Many Oil & Gas experts believe that the Indian mainstream media has reverted to the pre-BJP-led government years of “kite flying” in the strategic Oil & Gas sector. This includes revealing the names of potential candidates for the position of Chairman at IOCL, raising alarms about rising gas prices from companies like GAIL, and speculating about Aramco setting up a refinery with ONGC and BPCL. Such stories can influence the minds of consumers and even impact the stock market.
Certain executives in state-owned oil and gas companies, especially those whose tenures have seen minimal progress, tend to fuel these sensational stories. Their ambitions to secure roles beyond their retirement add fuel to the fire. This behavior is detrimental to the nation and its citizens. Selective disclosures of business goals and strategies weaken public sector undertakings (PSUs) and tarnish the image of the government and bureaucracy.
In Oil & Gas circles, it’s well known that private players keep their strategies closely guarded. They only disclose information when necessary, such as during public offerings or to defend against challenges. The way the Secretary of the Ministry of Petroleum and Natural Gas advocated for the removal of windfall taxes—primarily benefiting private players, can be seen as a notable example. No one could feel that the move was primarily aimed at benefiting the Private Oil & Gas Companies. A case was made out that since the Crude Prices had fallen thus Windfall Taxes should be removed. It is well known that the MoP&NG hardly ever speaks about the private sector. They want all to believe that their concern is only the PSUs. But they are quick to assist the Private Sector in whatever way they can. Oil & Gas sector experts feel such actions are warped and would lead to difficulties in the long run. The Private beneficiaries were quite obviously mum, why should they look at the teeth of a gift horse. And quite predictably no Main Stream Media ran a story on the windfall gains of Private players Private companies are gradually establishing themselves as monopolies. Positioning to dominate the energy sector in India. The check and balance of the Oil & Gas PSUs is being eroded at the expense of the common public.
While the future lies in hydrogen, alternative fuels, and renewables—areas where private players are solidifying their positions—PSUs remain focused on Refining. The promises of local benefits, vendor opportunities, and employment from refinery projects have often proven deceptive. The voices within the BJP Government rule out Fossil Hydrcarbons as major fuel sources and in the same breath, others in the Government are going ga ga over Refineries. There is mounting pressure on public sector oil and gas companies to relinquish vital assets to private players, such as aviation and other pipelines, where monetization activities have already been completed. This rush to empower private companies is to ensure private energy monopolies that may not serve the best interests of a poor nation like India. Selective and one sided information by some media houses are being used to shape narratives that could be harmful in the long run. That these media outlets have the influence to sway the largely uninformed population is well known. The Haryana Poll predictions is a case in point. Ill directed narratives have severe consequences.
Certainly such actions do not serve the overall interests of the current government. Bureaucrats may want to argue otherwise because Privatisation is still the flavour of the day despite BP Sale Fiasco and Privatisation of Air India have not had the desired outcomes.
Experts believe the global energy situation is at a critical juncture, and any missteps now can have long-term negative consequences. With India already facing significant economic challenges, the country can ill afford mistakes in the energy sector and depending on narratives driven by vested interests.