Mains Paper 2: IR | Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests
From UPSC perspective, the following things are important:
Prelims level: Not Much
Mains level: Import of crude oil from the Us is important because of the risks arising out of geo-political disruptions.(for example, happened in case of Iran)
U.S. crude oil
- India has received the first ever shipment of U.S. crude oil of 1.6 million barrels, purchased by state-run Indian Oil Corporation (IOC)
Particulars of the deals
- The shipment is a part of recent commitments to purchase U.S. oil by IOC, Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL)
- IOC has placed a cumulative order for 3.9 million barrels from the U.S.
- While BPCL and Hindustan Petroleum have placed orders for about 2.95 million barrels and one million barrels, respectively
Why is this important?
- The inclusion of the U.S. as a source for crude oil imports by India’s largest refiner will go a long way in mitigating the risks arising out of geo-political disruptions
- According to a. U.S. Embassy, U.S. crude oil shipments to India have the potential to boost bilateral trade by up to $2 billion