Enhanced and Improved Recovery Policy for Oil and Gas

Policy Update

The government is set to notify a modified version of the Enhanced Recovery (ER) and Improved Recovery (IR) policy for oil and gas in 2025. This new policy aims to replace the existing 2018 framework, providing better financial incentives to ensure the commercial viability of projects.

• The expert committee submitted the draft Modified ER Policy, 2023, but it hasn't been adopted yet.
• The new policy is expected to address issues identified during studies and deliberations.

Existing Policy and Challenges

The 2018 policy framework was designed to promote ER and IR methods with fiscal incentives. It also included a provision for a review after five years, initiated in June 2023.

• India's recovery levels stand at 60% for oil fields and 80% for gas fields, as per the latest estimates from 2018.
• Declining oil and gas production is attributed to legacy wells with decreasing productivity.

Industry Concerns

• Both public and private sector companies call for policy updates to address productivity issues.
• Current ER/IR techniques are costly, and existing fiscal incentives are deemed insufficient.
• Administrative processes for availing incentives are cumbersome, requiring higher recovery rates and facing limitations like price ceilings.

Production and Import Dependency

• India's oil production has been on a decline since 2011-12, with FY24 production at 29.4 million tonnes, down from 38.1 million tonnes in 2011-12.
• The country remains a net importer of hydrocarbons, with import dependency rising to 87.8% in FY24 from 83.8% in 2018-19.

Significant Players

• Reliance Industries and Cairn Oil & Gas are major private sector companies engaged in upstream activities.
• National oil companies include Oil and Natural Gas Corporation (ONGC) and Oil India.

Upcoming Policy Benefits

• The new policy aims to provide better financial incentives for ER and IR projects.
• It is expected to address previous administrative and financial challenges faced by companies.

Indian Ocean Tsunami of 2004

Overview: The Indian Ocean tsunami in 2004 ranks as one of history's deadliest natural disasters. Many survivors had never heard of tsunamis before encountering them.

• Syamsidik, an engineer from Indonesia, initially believed tsunamis only affected Japan due to its origin as a Japanese term.
• The tsunami was triggered by a 9.1-magnitude earthquake near Sumatra, Indonesia, creating waves as high as 16 stories and speeds up to 300 miles per hour.

Challenges and Responses

Initial Shock

• Earthquake sensors indicated potential dangers, but the warning system was limited to the Pacific Ocean region, leaving the Indian Ocean unmonitored.

Scientific and Technological Advances

Significant developments have been made in tsunami monitoring and forecasting since 2004.

• The Deep-ocean Assessment and Reporting of Tsunamis (DART) network now includes over 70 sensors globally, tracking water conditions in tsunami-prone zones.
• NOAA and other countries have improved tsunami forecasting models, providing better predictions up to 30 minutes before waves hit.

Global Efforts and Challenges

• Despite efforts, achieving zero tsunami deaths remains challenging, as seen in the 2011 Japan disaster.
• Experts acknowledge the difficulty in balancing speed and accuracy in global early warning systems.

Impact and Aftermath

• The 2004 tsunami affected 17 countries, resulting in nearly 250,000 deaths and displacing 1.7 million people, mainly in Indonesia's Aceh province.
• Property damage was estimated at $13 billion, leaving some areas unrecognizable.

Lessons Learned

• There has been a heightened emphasis on enhancing tsunami education and preparedness globally.
• Emergency response systems and safety guidelines have been improved for vulnerable coastal communities.

Conclusion

While strides have been made in tsunami warning and preparedness, continuous efforts are necessary to further minimize risks and enhance global safety protocols.