Indian Minister’s Warning: Brace for ‘Organized Chaos’ if Oil Surpasses $100 per Barrel

India’s minister of petroleum and natural gas warned that there’ll be “organized chaos” if oil prices break above $100 per barrel, but said the South Asian nation is well positioned to weather higher costs.

“If the price goes above $100, it’s not going to be in the interest of either the producing country or anyone’s interest. You will have large, organized chaos,” stated Hardeep Singh Puri during a panel at the ADIPEC oil and gas conference in Abu Dhabi, United Arab Emirates on Tuesday.

Puri also reassured that India, being a large economy with significant domestic production, can cut back and adapt to handle higher prices.

Recent oil price surges have left U.S. West Texas Intermediate futures at $95.03 per barrel. However, prices have since decreased, currently standing at $89.44 a barrel in Wednesday morning trade in Asia.

While Puri expressed confidence in India’s ability to navigate high prices, he expressed concern for other developing nations.

“I would worry about what happens to other parts of the developing world … that is really a worrying point,” Puri emphasized, drawing attention to how rising prices have contributed to increasing poverty among 100 million people.

The minister expressed on X the need for oil producers to be mindful of the challenges faced by consuming countries.

“During the pandemic, when crude oil prices crashed, the world came together to stabilize the prices to make it sustainable for the producers. Now, as the world is at the cusp of economic recession & slowdown, oil producers need to show the same sensitivity towards consuming countries,” he stated.

Puri discussed the challenge of balancing energy availability, affordability, and sustainability. He highlighted that India has made significant progress in ensuring energy availability and affordability.

While India has set a net-zero goal for 2070, other major economies have more ambitious targets. China aims for carbon neutrality by 2060, while Japan and the U.S. have set goals for 2050.

Puri emphasized that India’s transition to sustainable energy is happening at a faster and more comprehensive scale than originally anticipated.

He also pointed out that major energy companies like Indian Oil Corporation, Oil and Natural Gas Corporation, and Bharat Petroleum have all set net-zero targets well ahead of 2070.

“When prices shoot up, people’s resolve to transition works faster … There’s a realization that we’ve got to get off our backsides and do things that are important,” concluded Puri.