Mukesh for stable oil pricing globally

Barely weeks away from starting a new, only-for exports oil refinery, Reliance Industries (RIL) head Mukesh Ambani today said globally a stable oil pricing regime was needed to sustain investments and economic growth.

The 6,60,000 barrels per day refinery, being constructed by Reliance Petroleum, a unit of RIL, is to be completed by the end of 2008 and Ambani gave hints the unit may be on track.

"When in 1999, we started our first refinery (also at Jamnagar), we have a recession (globally) and when we are about to start our second refinery, history is repeating itself," he said at a lecture on role of energy here.

He did not elaborate and did not take questions on the schedule of the refinery afterwards.

There have been speculations that Reliance may have pushed back commissioning of the plant as margins turned weak on falling global oil prices and recession in major economies.

Ambani said energy had crucial role to play in economic prosperity and social equity and it has to available, accessible and affordable. Stable oil pricing regime was the need of the hour.

Availability was not an issue as 2 trillion barrels of conventional oil reserves still remained to be exploited that would be enough to support world demand for 3-4 decades. Another trillion barrel reserves are trapped in non-conventional sources such as oil shells and tar sands.

"But accessibility is an issue as most of the reserves are in hostile and remote physical environments," he said. "Affordability is (also) an issue."

Crude at even $60 per barrel is unaffordable to many nations. "One time (oil-cartel) OPEC had talked of maintaining crude oil price in a band of $25-30 a barrel. This would be necessary (for) economic prosperity," he added.