ENVIRONMENT/FUEL CRISIS & ALTERNATIVES
Global problem need not always be India’s domestic problem. It is eminently possible to address our issues according to our own ground conditions. Thus it is within our means to reduce the impact of uncontrolled crude prices according to our own socio- economic compulsions. But the government response is always according to its political compulsion. Thus problem in pricing method is very much there. The government in power should address this issue for the larger good.
As usual lot of our issues and therefore problems are interlinked. But the basis or the causes of all our problems and therefore issues, whether global or local are all due to one of the greatest of human failings. ‘THE GREED’.
But how does environment & fuel crisis are related to this human dimension called greed?
Long ago Mahatma Gandhi, father of our nation, had observed, "there’s enough for everybody’s need, not for everybody’s greed." This is an all time universal truth, beyond time and place.
The market intelligence informs us that the crude price is going to hit the roof. In a matter of less than a year international crude market is going to experience the shock. The price per barrel of crude shall be US $ 200, predicted Goldman Sachs, the global financial analysts. What can happen at that time?
The crude price is only around US $ 135/-p.b, and the world is already experiencing the heat of the inflationary market forces. Surely a 50% rise in the crude price can be devastating.
Thus the energy crisis is a reality, not at a distant future, but right now. In fact its been there for many years, but as usual we are slow learners.
Especially when it comes to energy or fuel, global response has not been all that positive. The fossil fuels; coal; oil and natural gas has been practically our entire energy source, almost 90%. Dependence on this source has been increasing over the years. As it can be seen there appear no let up. It is this near total dependence that has caused the spurt in its price in the international market. Also true is the finite supply of this fuel. The supply cannot be infinite. Thus the plan is to make most of the hay while sun shines.
According to the available reports these fossil fuels are due to run out within the next 4 to 5 decades. What can happen then, if there is no alternative before the comity of nations?
While debate and discussion on alternative energy source is, already an -on -going exercise, although much needs to be done, the reason for the present crisis is not far to seek. The sheer greed of the oil producing countries, in increasing continuously the prices of crude, has been the single most important reason for the energy crisis.
As is visible, the spurt in oil prices lead to multiple reactions in market driven economy. Food prices are the one of the worst affected. The present Indian inflation is not isolated. The petroleum inputs into agricultural activity is very vital. Fertilizer being most important input, so are the ballooning transportation costs.
According to market intelligence, quoting Wall Street Journal, the price of rice, the staple of billions of Asians, is up 150% over the past year. Soaring price of rice, wheat, corn, pulses, vegetable oil and other staples have sparked disturbances in different parts of the third world. Food riots have erupted in Haiti, Egypt, Senegal, Ethiopia, Pakistan, Bangladesh. In Egypt, it is reported that government has ordered army to bake bread and Pakistan similarly asked the army to protect grain ware houses from food theft. But in India media informs that only Congress party and its allies in UPA are worried because of the ensuing election. That’s the only response we can see. Aren’t we always like this? On the other end there is U.S, Australia and other rich countries who are spending resources to develop alternatives for fuel. Ofcourse the sad part of this exercise is the denial of food available for exports. For example its understood that U.S has allowed almost 20% of its corn production for the conversion to alternative fuel. As per one estimate 100 million tons of grain,enough to feed 450 million persons for an entire year, is being transformed into fuel. The Washington Times had rightly observed that car engines are burning the crops that feed half a billion people. Of course, in the global context it can be viewed with concern, because food is certainly far more important than the oil.
