Read the passage and answer the questions:
Crude petroleum consists of hydrocarbons of liquid and gaseous states varying in chemical composition, color 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 fertilizer, synthetic rubber, synthetic fiber, 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 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.
Petroleum is called liquid gold because:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → It is scarce in nature and has diversified uses.
Option (1) It is scarce in nature and has diversified uses. — Correct. Petroleum is referred to as liquid gold because of its scarcity and diversified uses. It runs the engines of automobiles, railways and aircraft, and its by-products give fertiliser, synthetic rubber and fibre, medicines, wax, soap and cosmetics. So much depends on a fuel found in limited quantity, and what is scarce yet needed everywhere becomes very valuable, like gold.
Option (2) Gold can be extracted after refining crude petroleum. — Incorrect. Refining only removes impurities; there is no gold in petroleum.
Option (3) It is a rare earth material. — Incorrect. Rare earths are metallic elements used in magnets and electronics; petroleum is a fuel made of hydrocarbons.
Option (4) It is received in yellow color from nature. — Incorrect. The name refers to its value, not its colour.
Note: The concept in Option (3), ‘rare earth material’, is not in NCERT (2025-26); explained here for the benefit of the students.
NCERT (2025-26): “Petroleum … 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.”
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