India and the US signed MoU to develop strategic petroleum reserve

Recently, India and the US have signed an MoU to develop a strategic petroleum reserve and the two countries are in advanced stage of discussion to store crude oil in America to increase India’s stockpile in a virtual US-India Strategic Energy Partnership.

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Key-Points

The memorandum on cooperation in the field of strategic petroleum reserve was based on a proposal from the US after the recent historic drop in oil prices during coronavirus pandemic.

Following the historic drop in global crude oil process, the Indian government actively considered increasing its oil stockpile both inside the country and also overseas in countries like the US.

Very soon the government will be coming out with a concrete road map and proposal on how it can be unfolded, Pradhan said, adding that this would also include that New Delhi can invest in an American storage facility for India’s requirement.

The MoU on Strategic Petroleum Reserve will ensure a consistent energy supply, protects national security, and promote regional and global stability.

Asserting that India-US relationship has witnessed significant growth and expansion in the last few years, especially through the energy component, the Strategic Energy Partnership, was now recognised as a key constituent of this bilateral engagement.