Amidst global geopolitical tensions, India has achieved a noteworthy innovation: the successful development of bio-bitumen, a sustainable alternative to petroleum-based bitumen, commonly used in road construction. This achievement gains significance considering recent events involving Venezuela and its vast oil reserves.
Bio-bitumen was jointly developed by the Council of Scientific and Industrial Research (CSIR) - Central Road Research Institute in New Delhi and the CSIR-Indian Institute of Petroleum in Dehradun. This commercially viable product is derived from agricultural residues, such as hay, using pyrolysis, an oxygen-free heating process used in organic waste recycling. A 100-meter trial stretch of the Jorabat-Shillong Expressway (NH-40) in Meghalaya has already been constructed using bio-bitumen, demonstrating its practical application.
Traditional bitumen, essential for road construction, is a crude oil derivative, costing India approximately $3 billion in imports annually.
The development of bio-bitumen has gained importance due to President Donald Trump's actions in Venezuela. Venezuela holds the world's largest crude oil reserves, much of which is ultra-heavy crude, a significant source of bitumen and diesel. The United States' control over Venezuelan oil flows has implications for countries like China that rely on Venezuelan heavy oil for their refineries.
The current situation in Venezuela, with the U.S. potentially controlling its oil resources, underscores the importance of India's bio-bitumen innovation. Danielle Smith, the premier of Alberta, Canada, has also emphasized the need for pipelines to diversify oil export markets in light of the Venezuelan situation. She advocates for a new pipeline to transport oil to the British Columbia coast for shipment to Asian markets.
The U.S. Treasury Department's sanctions enforcement arm has been actively sanctioning bitumen tankers operating in the Middle East-India route. These sanctions and the potential for additional tariffs on countries dealing with Iran could slow down bitumen imports from the Middle East to India. Despite these challenges, trade activity is expected to continue, potentially through transshipment from the UAE.
While some analysts believe that events in Venezuela are unlikely to significantly impact India's economy or energy security due to low trade volumes and existing sanctions, others view the situation as highlighting a broader shift in energy geopolitics. India's crude imports from Venezuela have already declined significantly in recent years.
Despite the potential for increased U.S. access to Venezuelan crude oil, Canada remains committed to making its oil competitive through carbon capture and other measures. The development of alternative and sustainable solutions like bio-bitumen is crucial for India to ensure its energy security and reduce its dependence on crude oil imports.
