ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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From 50 Years Ago:New Light on Oil.

Editorial from Volume XI, No 33, August 15, 1959.

Whichever way one may look at it, the problem of oil is a formidable one for a developing economy. The economic adventure ranging from the exploration for oil production, refining, transport and distribution upon which India has launched, Mr L D Mudie establishes from facts and figures, would involve a colossal in-vestment. Considering the heavy cost of all these operations and the tremendous increase that is to be expected in the consumption of oil products in the country in the next ten years, the capital needed will reach a staggering figure.

Is it worthwhile for India to take up so much on hand when her hands are already full?... Is it wise for India to volunteer to take up this huge load of capital investment? How co-lossal is the amount that is needed to keep up oil production in step with the growing demand, Mr Mudie illustrates with a pointed reference to the capital floated only last year by the Shell Group. It was the largest single capital issue in European history; yet the amount raised sufficed to cover the capital and exploration expenditure of the Shell Group, for a period of just 4 months. The moral is simple. Oil pays for itself – the profits of the Oil Com-panies, carefully husbanded and ploughed back, take care of the world’s expanding needs and India has only to keep in step to take ad-vantage of it and ensure her growing future requirements without having to undertake crippling expenditure on her own.

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