Coming to the Indian context, steepness of the price can be reduced by executive decision of the central and state governments. End price reaching the consumer includes around 50% of levies loaded by the central and state governments. In the ongoing exercise of price fixing, the central government reduced Re 1/- per litre of petrol and diesel, whereas central government loads Rs 14.45 excise duty on petrol and Rs 4.60 on diesel. On the top is the Sales Tax levied by the state governments. Thus the end price paid by the consumers is almost double of what it costs the refining companies including their mark up. Thus there is scope for restructuring prices. Besides India produces about 20% refined petroleum products of domestic requirements. Hence local prices can remain insulated to some extent from the global up surge. Then of course there’s the market intelligence which tells that while Reliance has a mark up of 0/20 paise a litre, public sector Indian Oil Corporation has Re. 1 as mark up. This mark up is after, all the overhead cost loaded as the cost. The overhead includes lot of hugely controllable costs, which a private sector company like Reliance would necessarily control unlike state controlled companies like Indian Oil Corporation, ONGC, HPCL, Bharath Petroleum etc.
Thus, global problem need not always be India’s domestic problem. It is eminently possible to address our issues according to our own ground conditions. Thus it is within our means to reduce the impact of uncontrolled crude prices according to our own socio- economic compulsions. But the government response is always according to its political compulsion. Thus problem in pricing method is very much there. The government in power should address this issue for the larger good.
If problem of petroleum pricing is one of the causes of inflation there are other problems related to hydro-carbon consumption. We have witnessed the unfettered use of hydro-carbon in recent years. Since mid-ninetees, the middle class Indians have experienced unprecedented boom in their average incomes. If earlier four figure income was common place, now 5 figure has become very common and a very good percentage of Indians in India have enjoyed 6 figures monthly incomes. This increased income has increased the food consumption of most Indians. Every increased consumption has increased the waste component. Every waste increases environmental degradation to that extent. If this is one side of affluent dimension of Indian society, there is the other side represented by the increased purchasing power. The automobile market for both Two wheelers and Four wheelers have seen unprecedented boom. The traffic landscape has changed incredibly since the mid-ninetees. While it is good to see that a good part of Indians are enjoying the liberalization and globalization of the economy, it has greatly contributed to the environmental degradation borne out of hydrocarbon generated carbon monoxide. Truly speaking, more than the industrial pollution, it’s the carbon monoxide level in the atmosphere due to auto emission has been the single largest cause that has caused environmental degradation and therefore climate change.
Of course, we need to recognize that industrial pollutants are area concentrated unlike auto emission which is spread over a very wide area. Hence social responsibility of industries does not get mitigated only because it gets diluted in the presence of auto emission spread over larger area.
While all developments necessarily increases the consumption level of all those who have benefited from the growth, it must be appreciated, that here again it’s the GREED which is the single most important reason why we are all missing the point.
Do we need a growth which can lead to chaos?
We have a labour which needs wages without working, or need increased pay for decreased work, we have executives similarly, who want more pay, benefit and more comforts for the same amount of inputs. We want to spend our increased income to buy better comforts and more of it all the time. Man in cycle wants two wheeler, two wheeler owner wants 4 wheeler, 4 wheeler owner wants more of it, one for self, one for wife and some more for children. Business men and industrialists wants to make more & more money by cutting cost and corners. Compromise quality and safety, but make more money. Politicians wants money without doing anything. Bubus want 40% hyke in their payrolls, but unorganized and helpless working class, like Anganwaddi worker and others, let them go to hell. Good intentioned NREG scheme has penetrated less than 10%, where did the 90% money go? A young man in Andhra who exposed the corruption in NREG scheme was mysteriously done with. Parents of the only son, are distraught. But who cares? There is this trade union president demanding 12% interest on EPF for the 4 crores organized employees of the country. Nobody thinks if it is fair? PPF gets only 8% and that constitutes probably more than 4 to 5 times that of the EPF fund and numbers. There’s again crores of labourers in the unorganized sector without any PF or other terminal benefits, again who cares, not at least the government, since general public are helpless once the elections are over.
Thus its visible to even our closed eyes and mind that it’s the ‘Greed’ which is the cause of all our problems. We all need to temper our selfish streaks. We have government retired babus angling for posting as ambassadors, governors, and what not. They continue to want to enjoy the good life at the cost of government money. Then there are agying politicians who are clamouring for similar plush assignments, more pay, more comfort and no responsibility, and they say, they are serving 'aam admi'. No, they are only looking for AAM- which means MANGO, and only sweet mangoes. Who’s father's what goes!. There are ageying business executives, after retirement, want to become directors on the board and to remain in the board, as long as its possible, enjoying the comforts of high office with only advisory roles TIRED BUT NOT RETIRED. We have Infosys role models, but they are only a few. Narayan Murthy and Nandan Nilekani and may be few more,who have left the scene when due.
