General Studies – Key Concepts (Global Oil & Energy Security)
1. Fossil Fuels
Fossil fuels are non-renewable energy resources formed from the remains of ancient plants and animals. Examples include crude oil, coal, and natural gas.
- Finite and exhaustible resources
- Major contributors to global energy supply
- Cause environmental pollution
👉 Exam Point: Fossil fuels are the primary source of global energy but are unsustainable in the long run.
2. OPEC (Organization of the Petroleum Exporting Countries)
OPEC is an intergovernmental organization of major oil-exporting countries that coordinate policies to regulate oil production and stabilize prices.
- Controls significant portion of global oil supply
- Influences global oil prices
- Includes major Middle East producers
👉 Exam Point: OPEC decisions directly impact global oil markets.
3. Energy Security
Energy security refers to the uninterrupted availability of energy sources at affordable prices.
- Stable supply of energy
- Diversification of sources
- Reduced import dependency
👉 Exam Point: Energy security is crucial for economic stability and national security.
4. Strategic Petroleum Reserves (SPR)
SPR are emergency fuel storage systems maintained by governments to ensure energy supply during crises.
- Buffer against supply disruptions
- Maintains price stability
- Used during emergencies
👉 Exam Point: India has developed SPR to enhance energy security.
5. Price Volatility
Price volatility refers to frequent fluctuations in oil prices due to various economic and geopolitical factors.
- Supply-demand imbalance
- Geopolitical tensions
- Market speculation
👉 Exam Point: Oil price volatility impacts inflation and economic growth.
General Studies | Economy | Energy Security
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