Notes – India: The Emerging Energy Player

Chapter 1


1 C. Fred Bergsten, ‘The Threat from the Third World,’ Foreign Policy, no. 11, Summer 1973, pp.102–24.

2 Jimmy Carter, State of the Union Address, 23 January 1980,

3 Bruce K. Gagnon, ‘New Pentagon Vision Transforms War Agenda,’

4 Charles W. Dyke, ‘Recent Trends in US Policy in the Persian Gulf and Middle East and US Energy Policy,’ IIEEJ, April 2004.

5 These include ‘Strategic Energy Policy Challenges for the 21st Century’, a joint report by the Baker Institute and the Council of Foreign Relations and the vice presidential task force on energy issues from America. In November 2000, the European Union published a green paper, ‘Towards a European Strategy for the Security of Energy Supply.’ In Japan, in June 2000, METI created an energy security working group. In March 2000, the Asia-Pacific Economic Cooperation Region produced a paper ‘Emergency Oil Stocks and Energy Security in the APEC Region.’ In China during summer a programme of strategic oil stockpiling was initiated.

6 According to the Wall Street Journal, citing a Financial Times report: China’s third-largest oil and natural-gas company is eyeing Unocal Corp., the ninth-largest oil company in the US—the latest sign of how China’s search for oil, commodities and consumer markets is fueling Chinese acquisitions overseas. It should be equally clear to anyone with any sense that any attempt by the Chinese to buy a major US oil company should send shivers through any bureaucrat’s spine in Washington. Besides political repercussions, there are some serious national security issues to consider, given the fact that China is well known to traffic in technology, including nuclear related materials, with countries that the United States describes as ‘supporters of terrorism,’ and ‘rogue states.’ Joe Duarte, ‘China: Expanding into U.S. Oil Sweet Spot?,’

7 Report of the Club of Rome, ‘The Limits to Growth,’ warned about the crisis emanating from the depletion of resources including hydrocarbons.

8 Shokri Ghanem, ‘Are the World’s Oil Resources Limited?’ An OPEC point of view.

9, OPEC bulletin, March 2001, p. 5.

10 P. Webb-Muegge, ‘JODI Aims to Reduce Market Volatility Through Better Oil Data,’ OPEC bulletin, October 2004. Six international organizations are here engaged in efforts to improve the quality, timeliness, coverage and scope of data available to the oil market with the aim of facilitating informed decision-making.

11 ‘New Technologies Key to Upstream and Downstream Success: Global Oil Trends 2002; Rising Competition and Continuing Price Volatility,’ Cambridge Energy Research Associates (CERA).

12 Edward L. Morse and James Richard, ‘The Battle for Energy Dominance,’ Foreign Affairs, March/April 2002.

13 Rilwana Lukman, ‘Energy in the West African Sub-Region in the New Millennium,’ in OPEC bulletin, November 1999.

14 Nader H. Sultan, ‘Global Energy Security: A Strategic Perspective,’ MEES, 24 May 2004.

15 Gal Luft, ‘Needed: Three 1-Billion Barrel Oil Banks,’

16 ‘World Energy Outlook 2004,’

17 Robert Mabro, ‘Does Oil Price Volatility Matter?,’ OIES Monthly Comment, June 2001.

18 Ibid.

19 Ronald Soligo, Amy Jaffe and Peter Mieszkowski, ‘The Political, Economic, Social, Cultural, and Religious Trends in the Middle East and the Gulf and Their Impact on Energy Supply, Security and Pricing Energy Security,’ seminar presented to The James A. Baker III Institute for Public Policy, Rice University.

20 Vahan Zanoyan, ‘Energy Security—The Tables Have Turned,’ MEES, 24 January 2000.

21 Ibid.

22 Shao Da, ‘GCC Eyes Chinese Market,’

23 Arne Walther, ‘Producer-consumer Relations: The Way Forward,’ MEES, vol. 10, 8 March 2004.

24 Maizar Rahman, ‘Examining Current and Future Developments in the World Oil and Gas Market,’ OPEC bulletin, October 2004,

25 Kang Wu and Fereidun Feshraki, ‘Managing Asia-Pacific Energy in the Middle East,’

26 During the last two decades, China has recorded one of the world’s highest growth rates in oil demand in just 10 years. It increased by nearly 57 per cent from 1.66 mb/d in 1982 to 2.61 mb/d in 1992. Between 1993 and 2003, the demand more than doubled to 5.36 mb/d last year. Since domestic production remained stagnant at 3-3.5 mb/d, this led to a sharp boost in its crude imports. According to EIA, by 2002, China’s oil imports have climbed above 1.5 million and hit a record 2.3 mb/d in 2003. In 2025, China’s oil consumption may reach 12.2 mb/d, consequently its import requirements could surge six-fold from 1.5 mb/d in 2001 to nearly 9 mb/d in 2025. Currently, China imports more than two-thirds of its total oil from the UAE and other Gulf countries, and is planning to raise such imports to meet growing demand.

27 ‘Thomas Woodrow Notes in a Jamestown Foundation, Brief,’

28 ‘Oil, Technology, and War in the Next Decade,’

29 Robert A. Manning, ‘The Asian Energy Predicament,’ Survival, vol. 42, no.3, Spring 2000, pp.73–88.

30 Ibid.

31 Ibid.

32 Fereidun Fesharaki, ‘Energy and the Asian Security Nexus,’ Journal of International Affairs, vol. 53. no. 1, Fall 1999.

