People usually gets confuse between black gold and black coloured gold. Black gold is a term given to some essential metal but people thinks that black gold is black coloured gold. In this article, you will get to know All about Black Gold, and where black gold is found in India.
Contents
What is Black Gold?
Black Gold is a term used to describe Crude Oil. Crude Oil is black and to show the power, wealth of crude oil. Crude Oil is precious and dark in colour that is why it is called Black Gold, especially in India.
On the other hand, Black coloured gold are also there. People like their gold to have different colours and that is why this colour exists.
Also in India, people usually terms “black” for products of which tax is not given. That is why, you may have heard black market.
Black Gold contains hydrocarbons with various molecular weights which are present naturally in it.
Reasons for crude oil is called ‘black gold’
- It is expensive to extract.
- It has more demand, more demand means more value.
- Crude Oil is Black in colour and is expensive therefore it is informally called as ‘Black Gold’.
Also Read:
- What is Gold Karat? 3 ways how karat determines Gold Rate
- White Gold Rate Price in India | White Gold Ring & Chain Designs
- All About Black Gold | 3 Places Where does it is found in India
Difference between Black Gold and Yellow Gold (Real)
There is a really big difference between Gold and Black Gold. Black gold is used to refer crude oil and gold is real yellow gold.
Gold is extracted from rocks found from gold mines. These rocks also contains other metals in it. So it becomes important to remove other metals from the rock so that pure gold can be extracted from it.
There are many process of gold extraction drilling the rocks and blasting are the famous techniques to extract gold.
Where does black gold found in India?
In India, Crude oil also known as black gold is found in Assam, Gujarat, Mumbai and in the basins of Godavari and Krishna.
The first oil deposits was found in Digboi in Assam.
Top 3 Crude Oil / Black Gold reserves regions in India
| Rank | Region in India | Percentage of Share |
|---|---|---|
| 1 | Western Offshore(Includes Bombay High offshore and Rajasthan) | 39.60% |
| 2 | Assam | 26.48% |
| 3 | Gujarat | 19.63% |
What is Black Gold called in India?
Crude Oil is refer as Black Gold in India. This name shows the importance and value of oil in India that it is compared with Gold.
India is a developing country and has energy needs much more than other countries. The electricity generation target for the year 2023-24 in India has been fixed as 1750 Billion Unit (BU).
To fulfil the Energy need India uses various energy sources such as coal, Biomass and Crude Oil. Crude oil being expensive therefore people refer crude oil as black gold. Crude oil fulfils approximately 30% of energy requirement in India.
Importance of Crude oil in India:
- Energy consumption : Crude Oil is a good and major source of energy in India. As India is a developing country industries and population is continuously increasing and energy needs grows, that is why crude oil is important for India. other than crude oil India uses Coal and Biomass. Transportation, Residential usage, Industry these sectors are powered by using Crude Oil.
- Financial Impact : Crude Oil has a great impact in India. India majorly imports crude oil, which makes India depend on other country and international inflation. If oil prices gets higher than everything which depends on oil their price will also increased. According to the data from PPAC (Petroleum Planning and Analysis Cell) 84% of Oil in India is imported from other countries. Basically Black Gold has higher impact on country’s economy.
- Energy Security : By diversifying energy production India is not dependent on only one source. In May 2022, India faced a huge coal shortage but eventually it got covered due to the diversification.
Challenges of using Black Gold in India
After knowing the importance of Black gold one should also know the challenges or opportunities of it.
- Geo Politics : Prices of Crude Oil or Black gold depends on global rates. If geo politics is not supporting for India then Oil prices can touch sky, which can result in inflation of country. In order to get oil in good rate country should maintain good relation with other countries so that trade can happen with less rate.
- Overdependence on Crude Oil : As per some report India’s oil demand is likely to increase by 50% in 2030. India should cut down some usage of oil and should try to use renewable energy source such as solar energy, wind energy and hydroelectric power.
Top 10 Countries India Imports Black Gold / Crude Oil:
| Rank | Country | Import Money in $ |
|---|---|---|
| 1 | Iraq | $25.1 billion |
| 2 | Saudi Arabia | $17.9 billion |
| 3 | United Arab Emirates | $11.7 billion |
| 4 | United States | $10.4 billion |
| 5 | Nigeria | $8.2 billion |
| 6 | Kuwait | $6.8 billion |
| 7 | Mexico | $3.3 billion |
| 8 | Oman | $2.8 billion |
| 9 | Russia | $2.3 billion |
| 10 | Brazil | $2.02 billion |
Note : This data is of 2021
Conclusion
Black Gold is more rememberable and catchy term rather the crude oil. Name also shows how much it is important and valuable that it is compared with gold. In this article introduction, difference between actual gold, importance, where it founds, and challenges of Black gold is described. Read our other Blogs. If you want to get updated gold rate of Pune and other cities in India then click here.
What is black gold?
Black Gold is a term used to describe Crude Oil. Crude Oil is black and to show the power, wealth of crude oil. Crude Oil is precious and dark in colour that is why it is called Black Gold, especially in India.
Is there natural black gold?
Yes, naturally gold is extracted from rocks which are black in colour, after polishing we get that yellowish golden colour.
Is Black Gold more expensive than gold?
Yes it is more expensive, as it contains more substances than gold.
What karat is black gold?
10 karat, 14 karat or 18 karat gold. Below 14 means that the metal is less pure than 50 percent.
Why is Petroleum called Black Gold?
Petroleum is called Black Gold because it shows the importance and value of oil in India with is equivalent to Gold.
Black Gold is Known As?
Black Gold is Known as Crude Oil in India