Natural Resources

Earth’s Resources• Atmosphere

– Oxygen for human beings, animals & fauna– Oxygen as part of CO2 for plants ( in turn used by humans)

• Hydrosphere– Water for drinking, washing, cooking– Agriculture & industry, water based food resources

• Lithosphere– Soil for food; stone & sand for housing; minerals – Oil, coal & gas

• Biosphere– Food for all forms of life– Biomass fuel wood for energy – Timber for industry

Types of Resources• Renewable:

– Water & biological (within certain limits linked to natural cycles. & usage)

– Forests & its produce( Ideally India’s forest cover should be 33% , but, is 12%)

– Land ( if used carefully)

– Food ( land & aquamarine) again if used wisely

– Energy• Sun• Wind• Hydro• Geothermal

• Non-Renewable:– Minerals– Oil & natural gas– Coal – Nuclear

Are we using Resources wisely?• Consumption/capita of developed countries >50 times than developing countries• Developed countries produce 75% of industrial waste and green house gases• USA with 4% of world’s population consumes 25% of world resources• India & China because of high population also overuse • Water: 31 countries already facing crisis and by 2025 will rise to 48. Dams though

increases irrigated area impacts lives & habitat. Silver line: Drip irrigation• Forest: Deforestation causing flood & drought• Minerals: Exploitation causes soil erosion, pollution, deforestation• Food: 64 of 105 developing countries still need to attain sufficiency. 18 million

people worlwide die/yr due to malnutrition• Fishery: 44% of world’s fisheries heavily exploited• Energy: As per ‘98 report, avg. American uses 24 times more energy than Indian

– Silver line: Denmark produces 15000 KW electricity from biogas

Natural Resource: Curious case of KG Basin Case Study: GoI Vs. RILIn 2002, KG basin contract was given to RIL which promised in 2004 to supply gas to NTPC for 17 years @ USD 2.4/unit. But, in 2007, RIL wanted USD 4.2/unit. RIL wants USD 14.25/unit. At that price Electricity supply shall cost Rs. 7/unit.

In 2013, Petroleum Ministry informed that the cost of production of gas in the KG D6 block, works out to be just $2.74 mbtu. RIL which were supposed to supply at least 80 mcumt/per day even at U.S. $4.20/unit(revised in 2007) , but, produced less than 25% of that quantity(deliberate?). RIL say bureaucratic system has slowed the progress.

The GoI decision to double natural gas prices to USD 8.4/unit from April 2014 ostensibly to incentivise domestic gas production. It approved an international pricing mechanism from April 2014 under the Rangarajan formula.

What cost model should be adopted to fix the price of the natural resource?On another note, The Govt. also asked Reliance Industries Ltd (RIL) to give up 81 per cent of its KG-D6 gas block, including five discoveries, as the time allocated for producing from them had expired.

(Give your views!)

Decline in Gas Production : Source: Deccan Herald

• Shocking decline of gas production in Krishna-Godavari Basin• India’s energy sector was on cloud nine when Reliance discovered huge gas reserves of

40 trillion cubic feet in block D6 of Krishna Godavari in 2002. We were equally and rightly proud when in a record time of seven years, gas started to flow and reached a high of 61 million cubic metres per day (mmcmd).

• At that time the prognosis was to reach 80 mmcmd by April 2012. The reality turned out to be different. By November 30, 2010, the gas production had started to decline. The current production is under 50 mmcmd and is likely to go down even more.

• According to Reliance, because of water ingress there has been pressure drop in the wells leading to lower production. According to them drilling more wells is not a solution. However the consultant hired by DGH has been recommending that by drilling more wells in newer areas production can be increased.

• Reliance must have realised that it will not be able to manage the complexity of the gas reservoir and sought to form a joint venture with a multinational like BP with greater expertise in deep water technology.

• The situation has been made even more complex with the interference of petroleum ministry in forcing Reliance to sell gas to the so called priority sectors like power generation, fertiliser companies, residential consumers and LPG extraction plants and cutting off supplies to steel companies, petrochemical plants and refineries.

• Steel companies have gone to the court complaining about their huge losses.

Soil & Land Degradation• Soil is the earth’s fragile skin that anchors all life on Earth.• Half of the topsoil on the planet has been lost in the last 150 years.• Increased demand for agriculture produce convert forests and

grasslands to farm fields and pastures.• Transition to agriculture from natural vegetation cannot hold onto

the soil.

