India’s national oil companies have been eyeing Canada’s oil sands for at least a decade. Three of the largest oil companies in India (Oil and Natural Gas Corp, Oil India Ltd and Indian Oil Corp) have made a bid for northern Alberta assets. India (alongside China) boast the highest economic growth rates in the world, as both are net energy importers and both are anticipating dramatic growth in their energy demands over the coming decades. In the year 2000-2003, Indian companies saw the oil sands as being overly expensive and crowded, stating that it was not the right time at the moment. Once the global recession took place the prices of the oil sands had dropped, as did the prices elsewhere in the world so India went to Africa and the Middle East. However, with the energy assets in those regions being under government control, India had shifted its focus back to Canada. Experts state that India had lacked the resources in the past to compete, as a global push for oil sands assets has grown. The Oil and Natural Gas Corporation concentrating on known reserves in stable jurisdictions as demand is expected to continue to increase within India. The bid suggests that the Indian based oil companies have broken free from their financial limitations.
Written by Shamroze K.
Berkow, Jameson. “India Finally bids Canadian Energy Assets.” National Post. N.p., 25 Sept. 2012. Web. 25 Sept. 2012. <http://business.financialpost.com/2012/09/24/india-finally-makes-a-move-on-canadian-energy-assets/>.