‘Demand in India, China leading to oil price rise’

The US President, Mr Barack Obama, has said that the increasing demand of oil in countries like India and China is leading to the rise in oil prices.

“For decades, we’ve left our economy vulnerable to increases in the price of oil. And with the demand for oil going up in countries like China and India, the problem is only getting worse,” Mr Obama said in his speech on fuel efficiency standards for cars and light-duty trucks location.
“The demand for oil is inexorably rising, far faster than supply. And that means prices will keep going up unless we do something about our own dependence on oil. That’s the reality,” he said.
However, he added that there is no quick fix to the problem. “There’s no silver bullet here. But there are steps we can take now that will help us become more energy independent.”
“So I’ve laid out an energy strategy that would do that.
In the short-term, we need to increase safe and responsible oil production here at home to meet our current energy needs.
And even those who are proponents of shifting away from fossil fuels have to acknowledge that we’re not going to suddenly replace oil throughout the economy. We’re going to need to produce all the oil we can,” he said.
Mr Obama added: “While we’re at it, we need to get rid of, I think, the $4 billion in subsidies we provide the oil and gas companies every year at a time when they’re earning near-record profits and put that money towards clean energy research, which would really make a big difference.”
He further stated that in the long run they’ll “have to harness the potential of start-ups and clean energy companies across America’’.
“We’ve set an aggressive target, and the companies here are stepping up to the plate. By 2025, the average fuel economy of their vehicles will nearly double, to almost 55 miles per gallon,” the US President said.
“It means filling up your car every two weeks instead of filling it up every week. It will save a typical family more than $8,000 in fuel costs over time. And consumers in this country as a whole will save almost $2 trillion in fuel costs. That’s trillion with a T,” he said.
Source: Hindu Business Line