India's estimated natural gas reserves were 1339.57 billion cubic meters as of March 31, 2018. (BCM). India produced 35.2 million tonnes of petroleum products from domestic crude oil production, compared to 204.9 million tonnes of consumption. Similarly, India produced 31.7 billion cubic meters of natural gas against a demand of 58.1 billion cubic meters. India was the fifth largest LNG importer in 2019. This article will explain to you about Petroleum and Natural Gas which will help prepare Geography for the UPSC Civil service exam.

What are Petroleum and Natural Gas?

• Natural gas and petroleum are nonrenewable energy sources.
• Petroleum is a liquid mixture that can be used to make gasoline, diesel fuel, and a variety of other products. It is found underground.
• Petroleum is also referred to as crude oil or simply oil.
• Natural gas is a mixture of gases, the majority of which is methane. Natural gas is sometimes simply referred to as "gas."
• Natural gas is discovered underground in the same way that petroleum is.
• Natural gas is combustible (burns with a flame).

Distribution of Natural Gas in India

• Gulf of Kutch, Gulf of Khambhat, Bassein field, Bombay High, Rajasthan's Barmer, KG basin, Tamil Nadu's Cuddalore district, Odisha, Assam, Tripura, and so on.
• India's economically viable natural gas reserve is 541 BCM (on-shore, Assam, and Gujarat), plus 190 BCM offshore in the Gulf of Cambay and 190 BCM in the Bombay High.
• In the Tripura Basin, a massive reserve of 400 BCM was recently discovered.
• Aside from them, 72 BCM is in the Rava structure, and there is a large reserve around the Andaman and Nicobar islands.
• Andaman and Nicobar reserves are estimated to be around 1700 BCM based on remote sensing data.
• Its economic viability has yet to be determined, which is why no production has yet begun.
• For the next 100 years, this reserve will solve India's problems or needs. Eastern India may experience an economic revolution as a result of this.

Distribution of Petroleum in India

• The process began around 3 million years ago, during the tertiary period.
• The majority of India's oil reserves are linked to anticlines and fault traps in tertiary sedimentary rock formations.
• Despite the fact that India's sedimentary rocks cover vast sections of the country, structures containing oil are uncommon and only found in a few places.
• According to the Indian Mineral Year Book of 1982, a total reserve of 468 million tonnes was estimated, with 328 million tonnes available in Mumbai High.
• The reserves were estimated to be 500 million tonnes in 1984.
• Guwahati, Barauni, Koyali, Haldia, Mathura, Digboi, Panipat, Chennai, Narimanam, Bongaigaon, Mumbai (HPCL), Visakhapatnam, Mumbai (BPCL), Kochi, Numaligarh, Tatipaka (ONGC), and Bina (M.P.) are among the seventeen public sector refineries.
• These plants have a combined refining capacity of 75.95 million tonnes per year.

Government Initiative

• The Indian Gas Exchange (IGX) is an online natural gas trading platform with delivery hubs in Maharashtra's Dabol and Jaighar, Gujarat's Dahej and Hazira, and Andhra Pradesh's Kakinada.
• The Petroleum and Natural Gas Regulatory Board (PNGRB) was established in 2005 to oversee downstream petroleum and natural gas activities.
• Buyers can transport purchased natural gas from these hubs to their consumption points on a daily basis via chargeable cross-country gas pipelines (owned by GAIL and others).
• On February 28, 2019, the government announced "Reforms in Exploration and Licensing Policy, for enhancing domestic exploration and production of oil and gas," with the goal of increasing exploration, attracting foreign and domestic investment, and increasing domestic production.
• All offshore blocks have already been granted Petroleum Exploration Licences (PELs), and the Central Government has recommended that all concerned State Governments grant PELs for all on-land blocks allocated under the Hydrocarbon Exploration and Licensing Policy (HELP) regime.

Uses of Natural Gas

• During the nineteenth and twentieth centuries, natural gas was primarily used for street and household lighting.
• It now has a much wider range of applications in both domestic and industrial settings.
• It is used to turn turbines for the generation of wind and solar energy.
• It's also a domestic fuel. It heats our homes and runs heaters, ovens, boilers, and other appliances.
• Some households use compressed natural gas (CNG), which is gas stored at a high pressure, for heating and cooking.
• CNG is also a cost-effective and environmentally friendly transportation fuel for low-load vehicles that require high fuel efficiency.
• LNG, or liquefied natural gas, is used to power vehicles like off-road trucks and trains.
• It is used in the generation of electricity.
• CNG is now used by a large number of buses and commercial vehicle fleets.
• It's a component of dyes and inks.
• Rubber compounding operations use this material.
• Hydrogen derived from methane is used to make ammonia. Ammonia is used to make a variety of chemicals, including hydrogen cyanide, nitric acid, urea, and fertilisers.

Uses of Petroleum

• The majority of motive power comes from petroleum and petroleum products.
• It's a small, lightweight liquid fuel that's changed the way people travel on land, in the air, and on the water.
• Tankers can transport it easily from the producing areas to the consuming areas, but pipelines are more convenient, efficient, and cost-effective.
• It produces very little smoke and no ash (as is the case with coal) and can be used to the very last drop.
• It is an important raw material for various petro-chemical products and provides the most important lubricating agents.

Importance of Natural Gas

• Currently, the production of fertilisers consumes the majority of natural gas, accounting for about 40% of total consumption.
• About 30% is used in power generation, and 10% is used in the production of LPG.
• Nearly 10% of India's electricity was generated by gas-fired power plants.
• Despite the fact that the country is experiencing a power shortage, gas power stations are idle due to a lack of feedstock.
• Existing plants are running at less than full capacity due to the high cost of imported liquefied natural gas (LNG).

