• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

101 Inspirational August Quotes for a Happy and Positive End to the Summer

May 27, 2025

125 Friendship Day Quotes to Help You Express Your Love and Gratitude to Your Friends

May 26, 2025

Corporate America Retreats From Gay Pride Events Across US Amid Trump DEI Crackdown

May 24, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Tuesday, May 27
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    Corporate America Retreats From Gay Pride Events Across US Amid Trump DEI Crackdown

    May 24, 2025

    New AI Model Would Rather Ruin Your Life Than Be Turned Off, Researchers Say

    May 23, 2025

    Pharma Giant Buys Bankrupt DNA Collection Company, Acquiring Access To Largest Genetic Database On Earth

    May 20, 2025

    EXCLUSIVE: Massive Telecom Merger Champions Workers In A Way Biden Admin Never Could, FCC Chair Says

    May 20, 2025

    China’s Economy Stumbles As It Fails To Shake Off Trump’s Tariff Gut Punch

    May 19, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»How Trump’s Pursuit of Cheap Oil Will Impact India’s Energy Security
Finance

How Trump’s Pursuit of Cheap Oil Will Impact India’s Energy Security

February 13, 2025No Comments6 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
How Trump’s Pursuit of Cheap Oil Will Impact India’s Energy Security
Share
Facebook Twitter LinkedIn Pinterest Email

To fulfill one of his major electoral agendas of providing cheap oil (“drill baby drill”), in his inaugural speech U.S. President Donald Trump argued for increasing the domestic production of crude oil and utilizing it to spur prosperity in the U.S. economy.

His message of promoting carbon-intensive fossil fuels is detrimental to global decarbonization initiatives and climate change mitigation measures. 

Trump’s appeal to U.S. oil producers to extract more oil may have significant implications for the global energy market, including Russia. The U.S., being the single largest oil-producing country (it produced 19,358 thousand barrels per day in 2023 with a global share of 20.1 percent), has substantial power to influence the global oil market. The increase in U.S. oil production could lead to a surge in global energy supplies, potentially driving down prices. 

However, as a production cartel, the Organization of the Petroleum Exporting Countries (OPEC) with a global share of 35.3 percent (in 2023) or OPEC+ (OPEC+Russia, Mexico and a few others with a global share of 54 percent) has relatively better control over global oil production and prices.

Russian Oil

Any reduction in crude oil prices in the global market is expected to have an adverse impact on the Russian economy. It is heavily reliant on oil and gas exports especially now that it is at war with Ukraine. Russia’s economy is constrained by several restrictive measures imposed by various European countries and the United States. 

Lower crude oil prices could reduce Russia’s revenue from energy exports, potentially affecting its ability to fund domestic programs and military expenditures. However, the actual impact of Trump’s announcement on Russia will depend on other factors as well. These include the global demand for oil and alternative sources of energy, the response of other energy-producing countries (especially OPEC), the response of U.S. domestic producers, and the effectiveness of various energy sanctions on Russia.

See also  Investors brace for jump in oil prices after Israel declares war on Hamas

OPEC and Price Stability

On the other hand, this announcement is unlikely to have any significant impact on OPEC’s oil production decisions and pricing strategies. 

Historically, as a cartel, OPEC has usually adjusted its production levels to maintain crude prices and stabilize the global crude market. Thus, it is likely that OPEC members will continue to stand together and adopt appropriate measures as a response to any unilateral changes in U.S. oil production. 

According to Gordon Kaufman, a petroleum industry expert at the Massachusetts Institute of Technology, in case there is an increase in U.S. oil production, as a countermeasure, the OPEC members, especially Saudi Arabia (which holds a 12 percent share in global crude extraction), may even reduce their own production to keep global prices stable.  

Even Exxon, a major U.S. oil and gas producer, does not expect an actual ramp-up of oil production by U.S. companies in response to Trump’s policies.

Impact on India

In spite of being the third-largest crude oil importer (accounting for 10.3 percent of global crude imports in 2023), India is a price taker in the global crude market and has no control over crude prices. India’s sources of crude import are quite diversified, but its import dependency for crude oil was as high as 88 percent in 2023-24.

Due to recent developments in global geopolitics (disturbances in the Middle East and the Russia-Ukraine war), Russia has become a major source of crude oil imports for India, with reduced imports from Middle Eastern countries. 

In 2022, after Russia invaded Ukraine, the European Union imposed a price cap on crude imports from Russia. In response, Russia offered a substantial discount on its crude oil compared to global Brent crude prices. The discount on crude oil offered by Russia was as high as $15 to $20 per barrel (compared to the spot price).

See also  Top 15 companies to work for in Singapore in 2023

India has taken advantage of this, citing its unavoidable dependency on crude imports. In 2021-22 Russia’s position was ninth with a 2 percent share in India’s crude imports. Due to huge crude imports from Russia at a discounted price, Russia’s share increased to 33 percent in 2023-24, making it the largest import source for India followed by Iraq (21 percent), Saudi Arabia (16 percent), the UAE (6.4 percent) and the U.S. (3.6 percent). In 2023-24, crude oil imports ($139.3 billion) accounted for  21 percent of India’s total imports ($678.2 billion). 

