Read the given passage carefully and answer the following questions.

Crude petroleum consists of hydrocarbons of liquid and gaseous states varying in chemical composition, colour and specific gravity. It is an essential source of energy for all internal combustion engines in automobiles, railways and aircraft. Its numerous by-products are processed in petrochemical industries, such as fertiliser, synthetic rubber, synthetic fibre, medicines, vaseline, lubricants, wax, soap and cosmetics.

Crude petroleum occurs in sedimentary rocks of the tertiary period. Oil exploration and production was systematically taken up after the Oil and Natural Gas Commission was set up in 1956. Till then, Digboi in Assam was the only oil producing region, but the scenario changed after 1956. In recent years, new oil deposits have been found at the extreme western and eastern parts of the country. In Assam, Digboi, Naharkatiya and Moran are important oil producing areas. The major oilfields of Gujarat are Ankaleshwar, Kalol, Mehsana, Nawagam, Kosamba and Lunej. Mumbai High, which lies 160 km off Mumbai, was discovered in 1973 and production commenced in 1976. Oil and natural gas have been found in exploratory wells in the Krishna-Godavari and Kaveri basin on the East Coast.

Oil extracted from the wells is crude oil and contains many impurities. It cannot be used directly. It needs to be refined. There are two types of refineries in India: (a) field-based and (b) market-based. Digboi is an example of field based and Barauni is an example of market based refinery.

In the following what makes petroleum an important resource?

It is widely used as an essential source of energy and also used as an Industrial raw material.

The correct answer is Option (3) → It is widely used as an essential source of energy and also used as an Industrial raw material.

The passage highlights that:

• Petroleum is an essential source of energy for automobiles, railways, and aircraft.

• Its numerous by-products (fertiliser, synthetic rubber, fibre, medicines, vaseline, lubricants, wax, soap, cosmetics) are vital raw materials for industries.

Therefore, what makes petroleum truly important is its dual role as a major energy source and an industrial raw material.