Prime Minister Narendra Modi and US President Donald Trump harped on the deepening energy ties between India and the US on Tuesday, though a broader free trade agreement seems a long way off after Trump’s two-day trip to the country.
US oil supplies to India have jumped 10-fold to 2,50,000 barrels per day (bpd) in the last two years as New Delhi strove to reduce its dependence on its traditional suppliers.
Speaking at a business meeting alongside President Trump, US energy secretary Dan Brouillette said India imported 25,000 barrels per day of crude oil from the US in 2017.
“In the last two years, we have seen a remarkable offtake in the US oil and gas by India, from 25,000 bpd in 2017 to 250,000 bpd now, a 10-fold increase and we expect it to be better from here,” he said.
Trump remarked that energy trade is “going up very very rapidly”. “Thank you very much Dan. Really great job,” he said.
“Our strategic energy partnership is growing stronger. This is helping to improve bilateral investments. For oil and gas, US has become a major source. In last four years, our total energy trade has been $20 billion. Renewable or nuclear energy, our cooperation is getting new energy,” Modi said.
The US is India's sixth-largest oil supplier.
India began importing crude oil from the US in 2017 as it looked to diversify its import basket beyond the Opec nations. It bought 1.9mt (38,000 bpd) of crude oil from the US in 2017-18 and another 6.2 mt(1,24,000 bpd) in 2018-19.
In the first six months of the current fiscal (2019-20), the US supplied 5.4mt.
Speaking at a separate India-US business summit, India’s oil minister Dharmendra Pradhan said the US emerging as the 6th largest source for crude oil imports for India was a significant development.
“India is also now the 4th largest export destination for US crude,” he said. “Our LNG imports from the US are also increasing progressively ever since the imports started in March 2018. India is now the 5th largest destination of US exports of LNG.” Pradhan, who met the US energy secretary on Monday, said India’s bilateral hydrocarbon trade has increased exponentially during the last three years and it touched $7.7 billion mark last year, accounting for 11 per cent of total two-way trade.
Iraq is India’s top crude oil supplier, meeting close to one-fourth of the country's oil needs. It sold 26 million tonnes of crude oil to India during April to September. Saudi Arabia has traditionally been the top oil source but has been relegated to the second spot, exporting 20.7mt in the first six months.
India, which is 83 per cent dependent on imports to meet its oil needs, bought 111.4mt of crude oil from overseas during April-September.
On talks between Trump and Prime Minister Narendra Modi earlier in the day, the minister said both the leaders have again emphasised the importance of further strengthening the energy pillar of the bilateral strategic partnership. “The high importance attached to the energy component of our bilateral engagement is rather evident from positive developments during the last three years under the India-US strategic energy partnership,” he said.
The two countries, Pradhan said, were planning the next ministerial meeting of their strategic energy partnership in April for deepening the engagement at the government and industry levels.
The energy ties between the US and India are set to scale up bilateral trade and investment as the country diversify its sources of oil and gas imports and also balance the trade with Washington.
“Our strategic energy partnership is growing stronger. This is helping to improve bilateral investments. For oil and gas, US has become a major source. In last four years, our total energy trade has been $20 billion. Renewable or nuclear energy, our cooperation is getting new energy,” Prime Minister Narendra Modi said at a joint press briefing with visiting US President Donald Trump.
India wants to diversify its sources of oil and gas imports which will give New Delhi more bargaining power while dealing with traditional suppliers. The energy trade between India and the US has over the last four years touched $20 billion.
Speaking at a separate Indo-US business summit, India's Oil Minister Dharmendra Pradhan said the US emerging as the 6th largest source for crude oil imports for India is a significant development.
”India is also now the 4th largest export destination for US crude,” he said. “Our LNG imports from the US are also increasing progressively ever since the imports started in March 2018. India is now the 5th largest destination of US exports of LNG.”
Pradhan, who met the US Energy Secretary on Monday, said India's bilateral hydrocarbon trade has increased exponentially during the last three years and it touched USD 7.7 billion mark last year, accounting for 11 per cent of total two-way trade.
”These developments are reflective of a new and emerging dynamic between the two countries,” he said. “Both Secretary Dan Brouillette and I have agreed that there is a need now to develop industry-level engagements for technology infusions as well as investment partnerships in the energy sector.”
US oil supplies to India have jumped ten-fold to 2,50,000 barrels per day (bpd) in the last two years in signs of growing energy ties between the two nations.
Speaking at a business meeting alongside US President Donald Trump, US Energy Secretary Dan Brouillette said India imported 25,000 barrels per day of crude oil from the United States in 2017.
”In the last two years, we have seen a remarkable offtake in the US oil and gas by India, from 25,000 bpd in 2017 to 250,000 bpd now, a 10-fold increase and we expect it to be better from here,” he said.
Trump remarked that energy trade is “going up very very rapidly”. “Thank you very much Dan. Really great job,” he said.
The US is India's sixth-largest oil supplier. India began importing crude oil from the US in 2017 as it looked to diversify its import basket beyond the OPEC nations. It bought 1.9 million tonnes (38,000 bpd) of crude oil from the US in 2017-18 and another 6.2 million tonnes (1,24,000 bpd) in 2018-19.
In the first six months of the current fiscal (2019-20), the US supplied 5.4 million tonnes (MT) of crude oil to India.
Iraq is India's top crude oil supplier, meeting close to one-fourth of the country's oil needs. It sold 26 million tonnes of crude oil to India during April to September. Saudi Arabia has traditionally been India's top oil source but has been relegated to the second spot, exporting 20.7 million tonnes of crude oil in the first six months.
India, which is 83 per cent dependent on imports to meet its oil needs, bought 111.4 million tonnes of crude oil from overseas during April-September.
Investment
US President Donald Trump wooed Indian industry leaders to invest more in America, promising to reduce more regulations in his country as he looked for overseas investment to boost the economy there.
Speaking at a high-profile CEO round-table which included captains of the Indian industry such as Reliance Industries Chairman Mukesh Ambani, Mahindra Group Chairman Anand Mahindra, Tata Sons Chairman N Chandrasekaran and Aditya Birla Group Chairman Kumar Mangalam Birla, Trump reassured that regulations “will only get better” for investment in the US.
The Indian industry leaders apprised the US President of their ongoing respective businesses and investments in the country. “I want to thank you all. Congratulations on your success. Hope you come to the United States and invest more billions because I view it not as billions, I view it as jobs. We have great people...,” he told the gathering.
When pointed out that businesses still have to go through regulatory challenges -- especially administrative and in the legislative environment -- in the US, Trump said, “Some of the regulations you have to go through are statutory process ... We are going to cut lot more regulations ... A lot of them will be cut and you will see a big difference and it will only get better.”
Stressing on the need for companies of the US and India to invest in each other's country, Trump said governments can only aid in creating jobs and it is the private industry that actually creates jobs.
