UPSC Essentials | Mains answer practice — GS 3 : Questions on surge in global crude oil prices and desalination technology (Week 145)

QUESTION 2

The growing reliance on desalination technology has made water infrastructure a strategic asset in geopolitically sensitive regions. Discuss the strategic importance of desalination plants in arid regions and their implications for regional stability and water security.

QUESTION 1: The surge in global crude oil prices due to geopolitical tensions highlights India’s vulnerability to external energy shocks. Discuss the economic implications of high crude oil prices and suggest measures India can adopt to enhance its energy security.

Relevance: Rising oil prices affect inflation, fiscal deficit, current account deficit, and exchange rate stability. The issue highlights the need for energy diversification, strategic petroleum reserves, and renewable energy transition, key themes in GS-3.

Note: This is not a model UPSC answer. It only provides you with a thought process which you may incorporate into the answers.

Introduction:

— As the Iran war rages, crude oil prices have risen 30% to above $120 per barrel, a level not seen since 2022.

— There are mounting concerns of a lengthy supply interruption as a result of the effective suspension of tanker movements through the vital chokepoint of the Strait of Hormuz, as well as major Gulf oil companies lowering production as storage runs out.

Body:

You may incorporate some of the following points in your answer:

Economic implications of high crude oil prices

— The intensifying attacks of oil infrastructure in the region contributed to the surge in prices. India’s economy is vulnerable to oil price volatility as the country has an oil import dependency level of over 88%. India’s heavy reliance on imported crude oil has a bearing on the country’s current account deficit, foreign exchange reserves, the rupee’s exchange rate, and inflation rate, among others.

— With Iran warning vessels to not transit through the Strait of Hormuz, and even hitting a few vessels that were passing through the waterway, there is an effective halt in maritime traffic through the Strait with most trading houses, insurers, and vessels loath to get involved in the prevailing extremely high-risk environment.

— With tankers unable to pass the Strait of Hormuz leading to an oil inventory build-up in the region, major West Asian oil producers are being forced to cut crude oil production as they are running thin on storage capacity.

— Given that India imports 1.8-2 billion barrels of crude oil a year, every $1-per-barrel increase in oil prices would bump up the country’s oil import bill by up to $2 billion on an annualised basis. According to a report by Nomura, India is among the three most vulnerable Asian economies to high oil prices in terms of import bill and current account balances, the other two being Thailand and South Korea.

— A continued freeze in pump prices are expected to blunt the inflationary impact of the oil price spurt. Petrol and diesel prices have effectively been flat since April 2022, with public sector oil retailers taking losses when global prices jump, and recouping them when they fall.

Measures India can adopt to enhance its energy security

— In order to ensure continued availability of cooking gas to crores of Indian households, the government invoked emergency powers derived from the Essential Commodities Act to direct Indian refiners to maximise LPG production and ensure that all the gas is supplied solely to domestic LPG consumers and not used to produce petrochemicals. Over 80% of India’s LPG imports come through the Strait of Hormuz.

— Natural gas supplies to some sectors in India have already been reduced in the anticipation of tighter LNG deliveries; over half of India’s LNG imports come via Hormuz. Government sources indicated that if the situation worsens, reprioritisation of sectoral gas allocation may be undertaken to ensure that the critical sectors don’t suffer for want of fuel. Some sectors can also switch to alternative fuels.

Conclusion:

— While higher oil prices are sure to create a headache for the Indian economy, the current priority is to ensure continued availability of crude oil and fuels in the country. According to sources in the government, Indian refiners are ramping up oil purchases from non-Hormuz regions, which account for 60% of the country’s oil imports.

(Source: Oil crosses $100: Amid escalating Iran war, supply security bigger priority for India than price)

Points to Ponder

In what ways do geopolitical tensions in the West Asia influence global crude oil supply and prices?

How can initiatives like ethanol blending, electric mobility, and green hydrogen reduce India’s long-term dependence on imported fossil fuels?