Yes, in a problem of fuel crisis, these are probably not the issues. But then, like we said earlier, all gets interlinked in some way or the other. There is problem in the economy and therefore in society. Who suffer most in society? The man with least financial means. Yes, poor becomes poorer, Yes it’s the most disturbing part of he growth.
Thus the question, Do we need growth which can lead to chaos?
Interacting with mediamen the other day, Baba Ramdev had some words of advice to Indians "Its high time they controlled their way of eating. They eat without any control and become obese and then come to me to shed weight. Overeating, obesity and inflation are all linked and I ask them to eat less," he has reportedly stated.
Isn’t Baba Ramdev telling the truth?
Yes, as we all believe, every problem has a solution. But we must be prepared for disciplining our life style. Most of our problems are life style generated. How do we do that?
Ministers of G.8 along with China, South Korea and India met recently in Osaka, and decided to explore the use of other fuels, besides technological up gradation of oil exploration and extraction.
They also appealed to OPEC countries to increase output. But sadly what they didn’t discuss was how to wean away consumers from, as a journalist puts it "incurable oil addiction".
We need to seriously look at alternative energy sources and minimise our dependence on fossil fuel. It is in our own interest to develop models where we shall use less and less of hydro carbons. Besides energy conservation is the need of the hour. There are different ways for the energy efficiency regime. But this has to start from top down. But people at the helm, the elected representatives and the babus who administer the government machinery are the one’s who shall have least or no discipline. Once upon a time there was one E.M.S Namboodiripaad, a former Chief Minister of Kerala, who was famously riding a bicycle to the secretariat, there may be others like AK Antony and George Fernandes who may not mind riding a cycle if it comes to that, may be some more may follow, like Lalu Prasad and the like. But overwhelming majority of M.Ps and MLAs / MLCs, cannot be controlled. The dalit icon Maaya memsahib can be a model in overspending for self glorification, including using personal aircrafts. So where do we go?
However at individual levels, whatever contribution we can make, its possible to make a difference.
Among car users, pooling cars could be an option. Avoid using cars some days of the month. For example, there are practices in some places, once or twice a month, carless days are observed, once even numbered cars and other time odd numbered cars go off the road. This can not only reduce the fuel usage, but shall also save money besides reducing the auto emission. Thus it has 3 dimensional benefit.
Promote cycle culture (with or without battery) It increases fitness level & reduces pollution levels and no fuel. Students in particular should be encouraged to use cycles and if possible discouraged from using two wheelers or four wheelers. Use of 2 or 4 wheelers by students is only to reflect the affluence of their parents. This tendency is best curbed in the larger interest.
Make public transport more efficient, accessible and comfortable, so that more people can use more often these transport systems, which can bring about greater saving of fuel, lesser degradation of environment, greater saving in expenditure on fuel etc.
In conclusion it may be appropriate to quote senior journalist A Madhavan, "we can beguile ourselves by picturing scenarios of adjustment to the grim crisis as it threatens our future. Bullock carts and Jatkas? Bio fuels from acres of Jatropha? High hopes of oil and gas from the Bay of Bengal? Gandhian Sarvodaya? Abandoned airstrips into cricket fields? Will the Vedic Surya come to our resque?"
" Obviously, it is in our own interest to move smoothly away from the present model of oil based growth to one of renewable energy, using fossil fuels to the minimum. All this involves a radical reworking of our planning and far more disciplined execution of a feasible strategy. It calls for a truly purposive national drive which cuts across party feuds, federal disputes and petty quarrels which daily foul up our political life. It requires probity and integrity from all citizens- top to bottom. We must implement a short term strategy of adaptation to the oil crisis and a longer term strategy for a carbon free energy regime", he concluded.
