Indian oil and gas (O&G) sector marked its emergence way back in the late 19th century, when the oil was first struck at Digboi in Assam in 1889. Since then, the sector has not seen back and has emerged as one of the core sectors for the country's economy.
India is working towards self-reliance in O&G segment and has immense potential to achieve the same, as about 80 per cent of the country's sedimentary area is yet to be explored. Recent large-scale oil and gas discoveries in the Krishna Godavari and Rajasthan basins have further consolidated India's confidence to achieve the targets.
The country's exploration and production sector is majorly dominated by public sector corporations wherein Oil and Natural Gas Corporation (ONGC) accounts for the highest market share.
India's shale gas reserves are at about 290 trillion cubic feet (TCF), of which 63 TCF could be recovered, according to a study by US Energy International Agency. Shale gas is natural gas formed from being trapped within shale formations.
Natural gas sector constitutes about 9.8 per cent of primary energy consumption which is projected to grow up to 20 per cent by 2025 as per Indian Hydrocarbon vision. About 65 per cent of natural gas consumption is accounted by power and fertiliser sectors. Petroleum and Natural Gas Regulatory Board chairman S. Krishnan stresses on the need to evolve a strategy to meet significantly higher share of energy needs from natural gas and take its contribution in the country's energy basket from 9.8 per cent to 25 per cent in the medium term.