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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 purposes. The crude oil storages are constructed in underground rock caverns and are located on both the East and West coast of India. They are considered to be more environment friendly and incur less evaporation loss than ground level storage. Construction of storage facilities are maintained by Indian Strategic Petroleum Reserves Limited (an SPV of the…
24 November, 2021
Oil Crisis
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: 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, poppy straw can give a high. Possession, sale, use, etc. of poppy straw is regulated by the State Governments under the State Narcotic Drugs & Psychotropic…
08 April, 2021
Oil Crisis
Sustainable Alternative towards Affordable Transportation (SATAT) SATAT Scheme 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 to execute long-term agreements on CBG. Under the SATAT scheme, IOT Biogas Limited (Namakkal, Tamil Nadu) decided to divert part/full biogas production to Compressed Biogas (CBG) generation. The…
28 June, 2020
Oil Crisis
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, India had an opportunity to pass on the benefit to consumers and provide a fillip to becalmed consumption. Imp Points That the ‘deregulated’ oil marketing…
27 May, 2020
Oil Crisis
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