Yes, as the award winning film on oil crisis has conveyed "WE ARE RUNNING OUT, AND WE DO NOT HAVE A PLAN". That's an alarm bell. Can we ignore it?
But how does environment & fuel crisis are related to this human dimension called greed?
Long ago Mahatma Gandhi, father of our nation, had observed, "there’s enough for everybody’s need, not for everybody’s greed." This is an all time universal truth, beyond time and place.
The market intelligence informs us that the crude price is going to hit the roof. In a matter of less than a year international crude market is going to experience the shock. The price per barrel of crude shall be US $ 200, predicted Goldman Sachs, the global financial analysts. What can happen at that time?
The crude price is only around US $ 135/-p.b, and the world is already experiencing the heat of the inflationary market forces. Surely a 50% rise in the crude price can be devastating.
Thus the energy crisis is a reality, not at a distant future, but right now. In fact its been there for many years, but as usual we are slow learners.
Especially when it comes to energy or fuel, global response has not been all that positive. The fossil fuels; coal; oil and natural gas has been practically our entire energy source, almost 90%. Dependence on this source has been increasing over the years. As it can be seen there appear no let up. It is this near total dependence that has caused the spurt in its price in the international market. Also true is the finite supply of this fuel. The supply cannot be infinite. Thus the plan is to make most of the hay while sun shines.
According to the available reports these fossil fuels are due to run out within the next 4 to 5 decades. What can happen then, if there is no alternative before the comity of nations?
While debate and discussion on alternative energy source is, already an -on -going exercise, although much needs to be done, the reason for the present crisis is not far to seek. The sheer greed of the oil producing countries, in increasing continuously the prices of crude, has been the single most important reason for the energy crisis.
As is visible, the spurt in oil prices lead to multiple reactions in market driven economy. Food prices are the one of the worst affected. The present Indian inflation is not isolated. The petroleum inputs into agricultural activity is very vital. Fertilizer being most important input, so are the ballooning transportation costs.
According to market intelligence, quoting Wall Street Journal, the price of rice, the staple of billions of Asians, is up 150% over the past year. Soaring price of rice, wheat, corn, pulses, vegetable oil and other staples have sparked disturbances in different parts of the third world. Food riots have erupted in Haiti, Egypt, Senegal, Ethiopia, Pakistan, Bangladesh. In Egypt, it is reported that government has ordered army to bake bread and Pakistan similarly asked the army to protect grain ware houses from food theft. But in India media informs that only Congress party and its allies in UPA are worried because of the ensuing election. That’s the only response we can see. Aren’t we always like this? On the other end there is U.S, Australia and other rich countries who are spending resources to develop alternatives for fuel. Ofcourse the sad part of this exercise is the denial of food available for exports. For example its understood that U.S has allowed almost 20% of its corn production for the conversion to alternative fuel. As per one estimate 100 million tons of grain,enough to feed 450 million persons for an entire year, is being transformed into fuel. The Washington Times had rightly observed that car engines are burning the crops that feed half a billion people. Of course, in the global context it can be viewed with concern, because food is certainly far more important than the oil.
Coming to the Indian context, steepness of the price can be reduced by executive decision of the central and state governments. End price reaching the consumer includes around 50% of levies loaded by the central and state governments. In the ongoing exercise of price fixing, the central government reduced Re 1/- per litre of petrol and diesel, whereas central government loads Rs 14.45 excise duty on petrol and Rs 4.60 on diesel. On the top is the Sales Tax levied by the state governments. Thus the end price paid by the consumers is almost double of what it costs the refining companies including their mark up. Thus there is scope for restructuring prices. Besides India produces about 20% refined petroleum products of domestic requirements. Hence local prices can remain insulated to some extent from the global up surge. Then of course there’s the market intelligence which tells that while Reliance has a mark up of 0/20 paise a litre, public sector Indian Oil Corporation has Re. 1 as mark up. This mark up is after, all the overhead cost loaded as the cost. The overhead includes lot of hugely controllable costs, which a private sector company like Reliance would necessarily control unlike state controlled companies like Indian Oil Corporation, ONGC, HPCL, Bharath Petroleum etc.
