Executive Summary:
This document provides an answer to Lok Sabha Unstarred Question No. 1856 regarding domestic crude oil production, import dependency, and government steps to address these issues. It details crude oil production figures for the past five years (2020-2025), acknowledges a production decline and import increase in the financial year 2024-25, and outlines measures taken to reduce reliance on volatile global crude oil markets. The data is sourced from the Petroleum Planning Analysis Cell (PPAC) and the Directorate General of Hydrocarbons (DGH).
Key Points / Main Content:
* **Crude Oil Production (Last Five Years):**
* 2020-21: 30.5 MMT
* 2021-22: 29.7 MMT
* 2022-23: 29.2 MMT
* 2023-24: 29.4 MMT
* 2024-25: 28.7 MMT
* **Crude Oil Production and Imports (FY 2024-25):**
* Crude Oil Production declined by 2.23%.
* Crude Oil Imports increased by 3.8%.
* **Government Steps to Decrease Import Dependency:**
* Diversifying crude oil sources across different geographical regions (Middle East, Africa, North & South America).
* Promoting natural gas usage to increase its share in the economy.
* Promoting renewable and alternate fuels (ethanol, 2G ethanol, compressed bio gas, biodiesel).
* Refinery process improvements, energy efficiency, and conservation efforts.
* Ethanol Blended Petrol (EBP) Programme: Blending percentage reached 19.92% in June 2025, resulting in forex savings of Rs. 1.09 Lakh Crores from ESY 2013-14 to ESY 2023-24.
* Sustainable Alternative Towards Affordable Transportation (SATAT) initiative for promoting Compressed Bio Gas (CBG).
* **Policy Measures to Reduce Import Dependency:**
* Policy under Production Sharing Contract (PSC) regime for early monetization of Hydrocarbon discoveries, 2014.
* Discovered Small Field Policy, 2015.
* Hydrocarbon Exploration and Licensing Policy (HELP), 2016.
* Policy for Extension of PSCs, 2016 and 2017.
* Policy for early monetization of Coal Bed Methane, 2017.
* Setting up of National Data Repository, 2017.
* Approval of Unappraised areas in Sedimentary Basins under National Seismic Programme, 2017.
* Policy frameworks for extension of Production Sharing Contracts 2016 & 2017.
* Policy to Promote/Incentivize Enhanced Recovery Methods of Oil/Gas 2018.
* Policy Framework for exploration and exploitation of Unconventional Hydrocarbons under Existing Production Sharing Contracts (PSCs), Coal Bed Methane (CBM) Contracts and Nomination Fields, 2018.
* Natural Gas Marketing Reforms, 2020.
* Lower Royalty Rates, Zero Revenue Share till Windfall Gain and no drilling commitment in Phase-I in OALP Blocks under Category II and III basins.
* Release of approximately 1 Million Sq. Km of No-Go area in offshore for exploration.
Impact Analysis:
* **Indian Oil Public Sector Undertakings (PSUs):**
* *Impact:* Required to diversify crude procurement sources to mitigate regional dependence.
* *Action Required:* Continue procuring crude from various geographical locations, including the Middle East, Africa, North America, and South America.
* **Ethanol Producers and Refineries:**
* *Impact:* Beneficiaries of policies promoting ethanol blending and refinery process improvements.
* *Action Required:* Increase ethanol production and implement refinery improvements to align with government initiatives.
* **Compressed Bio Gas (CBG) Producers:**
* *Impact:* Supported through the SATAT initiative to promote CBG as an automotive fuel.
* *Action Required:* Participate in the SATAT initiative to increase CBG production and availability.
* **Exploration and Production Companies:**
* *Impact:* Influenced by various policies related to hydrocarbon exploration, licensing, and production.
* *Action Required:* Adhere to and leverage the policies and frameworks outlined in the document, including HELP, PSC extensions, and unconventional hydrocarbon exploration policies.
Key Entities Referenced
Dr. Shashi Tharoor: Member of Parliament (Lok Sabha) who raised the unstarred question.
Ministry of Petroleum and Natural Gas: The Indian government ministry responsible for crude oil production and related matters.
Suresh Gopi: Minister of State in the Ministry of Petroleum and Natural Gas.
Petroleum Planning Analysis Cell (PPAC): An organization providing data and analysis related to the petroleum and natural gas sector in India.
