The world oil crisis is having a profound effect on developing countries such as India.?
The world oil crisis is having a profound effect on developing countries such as India. These countries, faced with crippling increases in the cost of petroleum, are seeking alternatives to their traditional purchase patterns.
The government of India on New Year's Day held talks with a delegation from the Soviet Union led by Oil Industry Minister Valentine Shashin. The New Delhi government is seeking Soviet aid to double its oil production in the next five years and assistance to expand its current oil exploration programme. The Soviet delegation came to New Delhi at the invitation of the Indian Government.
No agreement was announced after the meeting. It is estimated that the recent oil price increases will double India's petroleum import bill in 1974. If present import levels are maintained, the Indian government will have to spend more than 10-million rupees (540 million Sterling, or one billion, two hundred and fifty million dollars) for oil, is more than half of India's projected export earnings.
On December 31st, Dr. Abderrehman Khene, the Secretary-General of the Organisation of Petroleum Exporting Countries (OPEC) ruled out the possibility of reduced oil prices for developing nations. Speaking in New Delhi, Dr. khene said developing countries will have to arrange credit facilities and bilateral trade arrangements with oil producing countries to help pay for their oil.