India’s crude oil production fell by 5.2 per cent and natural gas production by 8.1 per cent in the Financial Years 2020-21.
- India produced 30,491.7 Thousand Metric Tonnes (TMT) of crude oil and 28670.6 Million Metric Standard Cubic Metres (MMSCM) of natural gas in the fiscal.
- India’s crude oil and natural gas production have been falling consistently since 2011-12.
- Covid-19 related delays are among the key reasons cited by producers behind lower production.
- Most of India’s crude oil and natural gas production comes from ageing wells that have become less productive over time.
- Some experts have suggested that producers would have to invest in extracting oil and gas using technologically intensive means from more difficult fields such as ultradeep water fields.
- Interest from foreign payers in oil and gas exploration in India had been low. One of the reasons behind less interest from private and foreign players is due to delays in the operationalisation of hydrocarbon blocks due to delays in major clearances including environmental clearances and approval by the regulator of field development plans.
- Industry players have been calling for a reduction in the cess on domestically produced crude oil to 10 per cent from the current 20 per cent.
(Source: Indian Express)