Thus, a sizable portion of the Indian government expenditures go toward crude imports, not including imports of various petroleum products. On the other hand, the export of refined oil products is a major source of revenue earnings for India. In 2023-24, the total import of petroleum products (other than crude imports) was worth $23.3 billion (including $10.5 billion of LPG) while exports amounted to $47.7 billion (including $22.1 billion of high-speed diesel and $11.2 billion worth of motor spirit).

Trump’s pursuit of cheap oil could have both stimulating and adverse implications for the Indian economy. Any reduction in global crude prices will certainly benefit the Indian government’s exchequer and provide a higher margin to domestic oil companies in India. 

However, this clear promotion of a fossil fuel-driven economic growth strategy by the U.S. president would pose significant challenges to India and other developing countries, which are most vulnerable to the threat from climate change and global warming. Moreover, the U.S. withdrawal from the Paris Climate Agreement under Trump 2.0 will also impact global initiatives for carbon neutrality.  

India is already experiencing various adverse effects of climate change such as intensified extreme weather events and adverse impacts on its agricultural productivity and public health. India had announced its aim of achieving a net zero emission target by 2070 in COP26 and adopted various measures to decarbonize its economy, especially the energy sector.  

See also  Russia Ships Oil to China Across the Arctic

The Indian economy is heavily dependent on fossil fuels. The transport sector in particular depends significantly on imported crude oil and gas. However, the recent progress of India toward decarbonizing its transport sector is impressive. Electric vehicle (EV) sales in India increased from 1.53 million units in 2023 to 1.95 million units in 2024 which was 7.44 percent of the total vehicles sold in 2024. Other than EVs, increasing penetration of compressed natural gas (CNG) in the transport sector, a mandate for biofuel blending, and the introduction of hydrogen fueled vehicles (mostly in the pilot stage) are other major steps toward decarbonization of the transport sector in India.

The major challenge of decarbonization through renewable energy in India is meeting large energy demands with a reliable source of energy. Renewable energy is characterized by intermittency of generation. 

Moreover, the availability of critical minerals plays an important role in renewable-based energy technologies. The global market for critical minerals is very concentrated and primarily dominated by China. Since India does not have sufficient critical minerals, its import dependency on China for critical minerals will pose a substantial challenge to its energy security. 

However, as indicated in this year’s budget, India is targeting 100 GW of nuclear capacity by 2047. Unlike renewables, nuclear energy (with appropriate safety measures) as a non-fossil source can provide a reliable energy supply and ensure energy security. 

Trump’s “drill baby drill,” therefore, is unlikely to have much of an impact on India’s energy security. 

Originally published under Creative Commons by 360info™.

cheap energy Impact Indias Oil pursuit security Trumps
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

China’s Economy Stumbles As It Fails To Shake Off Trump’s Tariff Gut Punch

May 19, 2025

Senator Murphy Tries To Ban Trump’s Meme Coin With ‘MEME Act’

May 6, 2025

Trump’s Tariffs Trigger Turmoil In China As Country’s Economic Tailspin Intensifies Per New Data

May 6, 2025

American Manufacturers Overwhelmed With Orders After Trump’s Tariff Crackdown On China

May 5, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Economy at critical juncture in inflation fight: central-bank body

June 26, 2023

Wall Street tumbles, Treasury yields gain as focus turns to Fed

September 16, 2023

SoFi Stock Falls After Student Loan Forgiveness Decision

June 30, 2023

Gwyneth Paltrow Tells Court Hit-and-Run Ski Collision Wasn’t Her Fault: I Felt ‘Violated’

April 1, 2023
Don't Miss

101 Inspirational August Quotes for a Happy and Positive End to the Summer

Lifestyle May 27, 2025

August has arrived. With days that are still warm and sunny but also with a…

125 Friendship Day Quotes to Help You Express Your Love and Gratitude to Your Friends

May 26, 2025

Corporate America Retreats From Gay Pride Events Across US Amid Trump DEI Crackdown

May 24, 2025

Trauma Healing Through Tantric Work

May 24, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,131)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,645)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

“She was limping” – WWE Universe speculates that former Women’s Champion suffered an injury at WrestleMania 39

April 3, 2023

Riley Gaines Blasts Venus and Serena Williams for Not Standing Up for Women in Trans Sports Debate: ‘Scared of Cancel Culture’

May 13, 2023

‘Immediately Caught On’: Hawaii State Rep Slams Developers For Sweeping In ‘Like Vultures’ To Buy Land

August 29, 2023
Popular Posts

101 Inspirational August Quotes for a Happy and Positive End to the Summer

May 27, 2025

125 Friendship Day Quotes to Help You Express Your Love and Gratitude to Your Friends

May 26, 2025

Corporate America Retreats From Gay Pride Events Across US Amid Trump DEI Crackdown

May 24, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.