Parliament Passes Oilfields Amendment Bill 2024 for Energy Sector

Why in the News?

The Oilfields (Regulation and Development) Amendment Bill, 2024 has been passed by Parliament, expanding the definition of mineral oils. It aims to enhance energy security, while opposition parties raise concerns over rising imports and declining domestic production.

Parliament Passes Oilfields Amendment Bill 2024 for Energy Sector

Key Provisions of the Bill:

  • The Oilfields (Regulation and Development) Amendment Bill, 2024 has been passed by Parliament, with the Lok Sabha approving it today.
  • The Bill amends the Oilfields (Regulation and Development) Act, 1948 to expand the definition of mineral oils, now including naturally occurring hydrocarbons, coal bed methane, and shale gas.
  • It clarifies that coal, lignite, and helium will not be considered mineral oils.

Government’s Perspective on Energy Security

  • Petroleum Minister Hardeep Singh Puri emphasized India’s strategy for energy security, focusing on affordability, availability, and sustainability.
  • He highlighted that India currently imports oil from 40 countries, prioritizing cost-effective and reliable sources.
  • The Minister noted an increased supply from Brazil, Guyana, Suriname, Canada, and the USA, reducing dependency on traditional suppliers.
  • He expressed confidence that India will continue successfully managing its energy needs through market leverage.

Concerns and Opposition Views

  • Manish Tiwari (Congress) pointed out a decline in domestic crude oil production from 46 million metric tonnes (2014-15) to 29.4 million metric tonnes (2023-24), while imports increased from 189.43 to 243.3 million metric tonnes.
  • Pratima Mondal (TMC) questioned the government’s efforts toward self-reliance in energy.
  • Ramshankar Rajbhar (SP) raised concerns about rising fuel prices affecting the public.
  • Other MPs from IUML, BJP, YSRCP, Shiv Sena, JD(U), TDP, and DMK participated in the discussion.

Key pints: Oilfields Amendment Bill 2024:

  • Expanded Definition of Mineral Oils: Now includes naturally occurring hydrocarbons, coal bed methane, and shale gas/oil, while excluding coal, lignite, and helium.
  • Petroleum Leases: Replaces “mining leases” with “petroleum leases”, ensuring existing leases under the 1948 Act remain valid.
  • Penalties: Criminal penalties replaced with financial fines—up to â‚ą25 lakh, with daily fines of â‚ą10 lakh for ongoing violations.
  • Private Investment: Encourages private sector participation while protecting existing leaseholders’ rights.
  • Government Oversight: Expands rule-making powers for lease regulations, environmental protection, and dispute resolution.
  • Adjudication: Joint Secretary-level officers will adjudicate penalties; appeals go to PNGRB’s Appellate Tribunal.
  • PNGRB’s Role: Regulates gas distribution, pipelines, tariffs, and safety under the Ministry of Petroleum and Natural Gas.