Sambhav-2024

• Start the answer with a discussion that sets a context for the question.
• Discuss the distribution of petroleum resources in India.
• Explain the growing demand for strategic petroleum reserves in the country.
• Conclude suitably.

Introduction

Petroleum reserves play a crucial role in ensuring energy security for India. Petroleum reserves contribute significantly to India's economic growth by supporting various industries and sectors. India's petroleum reserves are distributed across various sedimentary basins, both onshore and offshore.

Body

Major regions where petroleum reserves are found in India:

• Assam-Arakan Basin: Stretching across northeastern India and parts of Myanmar, the Assam-Arakan Basin is one of the oldest petroleum-producing regions in India. It includes onshore oil and gas fields such as the Digboi and Naharkatiya fields in Assam.
• Mumbai Offshore Basin: Located off the western coast of India, the Mumbai Offshore Basin is one of the most prolific petroleum-producing regions in the country.
• Krishna-Godavari Basin: Situated along the eastern coast of India, the Krishna-Godavari Basin is known for its significant natural gas reserves.
• Cambay Basin: Located in the western part of India, the Cambay Basin is known for its oil and gas reserves. It hosts several onshore oil and gas fields, including the Ankleshwar and Kalol fields, which are among the oldest producing fields in India.
• Rajasthan Basin: Situated in northwestern India, the Rajasthan Basin is known for its onshore oil reserves. The Barmer Basin, within the Rajasthan Basin, is home to the Mangala, Bhagyam, and Aishwariya fields.
• Potential Petroleum Reserves: India has several other sedimentary basins with potential petroleum reserves, including the Cauvery Basin, the Gujarat Basin, the Saurashtra Basin, and the Ganga Basin.

Strategic petroleum reserves (SPRs) are stockpiles of crude oil maintained by countries ensuring a stable supply of crude oil even during times of geopolitical uncertainty or supply disruptions. These underground storage facilities play a crucial role in maintaining a steady flow of energy resources for the nation's growth and development.

• Reasons for Growing Demand for Strategic Petroleum Reserves (SPRs) in India:
  • Energy Security: Strategic Petroleum Reserves (SPRs) play a crucial role in ensuring the availability of crude oil during supply disruptions caused by geopolitical tensions, natural disasters, or other emergencies.
  • Price Volatility Mitigation: Establishing SPRs allows India to buffer against price volatility by purchasing and storing crude oil when prices are low and releasing it during periods of high prices.
  • Strategic Diplomacy: By demonstrating its ability to manage energy supply risks through strategic reserves, India can negotiate favorable terms in energy trade agreements and strengthen diplomatic ties with oil-producing nations.
  • Infrastructure Development: The establishment of SPR infrastructure, including storage facilities and associated infrastructure, not only supports the storage of strategic reserves but also enhances logistical capabilities for crude oil transportation and distribution, benefiting the entire energy sector.
• Current SPR Infrastructure and Capacity in India: India's existing underground SPR facilities have a combined capacity of 5.33 Million Metric Tonnes (MMT) of crude oil. These storage sites are strategically positioned across two states:
  • Visakhapatnam, Andhra Pradesh - 1.33 MMT capacity
  • Mangaluru, Karnataka - 1.5 MMT capacity
  • Padur, Karnataka - 2.5 MMT capacity
• Expansion Plans and Commercial-Cum-Strategic Facilities: Recently, the Indian Government granted approval for the establishment of two additional commercial-cum-strategic SPR facilities.
  • Chandikhol, Odisha - 4 MMT capacity
  • Padur, Karnataka - 2.5 MMT capacity (expansion)
  • These facilities, totaling a storage capacity of 6.5 MMT, will operate under a Public Private Partnership (PPP) mode.

Conclusion

As India continues to expand its energy infrastructure and strengthen its position in the global energy market, petroleum reserves will play an increasingly critical role in safeguarding the country's energy interests and ensuring sustainable economic growth.