Key Problems of Oil and Gas Sector
Posted on : 12 Feb 2020Views: 373
- 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
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