Tribune News Service
New Delhi, July 18
As a sign of confidence in Washington, India decided to store emergency reserves of crude oil in American salt caverns. According to the available information, India will be the first country to offer oil storage facilities in the United States.
Maintaining oil reserves is not a new concept, but storing another country’s emergency energy supplies denotes a high degree of confidence that the country that maintains the reserve will actually return it during an emergency.
India has offered its storage facilities to the United Arab Emirates and Saudi Arabia, while Japan, New Zealand and South Korea have an agreement to take advantage of each other’s reserves if necessary.
India and the United States have signed a memorandum of understanding to develop a strategic oil reserve and the two countries are at an advanced stage of discussion to store crude oil in the United States to increase India’s reserves, the oil minister said on Friday. and Gas Natural de la Unión, Dharmendra Pradhan. The memorandum of understanding was signed after Pradhan co-chaired a virtual Ministerial of Strategic Energy Partnership between the US and India with US Secretary of Energy Dan Brouillette.
The United States began to pay renewed attention to the accumulation of more reserves after the pandemic. On March 19, the President of the United States, Donald Trump, ordered to buy oil from local producers and fill the strategic reserves to their maximum capacity.
Stock up on emergency
Maintaining oil reserves is not a new concept, but storing another country’s emergency energy supplies denotes a high degree of confidence that the country that maintains the reserve will actually return it during an emergency.
