Key Problems of Oil and Gas Sector
Posted on : 12 Feb 2020
Views: 1132- Declining domestic crude production: Most of the producing fields (in Cambay, Assam-Arakan and Mumbai Offshore) are maturing or have already matured. Due to inadequate new oil and gas discoveries and subsequent development, India is witnessing a decline in crude production.
- Large crude import bills: In 2018-19, India imported more than 80% of its crude consumption and spent in excess of $110 billion.
- Inadequate transmission & distribution infrastructure: India needs to invest heavily in midstream and downstream sector to overcome infrastructure constraints in LNG, gas pipelines and CGD.
- Technology constraints: The country needs investment in exploring and developing Category-2 and Category-3 basins. However, Indian operators do not have the requisite technology and experience in this area.
- Low share of MNCs: Despite being one of the largest consumers of energy, India has a low share of MNCs in the domestic market.
- Environmentally friendly fuels: India continues to rely heavily on coal and petroleum products to meet its energy needs.
Article Related Questions
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What are the various problems that currently ail Indian oil and gas sector?
1.Declining domestic crude production
2.Large crude import bills
3.Inadequate transmission & distribution infrastructure
4.Large share of MNCs
Choose the correct option
1.1, 2 and 3
2.1 and 2 only
3.1, 2, 3 and 4
4.3 and 4 only
Right Ans : 1, 2 and 3
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