DOMINANCE OF BLACK GOLD IN ENERGY SECTOR

 FOSSIL FUEL

Fossil fuels  mainly comprising of Coal,Petroleum(black liquid gold), and natural gas contributed  85-93% of global energy production during the period 1950-2005.Traditionally coal was the dominant fuel in mid 20th century  providng nearly half of global energy. However by 1961 petrol overtook  the position as the major source  of energy that  exceeded 50% share of global energy in 1973.Natural gas share also more than doubled from 10%  in 1950  to 24.2% in 2019.It has been observed that by 2019 fossil fuel accounted above 81% of global energy production and it continue to remain above 81% of energy goods consumed.In specific sectors fossil fuel  utilisation remain robust. 

The appearence of Petroleum or crude oil, is a blackish  yellow liquid chemical mixture found in geographical formations consisting of mainly hydrocarbons .This  fossil fuel is evolved over millions of  years from decay of organic materials like algae and planktons. The term petroleum refers to both naturally occurring unprocessed crude oil and petroleum products including refined crude oil. Petroleum products include fuels  like gasoline (petrol),diesel,jet fuel,,kerosene, diesel paraffin wax,bitumen and lubricants.The petroleum industry got originated and developed from Drake Well in USA in 1859 and in Digboi well in India in 1867.The industry got globalized through advanced deep water drilling, hydraulic fracturing and extensive refining networks.Global distribution petroleum is largely concentrated in the Middle East region accounting for more than half  of proven reserves .Major petroleum countries like USA, Russia and Saudi Arabia  lead global production and USA alone contribute 22% of share followed by Saudi Arabia and Russia. Middle East account for more than half of world's proven reserves of petroleum products with main producing countries of Saudi Arabia, Iraq,Iran ,UAE and Kuwait. In North America USA is the main producer  followed by Canada.  In Russia and Eurasia Russia is main producer with significant reserves  in Western Siberia and Volga- Ural region.While in South America Venezuela holds largest reserves , and in Africa oil reserves are spread across Lbya,Nigeria,Algeria and Angola.

US MILITARY BASES IN MIDDLE EAST 

 Origins of US military presence in Middle East dates back to World War ll when US and allies relied on the regions oil field and strategic routes. Further unprecedented oil price hike of 1973 by OPEC  countries resulted in heavy inflowd of  petro dollars.Accordingly these countries commenced huge and rapid infrastructural and other development activities that inturn triggered massive Inflow of immigrants  largely from Asian regiom including India . Not only these transactions were mainlly made in US dollars but also profits were largely invested in US firms, financial markets. and US economy. Decline of cold war and US commitment to  provide thousands of soldiers to Saudi Arabia and other allies to protect aggression following Iraqi  invasion of Kuwait In 1991. All these factors were jointly and severallt responsible for establishment of US military bases in the Middle East.as a protective measure.Key bases established include Al Udeid Air base Qatar established in 1996 to serve as forward US Central Command which is the largest US Military  base in the Region. Camp Arifjan in Kuwait was constructed in 1999 to provide logistics and Command hub in the region. On the otherhand Prince Sultan Airbase in Saudi Arabia was reopened in 2019 after Iraq war.In Manama Bahrain the US Navy's  Fifth Fleet support provides secured maritime routes in the Gulf. 

DOMESTIC SUPPLY OF ENERGY 

Domestically ,Petroleum in India is distributed across tertiary sedimentary rock formations in the western offshore region  mainly Assam,Gujarat and Rajasthan. However Mumbai High located off the coast of Maharashtra is the largest producer in India,Assam's Digboi is the oldest field of the country,  as against Ankleswar,Kambhat,Kalol and Sanand in Gujarat. In Rajasthan major offshore producers are Mangala, Bhagyam and Aiswarya.Eastern offshore regions include Krishna, Godavari, and Cauvery basins which are significant for both onshore an offshore oil production .and distribution. Major Indian refineries operating  are Digboi Gauhati,Bongaigaon Assam .Since 1970s periodical supply shocks in petroleum products either due to deiiberate cartelised price hike or impact .. of frequent geopolitical tensions including the current Israel US Iran war has indiscriminately impacted economies like India which get 90% LPG supply and above  half of oil through strait of Hormuz. The world is also experiencing supply shocks of essentials like fertilizers, critical metals and materials like helium. It may be observed that the Latest technological innovation inoil sector comprise of Enhanced Oil Recovery (EOR),AI driven digitalisation and strategic shift towards sustainable energy solutions like  Green Hydrogen and Bio refineries. Globally India ranks 2nd in ethanol blending after Brazil and 4th in LNG terminal capacity assigning  the role of a  major energy supplier.

ALTERNATIVES TO FOSSIL FUEL 

India is not only the world's third largest consumer of electricity but also world's 4th largest renewable energy producer with 48.83 % of energy capacity installed in 2025.Electric Vehicle adoption saw  year  wise 50% growth in the country since 2023.Use of bio fuel,  Green Energy etc  has been increasing quite significantly. India's green energy strategy focus on achieving 50% cumulative electric power capacity from non fossil sources.Estimates showed that non fossilfuel sources accountfor 50% of the  nation's installed electric capacity as on June2025..  India has reached historic milestone of 50% of non fossil  fuel generated power in June 2025.Solar energy is the largest contributor with an installed capacity of 13285 GW and 3rd position in global ranking.Wind energy also showed robust growth reaching 54 GW in November 2025, with 4th global ranking.Nation's objective is to reach 60% non fossil fuel target  by 2030.During COP 30 Conference in November 2025 India has successfully secured commendable outcomes on  climate finance,  Global Goal on Adaptation, technology and trade and as a Leader of Basic and Like Minded Developing Countries (LMDC) groups.It is to be noted here that Niti Aayog has recently released 3 key decarbonisation road maps for cement, aluminum and MSME sectors to support India's goal of achieving net zero emissions  by 2070.Harnessing Green Hydrogen is critical for deep decarbonisation in sectors like steel and refining. The  four principles for India's clean energy and economy prescribed by NITI Aayog were 1.Invest in least cost energy solutions 2.Support to resilient and secure energy systems .3.Prioritize efficiency and  competitiveness. 4.Promote social and environmental equity. 

CONCLUDING OBSERVATIONS 

Fossil fuel i (oil, gas,and coal) make 82% of global energy mix as per 2023 estimates. Petroleum remained as the most dominant energy source  globally serving about 39% of primary energy mix and over 90% of global transportation energy. It may be noted here that oil's superior energy content by weight and volume makes it  very difficult to substitute  because of not only high energy density but also low production cost and ease for transportation. In other words petroleum being the liquid black gold still continues to maintain  its dominance in the global energy sector and unfortunately it's availability is constrained by recent geo political conflicts and consequent developments. In the prevailing geopolitical scenario heavy dependence on fossil fuel/ floating black fuel are ripping economic security and sovereignty of many nations including India. The US Isreal- Iran war  disproportionately affected India which used to get nearly 60% of crude from west Asia region. The closure and strategic control of Straits of Hormuz by Iran are  also making constraints to operate refineries in India, Middle East conflict is likely to unleash higher energy and commodity prices and supply chain disruptions. Higher prices and uncertainty are likely to squeeze  further  household consumption, saving and investment. Not only GDP growth is likely to slow down but also the external sector-exchange rate,trade deficit, current account deficit, FDI  and inward remittances are likely to impact adversely.In short the dominance of black liquid gold in global energy and global poliics that emerged since 1970s which  led to the  so called " petrodollar system " more or less  still continues  further Impacted by geopolitical tensions and conflicts across the globe in general and Middle East in particular.