In 2014, India was the fourth-largest energy consumer in the world with oil and gas accounting for 37 per cent of its total energy consumption. Annual consumption stood at 3.85 million barrels per day (MBPD) of oil and 50.6 billion cubic meters (bcm) of Liquefied Natural Gas (LNG). By FY 2016, India’s energy consumption is estimated to reach 4.0 MBPD of oil and 119.05 bcm of LNG.
India has proven oil reserves of 5.7 billion barrels, and gas reserves of 1.4 trillion cubic meters, yet given the low production base, the country remains a net importer of energy. In 2014, imports accounted for more than 80 per cent of the country’s total oil demand and 25 per cent of the total gas demand.
During FY15, total crude oil and gas production was 274.58 million barrels and 33.66 bcm respectively. At the end of 2014, India remained the second largest oil refiner in Asia with a refining capacity of 222.4 million metric tonne per annum (MMTPA), which is expected to grow to 310 MMTPA by 2017. Indian companies are expanding into new geographies and are also diversifying into alternate energies.
Several initiatives have been taken by the Government of India including the launch of National Gas Hydrate Programme (NGHP), a consortium of national exploration and production (E&P) companies and research institutions, to map gas hydrates for use as an alternate source of energy. It has allowed 100 per cent foreign direct investment (FDI) in E&P projects/companies and 49 per cent in refining under the automatic route. The sector attracted FDI worth US$ 6.6 billion between FY 2000–15.
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