33 Amy Myers Jaffe, ‘Global Oil Geopolitics Post September 11: Changing Landscapes,’ a post September 11 update report to the James A. Baker III Institute for Public Policy, Rice University.

34 ‘Ally or Foe?’ Shanghai Star, 2002-08-22,

35 In an audiotape last year, Osama bin Laden urged his followers to ‘go on and try to prevent (the West) from getting oil. Concentrate your operations on that, especially in Iraq and the Gulf, the tape said. It was believed to be the first time a purported bin Laden tape had in effect called for attacks on the oil industry. Arab News, 9 February 2005.

36 ‘Addicted to Oil,’ The Economist, 15–21 December 2001, p. 9.

37 Steve Kretzman, ‘Oil, Security, War: The Geopolitics of US Energy Planning,’ Multinational Monitor, vol. 24, no.1, 2, Jan/Feb 2003.

38 See ‘US Department of State’s Patterns of Global Terrorism, 2000,’ ls/pgtrpt/2000/>.

39 ‘Federal Energy Regulatory Commission’: An independent federal agency that regulates the interstate transmission of natural gas, oil and electricity. FERC also regulates the storage of natural gas and the importation of liquefied natural gas. The commission is composed of up to five sitting commissioners who are appointed by the president and must be confirmed by the Senate. The commission is staffed by economists, engineers, attorneys, policy experts and administrative law judges who analyze filings made by industry participants and advise the commission on its decisions.
See ‘In Wake of Attacks, Gas Pipelines Told to Beef Up Security Measures,’ inside FERC’s Natural Gas Market Report Newsletter, September 2001,

40 Ivan Eland, ‘The US Government is Endangering,’

41 Nader H. Sultan, ‘Global Energy Security: A Strategic Perspective,’ MEES, vol. 67 no. 21, May 24, 2004.

42 Gar Smith, ‘Defeat Terrorism: Abandon Oil,’ Earth Island Journal, Spring 2002.

43 J. K. Galbraith, ‘Corporate Power is the Driving Force Behind US Foreign Policy and the Slaughter in Iraq,’ The Guardian, 15 July 2004.

44 Warren Vieth, ‘US Quest for Oil in Africa Worries Analysts, Activists,’ Los Angeles Times, 13 January 2003.

45 Ian Gary and Terry Lynn Karl, ‘Bottom of the Barrel Africa’s Oil Boom and the Poor,’ Catholic Relief Services,

46 Vahan Zanoyan, president of petroleum finance, quoted by Nader H. Sultan in ‘Global Energy Security: A Strategic Perspective,’ MEES, vol. 67, no. 21, 24 May 2004.

47 Robert Mabro quoted by Nader H. Sultan, ‘Global Energy Security: A Strategic Perspective,’ MEES, vol. 67, no. 21, 24 May 2004.

48 Nader H. Sultan, ‘Global Energy Security: A Strategic Perspective,’ MEES, vol. 67, no. 21, 24 May 2004.

49 BP Statistical Review of World Energy, June 2004,

50 ‘Global Oil Trade to Double,’ IEA,

51 Anthony H. Cordesman, ‘Are Energy Wars Still Possible?’ Center for Strategic and International Studies, Washington DC, 2006.

52 Fereidun Fesharaki, ‘Energy and the Asian Security Nexus,’ Journal of International Affairs, vol. 53, no. 1, Fall 1999.

53 Tay Ninh, ‘Modern High-Seas Pirates: Armed and Ruthless,’

54 ‘NOC-IOC Relations and Their Impact on Investment in the Upstream Sector,’ MEES, 12 October 2001.

55 The Venice Meeting 1998,

56 All Rodriguez Araque, ‘OPEC and the Geopolitics of the International Oil and Gas Industry,’ OPEC bulletin, May 2001, p. 6.

57 Gal Luft and Marcus Koblitz, ‘Why the SPR Should Remain Intact,’

58 Ibid.

59 ‘Strategic Petroleum Reserve Update,’

60 David Goldwyn, ‘The US, Europe and Russia: Toward a Global Energy Security Policy,’

61 ‘IEA Cooperates with India on Emergency Oil Stock Issues,’ 8 January 2004,

62 ‘China May Revise Oil Stockpile Target,’ People ’s Daily, 3 September 2001.

63 ‘IEA Expects India and China to Build Strategic Oil Storage Facilities,’

64 David L. Goldwyn, ‘The US, Europe, and Russia: Toward a Global Energy Security Policy,’

65 David L. Goldwyn, ‘The US, Europe and Russia: Toward a Global Energy Security Policy,’

66 Based on Arne Walter’s address to Diplomatic Academy of Austria, January 2005.

67 David L. Goldwyn and J. Stephen Morrison, ‘Promoting Transparency in the African Oil Sector,’ A report of the CSIS task force on Rising US Energy Stakes in Africa, CSIS Africa Programme, March 2004.

68 ‘Energy Security Initiative: Some Aspects of Oil Security 2003,’

69 Syed Rashid Husain, ‘Oil Scene,’ Arab News, 13 January 2005.

70 Huma Siddiqui, ‘India to Host Eurasian Oil Sellers Meet,’