In 2016, India became 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 4.00 million barrels per day (MBPD) of oil and 49 billion cubic meters (bcm) of gas. By 2035, India’s energy demand is expected to double to 1,516 Mtoe by 2035 from 723.9 Mtoe in 2016. According to the International Energy Agency (IEA), India is expected to account for almost one-third of the global growth in energy demand by 2040.
India has proven oil reserves of 600 million metric tonnes (MMT), and gas reserves of 1.2 trillion cubic meters. In 2016-17, India’s production of crude oil and natural gas stood at 0.72 mbpd and 31 bcm respectively, yet given the low production base, the country remains a net importer of energy. Production of crude oil and natural gas during April-December 2017 reached 0.54 mbpd and 24 bcm, respectively.
India has a flourishing crude oil refining industry with an annual capacity of 247.566 MMT, as of 2017. In 2017, India’s public and private sector refineries processed 157.8 MMT and 91.622 MMT of crude oil.
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.
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