Home India Ministry of Petroleum and Natural Gas Parliament Question: Domestic Production of Crude Oil and Na...
Date: 2026-07-23 Category: LOKSABHA_QNA State: Union Government Country: India

Parliament Question: Domestic Production of Crude Oil and Natural Gas

Issued by Ministry of Petroleum and Natural Gas · Not Applicable

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LOK SABHA UNSTARRED QUESTION NO. 894 TO BE ANSWERED ON 23rd JULY, 2026 DOMESTIC PRODUCTION OF CRUDE OIL AND NATURAL GAS 894: Shri Aashtikar Patil Nagesh Bapurao: Shri Janardan Singh Sigriwal: पेट(cid:332)ोिलयम एवं (cid:366)ाकृ ितक गैस मं(cid:361)ी Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state: (a) whether the Government has undertaken any assessment of the gap between domestic production and consumption/requirement of crude oil, petroleum and natural gas in the country and the trends in domestic production during the last five years, if so, the details thereof; (b) the details of the domestic production, consumption/requirement, import dependence, and the quantum and percentage of imports in respect of crude oil, petroleum products and natural gas during the last five years, year-wise, along with the major source countries; (c) the details of the measures taken by the Government to enhance domestic exploration and production of crude oil, petroleum and natural gas, including policy reforms, incentives and other initiatives to promote public and private sector participation, attract investment and reduce import dependence; (d) whether the Government has formulated any strategy, fixed any targets or proposes to implement any further policy measures to increase domestic production of crude oil and Liquefied Natural Gas, diversify import sources, strengthen the country's energy security and achieve self-reliance in the petroleum and natural gas sector, if so, the details thereof along with the progress made in achieving these targets; and (e) the details of the progress made during the last three years in expanding the City Gas Distribution (CGD) network, including the number of new Geographical Areas (GAs) covered and households provided with Piped Natural Gas (PNG) connections, State/Union Territory-wise? ANSWER पेट(cid:332)ोिलयम एवं (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 PETROELUM & NATURAL GAS (SHRI SURESH GOPI) (a) & (b): The Government continuously monitors domestic production and consumption of crude oil, petroleum products and natural gas and assesses the gap between domestic production and consumption/requirement and reviews the supply-demand position. Domestic oil production over the last five years has shown a slight decline in trend primarily owing to natural decline in mature and ageing oil and gas fields. However, during this period, National Oil Companies (NOCs)—namely ONGC and OIL—have consistently sustainedtheir production levels. ONGC has maintained an average oil production of approximately 19.6 MMT, while OIL has registered an increase in production from 2.94 MMT to 3.44 MMT. It is pertinent to note that the NOCs have been able to contain the annual decline rate to 2% since 2014-15, which is superior to the global average decline rate of 6% for mature fields (as per International Energy Agency). Domestic production of Natural Gas has turned around from 2021-22 onwards, largely due to new production coming in from deepwater blocks in the Krishna-Godavari (KG) Basin. During the same period, the country's consumption/requirement of petroleum products and natural gas has continued to rise on account of economic growth, rising energy demand and expanding industrial and transport use. Oil and Gas Public Sector Enterprises (PSEs) source crude oil and natural gas from diverse sources depending on their technical and commercial considerations. Currently, these PSEs import crude oil from 41 countries including new suppliers like USA, Nigeria, Angola, Canada, Columbia, Brazil and Mexico in addition to traditional suppliers in the Middle East such as Iraq, Saudi Arabia, UAE, Kuwait and Qatar. The year-wise trend in domestic production of crude oil and natural gas and the year-wise position of domestic production, consumption, import dependence and the quantum of imports of crude oil and natural gas over the last five years is given at Annexure I. (c) and (d): The Government has undertaken a series of comprehensive policy, regulatory and fiscal measures to boost domestic crude oil and natural gas production and reduce dependency on imports with the objective of strengthening the country’s energy security and reducing foreign exchange expenditure through participation by both public and private sector companies, which, inter-alia, include reforms viz. legislative changes through the Oilfields (Regulation and Development) Amendment Act, removal of No-Go