RAM NAIK MOOTS SEVEN POINT AGENDA FOR OIL INDUSTRY
TO BUILD A FUEL PORTFOLIO WITH SUSTAINABLE DEVELOPMENT
Shri Ram Naik, Minister of Petroleum & Natural
Gas, has identified seven focus areas for oil industry to seek
alternative ways of doing business which will have the least impact
on environment and also help build a portfolio of fuels to suit
the emerging needs of society. Shri Naik said this while chairing
the Second Plenary Session of the 17th World Petroleum Congress,
late last evening at Rio de Janeiro, Brazil. "While growth in
consumption of fossil fuel world over warrants a potentially adverse
climatic impact, there does not seem to be a practical, economical
substitute for this form of energy at this moment", Shri Naik
added. The seven point agenda on which the oil industry needs
to focus its attention are:
- Continue the efforts to reduce pollution and waste, improve
quality of effluents and recycle resources and promote conservation
- Share industry best practices, cleaner technologies, environment
and efficiency projects so as to quickly multiply the benefits
obtained by individual companies
- Promote initiatives to reduce greenhouse gas emissions in
atmosphere
- Initiate efforts to further improve gasification technologies
to upgrade the existing fuels
- Take into account the sustainability needs of the surroundings
in sourcing raw material, methods of extraction and means of
processing, minimise impact on local eco-systems
- Gradually move towards pricing of materials at their ultimate
cost, taking into consideration the value of their replacement
and disposal, instead of merely the cost of acquisition
- Promote projects aimed at protecting bio-diversity and mass
awareness about sustainable development
Shri Naik further said that India has taken several
initiatives for introducing environmental friendly fuels in the
country. Petrol with 500 ppm (.05%) sulphur and 1%benzene as well
as diesel with 500 ppm (.05%) sulphur complying to Euro II standard
has been introduced in the metro cities. It is proposed to supply
fuel conforming to Euro III norms in the metro cities and Euro
II norms in the rest of the country by the year 2005. The initiatives
on environmental concerns by oil industry date back to 1931 when
Brazil mandated use of 5% ethanol for blending in gasoline. Brazil
today has the largest ethanol programme in the world and has been
the role model for other countries. India has entered into a Memorandum
of Understanding with Brazil for sharing of technology on long
term basis. After commissioning several pilot projects, the Government
of India has now mandated the use of ethanol at 5% for blending
with petrol in 9 States from 1st January 2003 which
puts the requirement of ethanol at 320 million litres annually.
This programme would be gradually expanded to cover the rest of
the country and also may include the increase in blending ethanol
upto 10%. Besides, R & D studies have been undertaken for
use of ethanol in diesel as India consumes large quantities of
diesel.
The visiting Indian Minister has also made a
case for the industry and business to take lead of the movement
for sustainable development by proactive action as the industry
is well positioned to play a pro-active role in addressing the
issues of sustainable development. Otherwise, the growing interest
of civil society, Governments and academic institutions in these
issues may prompt them to take antagonistic and combative stands
against industry and business on matters concerning environmental
regulations. As the 500 largest companies in the world control
about 25% of the world’s gross output, the industry can herald
the movement. "In the long run it makes good business sense for
companies to holistically integrate the concept of Sustainable
Development into their corporate vision, Mission and strategies;
the earlier they begin this exercise, the more benefits they will
reap in the future", Shri Naik emphasised. The Petroleum Minister
observed that as the years pass, the sustainability movement is
bound to bring issues impacting the health of population, pollution,
bio-diversity, petroleum, water, food and basic human rights increasingly
to the fore.
The Plenary Session, chaired by Shri Naik, had
the theme of "The World Summit on Sustainable Development: The
Petroleum Industry, Perspective and Response". The keynote speakers
at this session were Mr. Einaar Steensaes, Minister for Petroleum
and Energy, Government of Norway and Mr. Lew Watts, Director,
Africa, Latin America and Mediterranean Rim, Shell gas and Power,
U.K. The 17th World Petroleum Congress is being attended
by over 3200 delegates from more than 70 countries all over the
world.
