Oil accounts for 31 per cent of India’s total energy consumption and there is unlikely to be any significant scaling down of dependence on these fuels in the next five to ten years.
India will account for 10.8 per cent of Asia/Pacific regional oil demand by 2010, while providing 10.2 per cent of supply, as suggested by Business Monitor International in the ‘India Oil and Gas Report’. Currently, of the six core industries identified in India, the oil and gas sector has propelled the growth of Indian economy most and the Government is looking for more investors in the sector. India is currently world’s fifth biggest energy consumer and the need is continuously growing, according to KPMG’s ‘Oil and Natural Gas Overview 2010’,
To keep up to the rising demand the Government of India has initiated policies that have helped investors in the sector and also facilitated exploration and production of oil and gas in the country.
And even though the Mumbai oil fields are still not exhausted, the Government realised the need to explore more areas and introduced New Exploration Licensing Policy (NELP) to encourage the private sector to invest in exploration of oil. NELP was introduced in March 1997. Currently, about 58 per cent of the prospective Indian sedimentary basins have been explored and till the ninth round of NELP, there were 34 oil and gas blocks on offer. India naturally has about 138 billion barrels of oil and oil equivalent gas and bulk of this has not been found yet.
India will account for 12.59 per cent of Asia Pacific’s regional oil demand by 2014, according to the latest ‘India Oil & Gas Report’.
According to the provisional production data released by the Ministry of Petroleum and Natural Gas, dated January 2011
India will account for 12.59 per cent of Asia Pacific’s regional oil demand by 2014, while providing 10.13 per cent of supply, according to the Business Monitor International’s ‘India Oil and Gas Report Q4 2010’. The regional oil production was estimated at 8.82mn barrels per day (b/d) in 2010 compared to 8.35mn b/d in 2001.
The projected production for crude oil in 2010-11 is 37.96 (MMT), which is about 12.67 per cent higher than the actual crude oil production of 33.69 MMT during 2009-10. The projected production for natural gas (including coal bed methane or CBM) for 2010-11 is 53.59 billion cubic metre (BCM), 12.8 per cent higher than the actual production of 47.51 BCM in 2009-10.
Oil & Natural Gas Corporation (ONGC) produced maximum domestic oil in 2010, averaging to 830,000 b/d highlighted the ‘India Oil and Gas Report Q4 2010’. The report predicts that with such effort, the production of oil in India will be as high as 950,000 b/d by 2012.
The consumption of petroleum products during 2009-10 were 138.196 MMT (including sales through private imports) an increase of 3.60 per cent over sales of 133.4 MMT during 2008-09, according to the Ministry of Petroleum.
India’s current petroleum products consumption rate from April 2010 to February 2011 was 128.827 million tonnes (MT), as per the estimates of the Planning and Analysis Cell (PPAC).
Diesel consumption in the country grew at 4 per cent annual rate to 4.96 MT in October 2010 while petrol sales were up 7.3 per cent at 1.21 MT. Jet fuel consumption was up 10 per cent at 434,100 tonnes. Overall fuel sales in the country were up one per cent at 11.647 MT in October 2010 against 11.538 MT in the same month in the previous year.
Gas consumption is set to rise from an estimated 63 BCM in 2010 to 110 BCM, with domestic supply up from around 45 BCM in 2010 to at least 70 BCM by 2014.
The gas transmission domain was dominated by Gas Authority of India Ltd (GAIL) till, in April 2009, the first natural gas production started from Krishna Godavari (KG) basin deepwater block by Reliance Gas Transportation Infrastructure Ltd. Currently, the natural gas production from the KG D6 block is about 60 million standard cubic metres per day (MMSCMD). The natural gas production from the block is expected to be in the range of 80-89 MMSCMD till March 2012.
Gas production is expected to rise from an estimated 45BCM in 2010 to a possible 95 BCM by 2019.
Natural gas is expected to play a key role in India’s energy mix by 2025. The proportion of natural gas in the total energy mix has increased to 10 per cent in 2009 from 4 per cent in 1999. The same is expected to increase to 20 per cent in 2025.