In Ballia, Uttar Pradesh something big has been discovered — immense deposits of crude oil; it is being seen as a silver bullet that can revolutionize the Indian economy by showering it with massive wealth. This find is seen to be a jackpot for the country, possibly turning India to “super rich” and the address of imported crude oil will be reduced to zero, according to experts.
After thorough geological prospection the new find reveals major high quality crude oil reservoirs in Ballia area. If true and successfully developed, these reserves could be a game changer for India’s ability to produce oil onshore which will have ramifications on the nation’s energy security and support its economic stability.
India has growing thirst for importing crude oil as biggest consumer in Asia. India is waiting with bated breath to find that this dependence may well become significantly less, with huge foreign exchange savings and a significant advance in economic self-reliance to this nation, due to discovery in Ballia.
The economic impact of this discovery is underlined by experts. Domestic oil production increases would translate into lower fuel prices, holding out benefits to both consumers and industries. It might also encourage investment in related industries, generate employment and provide a boost for growth.
The find is also geographically significant. Decreasing oil import reliance might improve geopolitical bargaining power of India and shield it from global oil price shocks. It could make India a more attractive investment destination too and in some way help bolster economic growth.
And to reap such benefits this road is filled with great deal of hurdles. Cash-and-crude oil extraction is very expensive to extract, infrastructure wise and technically. Sustenance of the extraction process has to be taken care, as well by environmentalist.
The government may announce more studies to establish the full scale of the deposits, and then how they will be extracted. So far, the discovery has been well-received with analysts forecasting a positive effect on the Indian economy.
There was optimism about the mirage of Ballia to be a big oil producing region, prospects have more job creation and better infrastructure in this region. It could be a game changer not just for the economy of Uttar Pradesh but for the entire nation by this discovery.
