Oil price pickle
PAPER- GS-III OIL CRISIS
The increased duty on fuel can fund welfare, but arbitrary methods will have implications
Union Petroleum Minister that the Centre is taking a ‘cautious and conscious approach’ of ensuring a balance in fuel prices and aims to use the resultant savings for welfare is on the face of it unexceptionable. With global oil prices still about 45% lower than 2019 closing levels despite coordinated supply cuts by major producers, In
Sustainable Alternative towards Affordable Transportation (SATAT)
The Sustainable Alternative towards Affordable Transportation (SATAT) scheme on Compressed Bio Gas was launched in 2018. It envisages targeting the production of 15 MMT of CBG from 5000 plants by 2023. The Government of India has taken various enabling steps to ensure the success of the SATAT scheme.
Oil Marketing Companies have offered long-term pricing on CBG to make projects bankable and have agreed
Why India is producing less and less oil
India’s crude oil production fell 7.1% in May 2020 compared to May 2019 on the back of low demand due to the Covid-19 pandemic.
Domestic production of crude has, however, been falling every year since FY 2012.
Annual crude oil production has fallen at a compounded annual rate of 2.1% since to 32,169.3 thousand Metric Tonnes (TMT) in FY 2020 from 38,089.7 TMT in FY 2012.
This has led to a steady climb in the proporti
Production of poppy straw from opium
The Union government has decided to rope in the private sector to commence production of concentrated poppy straw from India’s opium crop to boost the yield of alkaloids, used for medical purposes and exported to several countries.
Poppy straw is the husk left after the opium is extracted from pods.
This poppy straw also contains a very small morphine content and if used in sufficient quantities,
Strategic Petroleum Reserves in India
It is a storage of crude oil which would act as a cushion during any external supply disruptions or supply-demand mismatch shock.
The global standard for strategic oil reserves, as set by the International Energy Agency (IEA) and Integrated Energy Policy 2006 of India recommended that country should maintain a reserve equivalent to 90 days of oil imports for strategic- cum-buffer stock purpo