Source: WWF website

Large scale erosion forming a gully system around six mt. deep. This is due to over grazing by goats and other livestock. The exposed bare earth is washed away forming the gully system. Deforestation in the Lake Bogoria area is a serious threat as it leads to a drop in the water table and therefore streams and swamps drying out. Lake Bogoria, Kenya.

Causes of soil degradation• Agriculture: Replaces natural vegetation. Topsoil is exposed and can dry out.

Microorganisms that keeps soil fertile decrease. Nutrients wash out. Soil can be blown away by the winds or washed away by rains.

• Deforestation: Without trees, erosion occurs and sweep the land into rivers. The agricultural plants( coffee, wheat etc) that often replace the trees cannot hold onto the soil, but, actually worsen soil erosion. And as land loses its fertile soil, agricultural producers move on, clear more forest and continue the cycle of soil loss.

• Overgrazing: Conversion of natural ecosystems lead to high rates of erosion and loss of topsoil and nutrients. Overgrazing can reduce ground cover, enabling erosion and compaction of the land by wind and rain. This reduces the ability for plants to grow and water to penetrate, which harms soil microbes and results in serious erosion of the land.

• Use of Agrochemicals: Pesticides and other chemicals used on crop plants have helped farmers to increase yields. Scientists have found that overuse of some of these chemicals changes soil composition, disrupts balance of microorganisms & stimulates the growth of harmful bacteria at the expense of beneficial kinds.

Source: WWF website

Effect of Soil degradation• Desertification: Droughts and arid conditions with huge economic costs for

nations where deserts are growing.• Loss of Arable Land: Arable land is any land that can be used to grow crops. Many

of the practices used in growing those crops can lead to the loss of topsoil and destruction of soil characteristics that make agriculture possible.

• Clogged and Polluted Waterways: Soil eroded from the land, along with pesticides and fertilizers applied to fields, washes into streams and rivers. This sedimentation and pollution can damage freshwater and marine habitats and the local communities that depend on them.

• Increased Flooding: Land is often transformed from a forest or other natural landscape, such as floodplains and wetlands, into a crop field or pasture. The converted land is less able to soak up water, hold soil thereby causing run off and making flooding more common.

Effect of deforestation

Salvaging the situation• Promoting Sustainable Agriculture: Agriculture gives us food, fibre, and even biofuels.

Farming is the world’s largest industry, employing a billion people who produce more than $1 trillion of food annually. WWF and other agencies works with farmers, major companies and their supply chains to promote the use and development of sustainable agriculture that preserves and restores critical habitats and improves the health of soil and water.

• Reduce Deforestation:. Parts of the landscape will need to be reshaped and altered as populations grow and change—but this can be balanced through sustainable forest management, reforestation efforts and maintaining the integrity of protected areas. Respect and empower local communities, maintain critical ecosystem services and reduce greenhouse gas emissions. Some nations are already finding success. Paraguay reduced deforestation by 85% in the years following enactment of 2004 Zero Deforestation Law.

• Preventing Desert Expansion : Create a network of protected forests to integrate conservation and development so that local people would benefit from their natural heritage.

• Alternate Food Sources: Innovate usage of fruits, gum, mushrooms and other natural forest produce to break current agri patterns

• Drip irrigation farming:• Grow unfamiliar crops: Nagli which is grown on poor soil on hill slopes pg 32.• Integrated Pest mgmt: pg 32• What can you do to help the situation?

India’s Economic Development & Resource Use• Dams : Major contributor for increase in area under irrigation

to 271 mha in ‘98 from 100 mha in ’50. – Benefits: Agriculture, industry & hydropower generation, drinking water– Problems: Alter river flow, changes nature’s flood control mechanism,

displaces people & animals (cut off their migratory routes)– Impact: 16-18 million displaced of which 40-50% tribal; 90% of Dams

cleared in ‘80s & 90s did not fulfill environmental conditions under which GOI gave clearances under EPA of 1986

• Case Studies: – Sardar Sarovar Project: World Bank’s withdrawal pg 27

– Narmada Bachao Aandolan: pg 38

– Sariska Tiger Reserve: Pg. 29

– Hydel Power in Western Ghats: pg 37

Natural resource Accounting• Natural resource accounting is an accounting

system that deals with stocks and stock changes of natural assets, comprising biota (produced or wild), subsoil assets (proved reserves), water and land with their aquatic and terrestrial ecosystems– Recorded Forest area by region ( sq. Kms)– Asset value of Forest & produce– Arrive at National & State wise account