The oil and gas industry has been instrumental in fuelling the rapid growth of the Indian economy. India has total reserves of 775 million metric tonnes (MMT) of crude oil and 1074 billion cubic metres (BCM) of natural gas as on April 1, 2009, according to the basic statistics released by the Ministry of Petroleum and Natural Gas. Petroleum exports during 2008-09 were US$ 26.2 billion.
In the eighth round of the NELP (NELP-VIII), 1.62 sq km area will be covered comprising 70 blocks. Out of 70 blocks, 36 have been awarded under NELP-VIII, according to the Economic Survey 2009-10.
According to Mr Murli Deora, Union Minister of Petroleum,, the ninth round of New Exploration Licensing Policy (NELP) is likely to be launched in the third quarter of 2010.
Moreover, the government is planning its first ever offer of shale gas exploration in 2012. According to Mr Deora, "Shale gas (gas locked in sedimentary rocks) is an emerging area. It has become an important source of energy in a few countries who have been able to commercially exploit this resource."
By the end of the Eleventh Plan, the refinery capacity is expected to reach 240.96 million metric tonnes per annum (MMTPA).
According to the provisional data released by the Ministry of Petroleum & Natural Gas, dated June 28, 2010,
The sales/consumption of petroleum products during 2008-09 were 133.4 MMT (including sales through private imports), an increase of 3.45 per cent over sales of 128.95 MMT during 2007-08, according to the Ministry of Petroleum.
The sale of oil products in the country rose 3.8 per cent in April 2010 to 12.13 million tonne year-on-year.
As per the Ministry of Petroleum, demand for oil and gas is likely to increase from 186.54 million tonnes of oil equivalent (mmtoe) in 2009-10 to 233.58 mmtoe in 2011-12.
India's natural gas demand is expected to nearly double to 320 million metric standard cubic metre per day (mmscmd) by 2015, according to a report released by global consultancy firm, McKinsey at the VI Asia Gas Partnership Summit.
According to the report, the current demand of 166 mmscmd—made up of nearly 132 mmscmd supplies from domestic fields and the rest from imported liquefied natural gas (LNG)—is likely to rise to at least a minimum of 230 mmscmd and a maximum of 320 mmscmd by 2015.
In January 2010, Gas Authority of India Ltd (GAIL) said that gas availability in India is expected to grow at 23 per cent compounded annual growth rate (CAGR) to 312 mscmd by 2013-14, buoyed by trebling of domestic production to 254 mscmd and doubling of regasified liquefied natural gas imports to 58 mscmd.
To capture the opportunity presented by the impending gas surge in India, GAIL is investing significantly in its pipeline network. Over the next three years, it will invest US$ 660.7 million-US$ 770.8 million, expanding its transmission capacity from the current 150 mscmd to 300 mscmd.
Moreover, GAIL which has signed a Memorandum of Understanding (MoU) with the Karnataka government will spend US$ 423.6 million this year to lay the 800-km pipeline to transport gas from the LNG terminal in Dabhol to Bidadi near Bangalore. GAIL expects the project to be completed by March 2012.
State-owned Oil and Natural Gas Corp (ONGC) has added 83 million tonnes (MT) of oil and gas reserves in 2009-10, the highest in two decades.