Securing the Energy Basket by Optimising Resource Potential has been saved
Securing the Energy Basket by Optimising Resource Potential
Oil & Gas
India has an oil & gas Reserves to Production (R/P) ratio of 17.6 years. The domestic production in 2014 was about ~900,000 barrels of oil per day (bopd) accounting for ~23 % of its current consumption of 3.8 million bopd. The wide gap is essentially met through imports which have been in excess of $100Bn in the recent years. While the decline in oil prices has helped reduce the oil & gas import bill over the past year, any future increase in prices will have an adverse impact on the Indian economy.
Increasing domestic production has been identified by MoPNG as a key focus area and they have set themselves ambitious targets of reducing oil imports by 10% by 2022 and 50% by 2030. This will require integrated energy initiatives including domestic production increase. The report talks about the approach and options available before the oil and gas industry to increase production and meet the envisaged targets over the years.
The report provides an overview of the overall demand supply position of oil and gas within the country. With India’s growing economy, the demand for energy has also increased manifolds much beyond the energy produced in the domestic market. With limited fossil fuel resources, optimization of energy consumption and optimum allocation of resources is the future of the country’s energy sector.
The report also highlights three important requirements for the above initiatives as
1. Long term clarity on policies related to licensing regime, unconventionals, marginal fields, open acreage and creation of national data repository besides other policy rectifications
2. Simplification of processes to enable greater autonomy by creating single window clearances and flexibility in field development plans
3. Technology deployment, skill development and local manufacturing