India is the fourth-largest energy consumer (2013) in the world. Oil and gas account for 37 per cent of total energy consumption. Oil consumption is estimated to reach four million barrels per day (MBPD) by FY16, expanding at a compound annual growth rate (CAGR) of 3.2 per cent during FY08-16F. By 2025, India is expected to overtake Japan to become the third-largest consumer of oil.
Domestic production accounts for more than three quarters of the country’s total gas consumption. Total gas production was 35.4 billion cubic metres (BCM) in FY14. Total crude oil production in FY14 stood at 37.9 million metric tonnes (MMT). India has a network of 9,785 km of crude pipeline with a capacity of 139.25 million metric tonnes per annum (MMTPA).
The Government of India has initiated the National Gas Hydrate Programme (NGHP), a consortium of national 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. It has also introduced policies to promote investments in the industry such as New Exploration Licensing Policy (NELP) and Coal Bed Methane (CBM).
India offers abundant skilled labour at much competitive wages compared to other countries. The University of Petroleum and Energy Studies in Dehradun, Uttarakhand, is Asia’s first and only energy university. Further, several domestic companies have reportedly found natural gas in deep waters. Taking all this into account, there is significant expansion opportunity for the sector in the coming decade.
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Source: IBEF
Disclaimer: This information has been collected through secondary research and NICCT is not responsible for any errors in the same.
