India turns to Turkey for Lifegiving Oil

Right now India imports about 70 percent of its oil needs. Right now, about 45 percent of India’s oil comes from Gulf Cooperation Council Countries such as Bahrain (hi, Michael Jackson!), Kuwait, Saudi Arabia, and the United Arab Emirates. It is believed, though, that the demand will increase to 91 percent by 2020.

India does not want to rely on the Middle East for its oil. So the country is looking into prospects of getting oil from Asian and African nations such as Myanmar, Vietnam, Sudan, Nigeria, and Turkmenistan. Plans to bring oil from Myanmar to India through Bangladesh fell through because Dhaka wanted India to agree to a free trade corridor to Nepal and to remove trade barriers between India and Bangladesh. It also demanded excessive transit fees. India rejected all of this as well as other nearby nations.

Now Turkey is offering a solution. The plan calls for oil to be transported through Turkey’s pipeline from Central Asia to its Ceyhan port. From there, the oil would be shipped across the Mediterranean to Israel which would pipe, then ship by tanker across the Arabian Sea, fuel to India.

Sounds pretty round about, but it is said to be the most efficient alternative for India.

So Turkey’s offer looks very good right now. The next issue is from where will India get the actual oil. So far it has been turning its hopes toward Kazakhstan, Turkmenistan, and Azerbaijan.

Our take? We guess it just goes to show you. Be careful what you wish for. Purchasing oil can entangle a country into all sorts of geo-political messes that it just does not want to get involved in. Problem is if your economy is growing as rapidly as India’s and if your automobile industry and market is becoming such a major global player as India’s appears to be, then there aren’t many options but to get what you can get. Well, India, welcome to the world of high stakes finance and geo-political entanglements which has been a part of the U.S. foreign policy for ages.


via Asia Times