Importance of Petroleum

• When we talk about agriculture we are talking about fertilisers.
• Petroleum is used in the production of ammonia, which is used as a nitrogen source.
• In this case, the Haber process is used. Oil is also used to make pesticides.
• Overall, petroleum-based products are widely used in agriculture because they aid in the operation of farm machinery and fertiliser plants.
• Petroleum distillates such as toluene, benzene, and xylene, among others, are used to make raw materials for products such as synthetic detergents, dyes, and fabrics.
• Polyurethanes, which are made up of benzene and toluene, are commonly used in oils and surfactants, as well as in varnishing wood.
• Petrochemicals are used to make the majority of plastics.
• Oil-based paints and paint additives are also made with petrochemicals.
• Photographic film contains ethylene, a petrochemical.
• Petrochemicals are also used to make synthetic rubber, which is then used to make rubber soles for shoes, automobile tyres, and other rubber products.

Conclusion

India's oil reserves are insufficient to meet the country's growing energy demands, and policy inaction is exacerbating the problem by lengthening the project's gestation period. We need to diversify our energy portfolio by using alternative fuels so that we are not as vulnerable to external shocks. Petroleum and Natural gas accounts for roughly a quarter of the world's energy consumption. In India, however, it accounts for only 6% of total energy consumption, with crude oil and coal dominating. The Indian government has stated that natural gas will account for 15% of the country's energy mix by 2030.

FAQs

Question: What is petroleum and how is it formed?

Question: What are the primary uses of natural gas?

Question: Which countries are the largest producers of petroleum?

Question: What is the significance of petroleum and natural gas in India’s energy sector?

Question: What are the environmental impacts of petroleum and natural gas extraction?

MCQs

1. What is the main component of natural gas?

a) Butane

b) Methane

c) Propane

d) Ethane

2. Which country is the largest producer of petroleum as of recent data?

a) United States

b) Saudi Arabia

c) Russia

d) China

3. Which region in India is known for its petroleum production?

a) Rajasthan

b) Gujarat

c) Assam

d) Maharashtra

4. What is CNG, commonly used in transportation?

a) Compressed Natural Gas

b) Condensed Nitrogen Gas

c) Chemical Natural Gas

d) Combined Nitrogen Gas

5. What is one of the primary environmental concerns associated with petroleum extraction?

a) Deforestation

b) Water pollution due to oil spills

c) Noise pollution

d) Overuse of land for agriculture

GS Mains Questions and Model Answers

Q1: "India's dependency on imported petroleum poses significant economic and strategic challenges." Discuss the impact of this dependency and suggest measures to reduce it.

Answer: India's dependency on imported petroleum poses several economic and strategic challenges. Fluctuating global oil prices can lead to economic instability, increasing inflation and widening the trade deficit. Geopolitical tensions in major oil-producing regions, such as the Middle East, also threaten India’s energy security. Additionally, reliance on petroleum contributes to environmental concerns, including air pollution and carbon emissions. To reduce this dependency, India needs to diversify its energy sources by promoting renewable energy, increasing domestic exploration, and enhancing energy efficiency in industrial and transportation sectors. Strengthening strategic petroleum reserves and fostering international partnerships for energy security are also critical steps.

Q2: Analyze the environmental impacts of petroleum extraction and suggest strategies for mitigating these impacts while ensuring energy security.

Answer: Petroleum extraction can have severe environmental impacts, including habitat destruction, oil spills, air pollution, and greenhouse gas emissions. Oil spills can devastate marine ecosystems, while drilling activities may lead to land degradation and water contamination. To mitigate these impacts, it is essential to implement strict environmental regulations, adopt best practices in extraction and transportation, and invest in clean-up technologies. Transitioning to cleaner fuels like natural gas and renewable energy sources can help reduce the reliance on petroleum. Additionally, promoting energy efficiency and reducing overall demand for petroleum can lessen the environmental burden while maintaining energy security.

Q3: Discuss the significance of natural gas in India’s energy mix and the challenges in expanding its usage.

Answer: Natural gas plays an increasingly important role in India’s energy mix due to its lower environmental impact compared to coal and oil. It is used for electricity generation, industrial processes, and as a cleaner fuel for transportation (CNG). Expanding natural gas usage is crucial for reducing carbon emissions and improving air quality in India’s cities. However, challenges include insufficient infrastructure, such as pipelines and storage facilities, and the high cost of importing liquefied natural gas (LNG). To overcome these challenges, India must invest in expanding its natural gas infrastructure, encourage domestic production, and promote the adoption of natural gas in industries and households.

Previous Year Questions on  Petroleum and Natural Gas

1. UPSC CSE 2018

Q1: Discuss the role of natural gas in the global energy transition and its advantages over coal. 

Answer: Natural gas plays a crucial role in the global energy transition as a cleaner alternative to coal. It produces fewer carbon emissions and pollutants when burned, making it a preferred option for electricity generation. Natural gas also has higher efficiency compared to coal, which contributes to reducing greenhouse gas emissions. The shift from coal to natural gas is a key strategy for countries aiming to lower their carbon footprint and meet international climate commitments. However, concerns regarding methane leaks during extraction and transportation need to be addressed to maximize its environmental benefits.

2. UPSC CSE 2019

Q2: Examine the challenges faced by India in securing its petroleum and natural gas resources.

Answer: India faces several challenges in securing its petroleum and natural gas resources. The country relies heavily on imports, with around 85% of its crude oil demand met through imports. This dependency exposes India to global oil price volatility and geopolitical tensions in oil-producing regions. Domestic production has not kept pace with rising demand due to limited exploration and extraction technologies. Additionally, India’s natural gas infrastructure, including pipelines and storage, needs significant expansion to meet the growing demand. Diversification of energy sources, increasing domestic exploration, and investing in renewable alternatives are essential to address these challenges.