Thus, global problem need not always be India’s domestic problem. It is eminently possible to address our issues according to our own ground conditions. Thus it is within our means to reduce the impact of uncontrolled crude prices according to our own socio- economic compulsions. But the government response is always according to its political compulsion. Thus problem in pricing method is very much there. The government in power should address this issue for the larger good.
If problem of petroleum pricing is one of the causes of inflation there are other problems related to hydro-carbon consumption. We have witnessed the unfettered use of hydro-carbon in recent years. Since mid-ninetees, the middle class Indians have experienced unprecedented boom in their average incomes. If earlier four figure income was common place, now 5 figure has become very common and a very good percentage of Indians in India have enjoyed 6 figures monthly incomes. This increased income has increased the food consumption of most Indians. Every increased consumption has increased the waste component. Every waste increases environmental degradation to that extent. If this is one side of affluent dimension of Indian society, there is the other side represented by the increased purchasing power. The automobile market for both Two wheelers and Four wheelers have seen unprecedented boom. The traffic landscape has changed incredibly since the mid-ninetees. While it is good to see that a good part of Indians are enjoying the liberalization and globalization of the economy, it has greatly contributed to the environmental degradation borne out of hydrocarbon generated carbon monoxide. Truly speaking, more than the industrial pollution, it’s the carbon monoxide level in the atmosphere due to auto emission has been the single largest cause that has caused environmental degradation and therefore climate change.
Of course, we need to recognize that industrial pollutants are area concentrated unlike auto emission which is spread over a very wide area. Hence social responsibility of industries does not get mitigated only because it gets diluted in the presence of auto emission spread over larger area.
While all developments necessarily increases the consumption level of all those who have benefited from the growth, it must be appreciated, that here again it’s the GREED which is the single most important reason why we are all missing the point.
Do we need a growth which can lead to chaos?
We have a labour which needs wages without working, or need increased pay for decreased work, we have executives similarly, who want more pay, benefit and more comforts for the same amount of inputs. We want to spend our increased income to buy better comforts and more of it all the time. Man in cycle wants two wheeler, two wheeler owner wants 4 wheeler, 4 wheeler owner wants more of it, one for self, one for wife and some more for children. Business men and industrialists wants to make more & more money by cutting cost and corners. Compromise quality and safety, but make more money. Politicians wants money without doing anything. Bubus want 40% hyke in their payrolls, but unorganized and helpless working class, like Anganwaddi worker and others, let them go to hell. Good intentioned NREG scheme has penetrated less than 10%, where did the 90% money go? A young man in Andhra who exposed the corruption in NREG scheme was mysteriously done with. Parents of the only son, are distraught. But who cares? There is this trade union president demanding 12% interest on EPF for the 4 crores organized employees of the country. Nobody thinks if it is fair? PPF gets only 8% and that constitutes probably more than 4 to 5 times that of the EPF fund and numbers. There’s again crores of labourers in the unorganized sector without any PF or other terminal benefits, again who cares, not at least the government, since general public are helpless once the elections are over.
Thus its visible to even our closed eyes and mind that it’s the ‘Greed’ which is the cause of all our problems. We all need to temper our selfish streaks. We have government retired babus angling for posting as ambassadors, governors, and what not. They continue to want to enjoy the good life at the cost of government money. Then there are agying politicians who are clamouring for similar plush assignments, more pay, more comfort and no responsibility, and they say, they are serving 'aam admi'. No, they are only looking for AAM- which means MANGO, and only sweet mangoes. Who’s father's what goes!. There are ageying business executives, after retirement, want to become directors on the board and to remain in the board, as long as its possible, enjoying the comforts of high office with only advisory roles TIRED BUT NOT RETIRED. We have Infosys role models, but they are only a few. Narayan Murthy and Nandan Nilekani and may be few more,who have left the scene when due.
