India could save $80 billion annually if oil prices stay at the current 12-year low. Policy-makers must use this opportunity to lock-in energy prices for the long-term. Financial markets, through futures and options, offer a way to make these savings permanent, and the Ministry of Finance must formulate ground rules for hedging.
Developments in electric vehicles, battery technology, and renewable energy can make oil, coal, nuclear power interchangeable, if the appropriate technology is developed and marketed well. And since the benefits include a permanent cap on energy prices, India must promote its own industries in these areas and not remain a passive beneficiary.
Gateway House's Director Neelam Deo was quoted in an article published by Afternoon Despatch & Courier. She highlights the instability in the Middle East, the effects of a stablising Libya, and the need for oil and gas reforms.
What are the implications of the political unrest in the Middle East and North Africa on the global oil market?