New Delhi: Petroleum and Natural Gas Minister Murli Deora Monday stressed the need for maintaining a 5.8% annual growth rate of primary energy supply to sustain about 9% economic growth for the next 25 years, to eradicate poverty and meet human development goals.
“India needs to sustain economic growth of at least 9% over the next 25 years if it is to eradicate poverty and meet its larger human development goals. The primary energy supply must increase at the rate of 5.8% annually for fuelling the growth,” Deora said while addressing a session at Petrotech-2009.
The minister said, “The more we can do to understand and remove the factors which constrain the global energy supply system and lead to increased market volatility, the better positioned we well be to meet the future energy requirements of a dynamic and growing global economy.
“We all have stake in ensuring the availability of energy at a reasonable price for future generations.”
Concerned at the volatility in crude oil prices in the international market, he pointed out, “Experience has taught us that very low prices and very high prices are not sustainable. During periods of low oil prices, capital tends to move out of energy to sectors offering higher returns.
Low-priced energy encourages greater consumption. By reducing investment and increasing demand, periods of low prices have set the stage for an inevitable corrective rise in prices.”