Strategic Petroleum Reserves In India: Energy Security, Legal Challenges And The Need For A Regulatory Framework
- IJLLR Journal
- May 26
- 2 min read
Abinaya R M, LL.M (Natural Resources Law), Tamil Nadu National Law University, Tiruchirappalli
ABSTRACT
Strategic Petroleum Reserve plays a crucial role in mitigating risks associated with oil supply disruption and the sudden rise of prices, and also in ensuring energy security. This article explores the significance of SPR, tracing its evolution from 1990s oil crisis to the establishment of SPR in India. India’s engagement with the international frameworks such as IEA has been addressed highlighting the global standards with regard to stockpiling of oil. It also analyses the key challenges in implementing SPR including the concerns relating to environmental protection, displacement of local population, costs of operation and maintenance, transition towards renewable energy, etc. This article emphasizes that though SPR plays a significant role in ensuring energy security, this must be integrated with broader aspects such as energy conservation and environmental sustainability. It also underscores the need for robust legal framework governing SPR for its long-term viability.
1. INTRODUCTION
Petroleum security is an important aspect of national security, and in the same way Strategic Petroleum Reserve (SPR) is important for national energy security. The concept of energy security boomed in 1970s when there was an oil crisis, wherein there was a huge fluctuation in the price of the oil and the prices of oil skyrocketed. This is when the developed countries came together and established International Energy Agency (IEA) in the year 1947, proposing theconceptofenergysecurityfortheveryfirsttime.1 Atpresent,theIEAcountriesholdstocks to equivalent to 90 days of the net import. The main purpose of SPR is to reduce the impact that may arise due to any disruptions in the supply of petroleum products. These oil stocks are stored in underground salt caverns.
