Deora, Minister of Petroleum and Natural Gas, Shri Jitin Prasada Minister of State and Indian Oil and its team success in all their endeavours. I am confident that when Indian Oil celebrates its centenary, it will have the satisfaction that it was able to pursue many new pathways and play its part effectively in transforming India into one of the world's leading economic powers.

Thank You,  
Jai Hind.