About MCX Crude Oil :
Crude oil is a complex mixture of various hydrocarbons found in the upper layers of the earth’s crust. Crude oil is often attributed as the “Mother of all Commodities” because of its importance in the manufacturing of a wide variety of materials. Crude oil accounts for 35% of the world’s primary energy consumption. Crude oil is used to produce fuel for cars, trucks, airplanes, boats and trains. It is also used for a wide variety of other products including asphalt for roads, lubricants for all kinds of machines; plastics for toys, bottles, food wraps, among others.
The Government of India realised the need to explore more areas and has implemented New Exploration Licensing Policy (NELP), according to which 100% FDI is permitted for small and medium sized oil fields through competitive bidding. Oil accounts for 29% of India’s total energy consumption and there seems to be no possibility of scaling down the dependence on these fuels.
About MCX Natural Gas :
Natural gas is a vital component of the world’s supply of energy. It is one of the cleanest, safest, and most useful of all energy sources. Natural gas is a combustible mixture of hydrocarbon gases. While natural gas is formed primarily of methane, it can also include ethane, propane, butane and pentane. Natural gas is likely to play a greater role in the world energy mix given its growing resource base and its relatively low carbon emissions compared to other fossil fuels. Natural gas, when compressed at a pressure of 250 bars, is termed as compressed natural gas (CNG).
The balance recoverable natural gas reserves in the country is 1240.9 bcm, which accounts for only 0.6% of the world’s total natural gas reserves. As India does not have any pipeline connection, all the gas currently imported is LNG. India’s current operational LNG import capacity is 18 bcm.