The Oilfields (Regulation and Development) Amendment Bill, 2024, introduced in Rajya Sabha in August 2024 expands definition of mineral oils to include which of the following? 

The correct answer is Petroleum and natural gas.

Key Points

• The Oilfields (Regulation and Development) Amendment Bill, 2024 aims to expand the scope of mineral oils to include petroleum and natural gas, aligning the definition with modern industrial and regulatory requirements.
• Petroleum refers to a naturally occurring, yellow-to-black liquid found beneath the Earth's surface, which is refined into various fuels, including gasoline, diesel, and kerosene.
• Natural gas is a naturally occurring hydrocarbon gas mixture consisting primarily of methane, used for energy generation, heating, and as an industrial feedstock.
• The inclusion of these resources in the definition ensures better governance and regulation, as these are critical components of India's energy sector.
• The amendment reflects India's focus on enhancing its energy security and aligning with global energy standards.
• This step also facilitates better management of resources under the ambit of the Ministry of Petroleum and Natural Gas.
• The expanded definition helps to create a robust framework for exploration, production, and distribution, fostering investment in the sector.
• The bill is expected to streamline regulatory processes and encourage private and foreign investments in India's upstream oil and gas industry.
• India's energy needs are rapidly growing, and this amendment ensures the optimal utilization of natural resources to meet domestic and industrial demands.

 Additional Information

• Crude oil and diesel
  • Crude oil is unrefined petroleum extracted directly from geological formations, while diesel is a refined product derived from crude oil.
  • These are essential components of the energy sector, but the bill focuses on upstream activities like exploration and production rather than refined products.
  • Diesel falls under the category of refined fuels and is not considered a mineral oil in the context of exploration and development laws.
• Biofuels and ethanol
  • Biofuels are derived from organic materials such as plant matter, while ethanol is a renewable fuel made from crops like sugarcane and corn.
  • These are renewable energy sources and are regulated under separate policies, such as the National Bio-Energy Mission.
  • The amendment bill does not include biofuels and ethanol as it focuses on non-renewable resources like petroleum and natural gas.
• Coal and lignite
  • Coal is a sedimentary rock used primarily for power generation and industrial purposes, while lignite is a lower-grade form of coal.
  • These resources fall under the jurisdiction of the Ministry of Coal, governed by separate laws like the Coal Mines Act.
  • Coal and lignite are not categorized as mineral oils, hence excluded from the scope of the amendment bill.