Related Previous Year Questions

Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India. (2022)

QUESTION 2: The growing reliance on desalination technology has made water infrastructure a strategic asset in geopolitically sensitive regions. Discuss the strategic importance of desalination plants in arid regions and their implications for regional stability and water security.

Relevance: Many countries in West Asia depend heavily on desalination plants for drinking water due to extreme water scarcity. The topic links water security, climate stress, and geopolitics, which are emerging themes in GS-3 and international affairs.

The Jazlah Water Desalination plant, which draws vast quantities of water from the Persian Gulf and makes it drinkable, in Jubail, Saudi Arabia, March 2024. (NYT)

Note: This is not a model UPSC answer. It only provides you with a thought process which you may incorporate into the answers.

Introduction:

— Desalination plants convert saltwater into drinkable water, which can also be used for irrigation and industrial use.

— Saline water contains significant concentrations of dissolved salts (ranging up to 35,000 ppm) and is otherwise unfit for human consumption. Given the scarcity of freshwater sources and a growing population, the need for additional water supplies has long been recognised. The countries of West Asia, in particular, are situated in an arid region with limited surface water sources, such as rivers and lakes.

Body:

You may incorporate some of the following points in your answer:

Strategic importance of desalination plants in arid regions

— A 2017 US Geological Survey report estimated that the aquifers, which can meet 30% of the country’s water supply needs, could be desalinated for human consumption. It could satisfy nearly 800 years of use at current rates.

— According to the International Desalination Association, over 150 countries rely on desalination to produce freshwater. A 2022 report by the French Institute of International Relations (IFRI) noted that over 21,000 desalination plants operated worldwide, with the sector growing by 6% to 12% annually.

— The most important users of desalinated water are in West Asia, at 70% of global capacity, and North Africa (Libya and Algeria), at 6% of global capacity, according to an article by the US Geological Survey. According to the IFRI report, desalination plants in the UAE supply 42% of the country’s drinking water needs. Such plants meet 90% of Kuwait’s needs, 86% of Oman’s, and 70% of Saudi Arabia’s. The report also anticipated that desalination capacity in West Asia would almost double by 2030.

Concern with the desalination technology

— Desalination plants are highly energy-intensive and run on electricity generated from liquid fuels or natural gas, generating 500 to 850 million tons of carbon dioxide emissions annually.

— The predominant desalination method generates large quantities of saltwater brine, which are typically discharged into the ocean. These can harm marine habitats and kill sea creatures such as plankton and fish larvae.

Conclusion:

— Iran has long faced a water crisis and was forced to initiate water rationing last year after its worst-ever drought in six decades. With concerns about an oil crisis and the cascading disruptions to supply chains globally, the latest strikes on the desalination plants have introduced a new avenue of conflict in the escalating war.

(Source: Why desalination plants have become the latest focal point in West Asia war)

Points to Ponder

What are the environmental and energy challenges associated with large-scale desalination technology?

How can countries ensure the protection, diversification, and sustainability of water infrastructure to strengthen regional water security?

Related Previous Year Questions

Seawater intrusion in the coastal aquifers is a major concern in India. What are the causes of seawater intrusion and the remedial measures to combat this hazard? (2025)

Industrial pollution of river water is a significant environmental issue in India. Discuss the various mitigation measures to deal with this problem and also the government’s initiatives in this regard. (2024)

Previous Mains Answer Practice

UPSC Essentials: Mains answer practice — GS 3 (Week 144)

UPSC Essentials: Mains answer practice — GS 3 (Week 143)

UPSC Essentials: Mains answer practice — GS 2 (Week 144)

UPSC Essentials: Mains answer practice — GS 2 (Week 143)

UPSC Essentials: Mains answer practice — GS 1 (Week 144)

UPSC Essentials: Mains answer practice — GS 1 (Week 143)

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