Directorate General of Hydrocarbons (DGH): The regulatory body in India for upstream oil and gas activities.
Ethanol Blended Petrol (EBP) Programme: A Government program promoting the blending of ethanol with petrol to reduce import dependency.
Sustainable Alternative Towards Affordable Transportation (SATAT) initiative: An initiative launched to promote the use of Compressed Bio Gas (CBG) as an automotive fuel.
Hydrocarbon Exploration and Licensing Policy (HELP), 2016: A policy by the government of India to govern the exploration and production of hydrocarbons.
LOK SABHA
UNSTARRED QUESTION NO.1856
TO BE ANSWERED ON 31ST JULY, 2025
Domestic Crude Oil Production
1856. Dr. Shashi Tharoor:
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) the details of crude oil production during the last five years;
(b) whether it is true that the domestic crude oil production declined by approximately 2.9
percent during the Financial Year 2024-25 and saw a corresponding increase in
imported crude oil by a significant 6.4% and if so, the details thereof;
(c) whether the Government is taking any steps to decrease dependency on volatile global
markets for the import of crude oil; and
(d) if so, the details thereof and if not, the reasons therefor?
ANSWER
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ालय म(cid:336) रा(cid:475)मं(cid:361)ी
((cid:373)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI SURESH GOPI)
(a): Crude Oil production for the last five years is as below:
2020-21 2021-22 2022-23 2023-24 2024-25
Crude Oil (MMT) 30.5 29.7 29.2 29.4 28.7
Source: Petroleum Planning & Analysis Cell (PPAC), Directorate General of Hydrocarbons
(DGH)
(b): Crude Oil Production has declined by 2.23% and Crude Oil imports have seen an
increase by 3.8% in the last financial year 2024-25.
(c) & (d): To ensure security of crude supplies and to mitigate the risk of dependence on
crude oil from a single region, Indian Oil Public Sector Undertakings (PSUs) have diversified
their crude basket and are procuring crude from countries located at various geographical
locations viz. Middle East, Africa, North America, South America etc.Government has taken various steps to reduce import dependency which inter alia include
demand substitution by promoting usage of natural gas as fuel/feedstock across the country
towards increasing the share of natural gas in economy and moving towards gas-based
economy, promotion of renewable and alternate fuels like ethanol, second generation ethanol,
compressed bio gas and biodiesel, refinery process improvements, promoting energy
efficiency and conservation, etc. The Government has been promoting blending of ethanol in
petrol under the Ethanol Blended Petrol (EBP) Programme. Blending percentage has reached
approximately 19.92% during the month of June 2025. It has resulted in approximately forex
savings of Rs. 1.09 Lakh Crores from ESY 2013-14 to ESY 2023-24. For promoting the use
of Compressed Bio Gas (CBG) as automotive fuel, Sustainable Alternative Towards
Affordable Transportation (SATAT) initiative has also been launched.
Further, Government has taken the following measures to reduce the dependency on imported
crude oil:
a) Policy under Production Sharing Contract (PSC) regime for early monetization of
Hydrocarbon discoveries, 2014;
b) Discovered Small Field Policy, 2015;
c) Hydrocarbon Exploration and Licensing Policy (HELP), 2016
d) Policy for Extension of PSCs, 2016 and 2017;
e) Policy for early monetization of Coal Bed Methane, 2017;
f) Setting up of National Data Repository, 2017;
g) Approval of Un-appraised areas in Sedimentary Basins under National Seismic
Programme, 2017;
h) Policy frameworks for extension of Production Sharing Contracts 2016 &2017;
i) Policy to Promote/Incentivize Enhanced Recovery Methods of Oil/Gas 2018;
j) Policy Framework for exploration and exploitation of Unconventional
Hydrocarbons under Existing Production Sharing Contracts (PSCs), Coal Bed
Methane (CBM) Contracts and Nomination Fields, 2018;
k) Natural Gas Marketing Reforms, 2020;
l) Lower Royalty Rates, Zero Revenue Share (till Windfall Gain) and no drilling
commitment in Phase-I in OALP Blocks under Category II and III basins to attract
bidders;
m) Release of about 1 Million Sq. Km. (SKM) “No-Go” area in offshore which were
earlier blocked for exploration for decades.
*****