Question of the Day – Oilfields (Regulation and development)amendment bill,2024
QOTD March 7,2026
Consider the following statements:
- The oilfields (regulation and development) amendment bill, 2024 seeks to expand the definition of mineral oils to include shale oil, shale gas and other unconventional hydrocarbons.
- The bill aims to encourage private sector participation and improve the ease of doing business in the upstream petroleum sector.
- Under the proposed amendment, states will be given complete ownership over petroleum resources located within their territorial boundaries.
- The amendment introduces provisions to promote carbon capture, utilization and storage activities in oil and gas fields.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 1, 2 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4
Answer: (b) 1, 2 and 4 only
Explanation:
Statement 1-correct
The amendment bill expands the definition of mineral oils to include unconventional hydrocarbons such as shale oil and shale gas.
Statement 2-correct
One of the objectives of the amendment is to increase investment and improve ease of doing business in the upstream oil and gas sector.
Statement 3-incorrect
Ownership of petroleum resources remains with the union government; states are not given complete ownership.
Statement 4-correct
The amendment allows new activities such as carbon capture, utilization and storage in oil and gas fields to promote energy transition initiatives.
Why in news–
The Oilfields (Regulation and Development) Amendment Bill, 2024 was in news after policy discussions and analysis by the IMPRI Impact and Policy Research Institute regarding its impact on India’s hydrocarbon sector. The bill proposes amendments to the Oilfields (Regulation and Development) Act, 1948, which regulates exploration and production of petroleum resources in India. It seeks to modernize the legal framework governing oil and gas exploration. The amendment expands the definition of mineral oils to include unconventional hydrocarbons such as shale oil and shale gas. It also aims to improve ease of doing business and attract greater private and foreign investment in the upstream petroleum sector. The bill introduces provisions to support emerging activities like carbon capture, utilization and storage in oil and gas fields. It is expected to strengthen India’s energy security by promoting domestic exploration. Policy experts have debated its regulatory and environmental implications. The discussion by IMPRI has brought attention to the economic and governance aspects of the reform. Hence, the bill has gained importance in current policy discourse and energy sector reforms.
There are more questions from this topic that you should practice to make your concepts stronger.
Practice Questions (PQ)
PQ1. Consider the following statements regarding the regulation of petroleum and natural gas in india:
- The oilfields (regulation and development) act, 1948 provides the legal framework for granting licenses and leases for exploration and production of petroleum.
- The directorate general of hydrocarbons functions under the ministry of petroleum and natural gas and regulates upstream activities.
- The petroleum and natural gas regulatory board regulates exploration and production of crude oil and natural gas.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: (a)1 and 2 only
Explanation
Statement 1-Correct
The oilfields (regulation and development) act, 1948 provides the legal basis for regulating exploration and production of petroleum resources in india.
Statement 2-Correct
The directorate general of hydrocarbons works under the ministry of petroleum and natural gas and oversees technical regulation of upstream petroleum activities.
Statement 3-Incorrect
The petroleum and natural gas regulatory board regulates downstream activities such as pipelines, transportation and distribution of petroleum and natural gas, not exploration and production.
PQ2. Consider the following statements about unconventional hydrocarbons:
- Shale gas is trapped within shale formations and requires techniques like hydraulic fracturing for extraction.
- Coal bed methane is extracted from coal seams where methane is adsorbed onto the coal surface.
- Tight oil and tight gas occur in highly permeable rocks which allow easy flow of hydrocarbons without stimulation.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: (a)1 and 2 only
Explanation:
Statement 1-correct
Shale gas is trapped in low permeability shale formations and extraction usually requires hydraulic fracturing and horizontal drilling.
Statement 2-correct
Coal bed methane is natural gas stored in coal seams and is extracted by drilling wells and reducing pressure in the coal seam.
Statement 3-incorrect
Tight oil and tight gas occur in low permeability rocks where hydrocarbons cannot flow easily and require stimulation techniques such as hydraulic fracturing.
PQ3. Consider the following statements with reference to india’s hydrocarbon exploration policy:
- The hydrocarbon exploration and licensing policy (help) replaced the new exploration licensing policy (nelp).
- Help introduced a uniform licensing system allowing exploration of all hydrocarbons under a single license.
- Help introduced revenue sharing contracts instead of profit sharing contracts between the government and contractors.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1, 2 and 3
(d) 1 and 3 only
Answer: (c) 1, 2 and 3
Explanation:
Statement 1-correct
The hydrocarbon exploration and licensing policy was introduced in 2016 replacing the new exploration licensing policy.
Statement 2-correct
Help introduced a uniform licensing system allowing companies to explore for conventional and unconventional hydrocarbons under a single license.
Statement 3-correct
The policy replaced the earlier profit sharing model with a revenue sharing model to simplify contracts and increase transparency.
Previous Year Question (UPSC Prelims)
Consider the following statements with reference to shale gas:
- Shale gas is a form of natural gas found trapped within shale formations.
- Extraction of shale gas involves hydraulic fracturing.
- Shale gas is considered a renewable source of energy.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: (a) 1 and 2 only
Explanation
Statement 1-correct
Shale gas is natural gas trapped in fine-grained shale rock formations.
Statement 2-correct
Hydraulic fracturing is commonly used to extract shale gas by creating fractures in the rock to release the gas.
Statement 3-incorrect
Shale gas is a fossil fuel and therefore a non-renewable source of energy.