Yes, in a problem of fuel crisis, these are probably not the issues. But then, like we said earlier, all gets interlinked in some way or the other. There is problem in the economy and therefore in society. Who suffer most in society? The man with least financial means. Yes, poor becomes poorer, Yes it’s the most disturbing part of he growth.
Thus the question, Do we need growth which can lead to chaos?
Interacting with mediamen the other day, Baba Ramdev had some words of advice to Indians "Its high time they controlled their way of eating. They eat without any control and become obese and then come to me to shed weight. Overeating, obesity and inflation are all linked and I ask them to eat less," he has reportedly stated.
Isn’t Baba Ramdev telling the truth?
Yes, as we all believe, every problem has a solution. But we must be prepared for disciplining our life style. Most of our problems are life style generated. How do we do that?
Ministers of G.8 along with China, South Korea and India met recently in Osaka, and decided to explore the use of other fuels, besides technological up gradation of oil exploration and extraction.
They also appealed to OPEC countries to increase output. But sadly what they didn’t discuss was how to wean away consumers from, as a journalist puts it "incurable oil addiction".
We need to seriously look at alternative energy sources and minimise our dependence on fossil fuel. It is in our own interest to develop models where we shall use less and less of hydro carbons. Besides energy conservation is the need of the hour. There are different ways for the energy efficiency regime. But this has to start from top down. But people at the helm, the elected representatives and the babus who administer the government machinery are the one’s who shall have least or no discipline. Once upon a time there was one E.M.S Namboodiripaad, a former Chief Minister of Kerala, who was famously riding a bicycle to the secretariat, there may be others like AK Antony and George Fernandes who may not mind riding a cycle if it comes to that, may be some more may follow, like Lalu Prasad and the like. But overwhelming majority of M.Ps and MLAs / MLCs, cannot be controlled. The dalit icon Maaya memsahib can be a model in overspending for self glorification, including using personal aircrafts. So where do we go?
However at individual levels, whatever contribution we can make, its possible to make a difference.
Among car users, pooling cars could be an option. Avoid using cars some days of the month. For example, there are practices in some places, once or twice a month, carless days are observed, once even numbered cars and other time odd numbered cars go off the road. This can not only reduce the fuel usage, but shall also save money besides reducing the auto emission. Thus it has 3 dimensional benefit.
Promote cycle culture (with or without battery) It increases fitness level & reduces pollution levels and no fuel. Students in particular should be encouraged to use cycles and if possible discouraged from using two wheelers or four wheelers. Use of 2 or 4 wheelers by students is only to reflect the affluence of their parents. This tendency is best curbed in the larger interest.
Make public transport more efficient, accessible and comfortable, so that more people can use more often these transport systems, which can bring about greater saving of fuel, lesser degradation of environment, greater saving in expenditure on fuel etc.
In conclusion it may be appropriate to quote senior journalist A Madhavan, "we can beguile ourselves by picturing scenarios of adjustment to the grim crisis as it threatens our future. Bullock carts and Jatkas? Bio fuels from acres of Jatropha? High hopes of oil and gas from the Bay of Bengal? Gandhian Sarvodaya? Abandoned airstrips into cricket fields? Will the Vedic Surya come to our resque?"
" Obviously, it is in our own interest to move smoothly away from the present model of oil based growth to one of renewable energy, using fossil fuels to the minimum. All this involves a radical reworking of our planning and far more disciplined execution of a feasible strategy. It calls for a truly purposive national drive which cuts across party feuds, federal disputes and petty quarrels which daily foul up our political life. It requires probity and integrity from all citizens- top to bottom. We must implement a short term strategy of adaptation to the oil crisis and a longer term strategy for a carbon free energy regime", he concluded.
Yes, as the award winning film on oil crisis has conveyed "WE ARE RUNNING OUT, AND WE DO NOT HAVE A PLAN". That's an alarm bell. Can we ignore it?
I & C Feature
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