India Boosts Domestic Oil And Gas Production To Tackle Rising Energy Demand

India is boosting domestic oil and gas production through key policies and a Rs 7,500 crore investment in seismic data acquisition.

New Delhi:Minister of State for Petroleum and Natural Gas, Suresh Gopi, informed the Lok Sabha in a written reply today about India’s growing energy consumption and efforts to reduce reliance on imports. According to the Energy Institute Statistical Review of World Energy 2024, India has become the world’s third-largest energy consumer, driven by industrialisation, urbanisation, and economic growth.

India’s energy demand continues to grow due to rising transportation needs, infrastructure development, and improved living standards. Currently, only 13% of crude oil and 53% of natural gas are domestically produced. Crude oil production in 2023-24 reached 29.36 million metric tons (MMT), with provisional figures for 2024-25 standing at 14.4 MMT.

The International Energy Agency (IEA) predicts that by 2030, India’s oil demand will rise to 6.6 million barrels per day (mb/d), while petrol consumption is expected to touch 1.0 mb/d.

Government Policies to Boost Energy Production

To address growing energy needs and enhance domestic production, the government has introduced several key initiatives:

• Hydrocarbon Exploration and Licensing Policy (HELP), 2016: Simplifies regulations to encourage exploration.

• Discovered Small Field Policy, 2015: Monetizes smaller fields to increase production.

• National Data Repository, 2017: Provides critical geological data to attract bidders.

• Natural Gas Marketing Reforms, 2020: Promotes a transparent and competitive gas market.

• Enhanced Recovery Methods Policy, 2018: Supports advanced techniques for boosting output.

• Unlocking Offshore ‘No-Go’ Areas: Opens 1 million sq. km of offshore areas for exploration.

In addition, the government is investing Rs 7,500 crore in seismic data acquisition and drilling of stratigraphic wells. Plans include acquiring 50,000 line kilometres (LKM) of 2D seismic data in onshore and offshore regions to make high, Gopi said.