Saudi Arabia Minister Khalid Al-Falih said that they stand committed to meeting all energy requirements of Indian National Capital. According to the statement by Saudi Arabia Minister Khalid A, there is a high possibility of investment increase in India as well. He said while addressing the Indian Energy Forum On Monday that the investment made by the Saudi Aramco’s of $44 billion in the Ratnagiri refinery was just the beginning and the company was interested in investing in an integrated downstream business, which comprises the storage capacity as well as the retail side.
He further added that today, in the morning, the meeting was held with the Prime Minister Narendra Modi and Petroleum Minister Dharmendra Pradhan and he assured them of his full and continuous commitment that he will meet all the energy demands of India, particularly in oil, and invest in India. He also said that to make stronger relations with India is the first considered priority of the Kingdom of Saudi Arabia.
The research and development in the field of electric vehicles would mean a decrease in the demand for oil. Normal vehicles still constitute 99.8% of the total vehicles on road in the world. The electric vehicles are dominant in the passenger vehicle segment, which constitutes only a quarter of the oil demand. The present limitation of these electric vehicles is lack of infrastructure along the roads for charging of these vehicles.
Mr. Al-Falih elaborated that majority of oil demand came from sectors which operate super heavy machinery and need commercial vehicles with heavy power and capacity. Thus, this demand would remain in continuation for a long time to come.
He further added that the surge in oil price which is currently being felt by the people of the country would have been worse if they would have believed in rumors 4-5 years ago which claimed that oil demand had peaked and would begin to decline now. But, Saudi Arabia pro-actively and responsibly invested in the oil industry to strengthen their capacity and prevented a major surge in the price of oil which would have otherwise shocked the entire world.