IGNOU BEE 2 2018 - Outline the various options for (i) Ensuring energy security,(ii) Impr

Question

Outline the various options for (i) Ensuring energy security,(ii) Improved resource management, and (iii) Use of energy efficient technologies.

28 Mar 2018

Answer :

Word Count : 453

Supply side factors From the supply side, the most important and immediate step to improve the energy security will be to diversify the sources.

The diversification of sources involves attacking it from three angles — enhancing exploration efforts within the country; pursuing upstream investment overseas; and looking for alternative sources. Besides these, `stockpiling' can smoothen any supply shocks.

As for enhancing exploration efforts, the New Exploration Policy (NEP) has proved to be appropriate as the number of private and foreign players engaged in oil exploration on-shore and off-shore has gone up.

One policy lacuna here is that foreign firms are not yet allowed to set up refineries. Given the highly vertically integrated nature of the industry, this constraint may dissuade oil majors

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