Topic : Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
6. Analyse the big picture of India’s Strategic Oil Reserves and Energy Security. (250 words)
Reference: live mint
Why the question:
The question is straightforward and is about analyzing the current conditions of India’s Strategic Oil Reserves and Energy Security.
Key Demand of the question:
Present detailed analysis of India’s Strategic Oil Reserves and Energy Security.
Analyze – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.
Structure of the answer:
India, the world’s third largest crude oil importer has an existing storage capacity of 5.3 million tonnes at Visakhapatnam, Mangaluru and Paadoor, built at an investment of $600 million in the first phase.
This is operational and can support 9.5 days of net imports. In addition, the government has approved the construction of an additional 6.5 million tonnes of strategic crude oil reserves. Strategic crude oil reserves, which are typically state-funded and meant to tackle emergency situations, allow a country to tide over short-term supply disruptions.
The rout of crude oil to multi-year lows presents India with a great opportunity to fill up its storage and strategic petroleum reserves (SPRs). Storing oil now at low prices will enhance the country’s energy security, given its high import dependency.
Conclude with importance.