Mumbai: The country should acquire oil assets overseas and if feasible enter into long-term bilateral development and supply agreements with oil-exporting countries to meet its future energy needs at low cost, says a report.
"As India's status as oil consumer will grow in the world in next decade and limited oil reserves pose a threat, the country should use this period of relative calm in oil markets to acquire oil assets overseas...
"...And if feasible enter into long-term bilateral development and supply agreements with oil-exporting countries," Equentis Capital director Vikram Dhawan said in its research report here.
While sentiment towards oil prices may be subdued in the near-term on account of softer demand growth coupled with supply surge, it will be foolhardy to presume stable or lower prices for the longer term, Dhawan said.
Declining oil prices may be a short to medium term phenomena as OPEC may support prices next year and alternate sources require higher prices for viability, the report said.
Over 80 percent of India's energy needs are met by Coal and Oil where combination of plateauing indigenous production and increasing dependence on imports may threaten the country's Energy Security in the not too distant future, Dhavan said.
The average growth in Primary Energy consumption in India for the past decade has been well over 8 percent per annum.
Oil consumption in India has increased by around 50 percent in past 10 years in terms of volume.