In 2017, India retained its spot as thethird-largest energy consumer^ in the world with oil and gas accounting for 37 per cent of its total energy consumption. Annual oil consumption stood at 4.69 million barrels per day (MBPD) and 54.20 billion cubic meters (bcm) of gas. By 2035, India’s energy demand is expected to double to 1,516 Mtoe by 2035 from 753.7Mtoe in 2017. 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. Production of crude oil and natural gas during 2017-18 reached 0.64 mbpd and 31.63 bcm, respectively. Production of crude oil reached 0.60 mbpd during April 2018-February 2019. Natural gas production during April 2018-January 2019 stood at 29.32 bcm.
India has a flourishing crude oil refining industry with an annual capacity of 249.40 MMT, as of Mar 1, 2019.
Several initiatives have been taken by the Government of India including the launch of Open Acreage Licensing Policy (OALP) and Coal Bed Methane (CBM) policy. 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. FDI inflows in India’s petroleum and natural gas sector stood at US$ 7,003.67 million during April 2000–December 2018. The government is planning to invest US$ 2.86 billion in the upstream oil and gas production to double the natural gas production to 60 bcm and drill more than 120 exploration wells by 2022
Note: MMT – Million Metric Tonnes, ^As per BP Statistical Review 2018, bcm – billion cubic metre