restrictions in the country’s offshore areas, transition from Production Sharing Contracts (PSCs) to Revenue Sharing Contracts (RSCs), massive investment in acquisition and processing of seismic data, increase in number of exploratory wells drilled etc. During the last decade over 3.5 lakh Sq Km of exploration acreages have been awarded.A list of such initiatives is placed at Annexure II. (e): Providing Piped Natural Gas (PNG) connections and establishment of Compressed Natural Gas (CNG) Stations is part of development of City Gas Distribution (CGD) Network and the same is carried out by the entities authorized by PNGRB. The number of Geographical Areas (GAs) authorized by PNGRB under successive CGD Bidding Rounds has progressively increased from 300 (March 2024) to 307 (March 2025) and 309 (May 2026). As on 31.03.2026, the authorized CGD entities have provided 1,69,49,377 Domestic PNG connections and established 8,916 CNG Stations across the country. The details of State wise CNG stations & DPNG connections progress for last three years are enclosed as Annexure III.Annexure I ANNEXURE-I IN REPLY TO PARTS (A) TO (B) IN RESPECT OF LOK SABHA UNSTARRED QUESTION NO. 894 FOR REPLY ON 23.07.2026 REGARDING DOMESTIC PRODUCTION OF CRUDE OIL AND NATURAL GAS ASKED BY SHRI AASHTIKAR PATIL NAGESH BAPURAO AND SHRI JANARDAN SINGH SIGRIWAL. Year-wise trend in domestic production of crude oil and natural gas over the last five years: Financial Year 2021-22 2022-23 2023-24 2024-25 2025-26 Crude Oil (Million Metric Tonnes) 29.691 29.179 29.357 28.704 27.963 Natural Gas (Billion Cubic Metres) 34.024 34.450 36.438 36.109 34.776 Source: Directorate General of Hydrocarbons Year-wise position of domestic production, consumption, import dependence and the quantum of imports of crude oil and natural gas over the last five years: Crude Oil and Petroleum Products Crude Oil Domestic Crude Approx. Consumption Crude Oil Imports Financial Oil Production of Petroleum Products Import (Million Year (Million Metric (Million Metric Dependence Metric Tonnes) Tonnes) (%) Tonnes) 2021-22 29.7 201.7 85.5% 212.4 2022-23 29.2 223.0 87.4% 232.7 2023-24 29.4 234.3 87.8% 234.3 2024-25 28.7 239.2 88.3% 243.2 2025-26 28.0 241.6 88.7% 245.8 Source: Petroleum Planning & Analysis Cell Natural Gas Natural Gas Import Natural Gas Consumption Natural Gas Financial Quantity (Billion Production – Net (Billion Cubic Import Year Cubic Metres) (Billion Cubic Metres) Metres) Dependence (%) 2021-22 33.131 64.159 48.4% 31.028 2022-23 33.664 59.969 43.9% 26.304 2023-24 35.717 67.512 47.1% 31.795 2024-25 35.594 71.314 50.1% 35.72 2025-26 34.326 68.753 50.1% 34.427 Source: Petroleum Planning & Analysis CellAnnexure II ANNEXURE-II IN REPLY TO PARTS (C) TO (D) IN RESPECT OF LOK SABHA UNSTARRED QUESTION NO. 894 FOR REPLY ON 23.07.2026 REGARDING DOMESTIC PRODUCTION OF CRUDE OIL AND NATURAL GAS ASKED BY SHRI AASHTIKAR PATIL NAGESH BAPURAO AND SHRI JANARDAN SINGH SIGRIWAL. List of initiatives taken by the government to promote domestic Exploration and Production of Oil and Natural Gas: i. Policy for Relaxations, Extensions and Clarifications under Production Sharing Contract (PSC) regime, 2014 for early monetization of hydrocarbon discoveries. ii. Discovered Small Field (DSF) Policy, 2015, which provides a transparent mechanism to award discovered but undeveloped fields to expedite production. iii. Hydrocarbon Exploration and Licensing Policy (HELP), 2016, providing a uniform licensing framework and revenue sharing regime for exploration and production of hydrocarbons. iv. Policy for Extension of PSCs (2016 and 2017) to facilitate continued production from producing blocks. v. Policy for Early Monetization of Coal Bed Methane (CBM), 2017, enabling marketing and pricing freedom and addressing operational issues in CBM blocks. vi. Constitution of Committee of Eminent External Experts (CEEE) for dispute resolution through Notifications dated 28.02.2019 and 16.12.2019. Implementation of this mechanism has yielded excellent results till date, wherein in 31 cases, recommendations made by CEEE have been accepted and implemented. vii. Release of about 1 million sq. km. of previously “No-Go” offshore areas in 2022, which were earlier restricted for exploration, enabling additional acreage to be offered for exploration under the Open Acreage Licensing Policy (OALP). viii. Accelerated exploration and drilling activities by National Oil Companies (Oil and Natural gas Corporation Ltd. and Oil India Ltd.) including near-field exploration and development drilling in onshore and offshore basins. ix. Enactment of the Oilfields (Regulation and Development) Amendment Act, 2025 and notification of the Petroleum and Natural Gas Rules, 2025, which modernize the upstream regulatory framework by providing a single petroleum lease for the entire lifecycle of hydrocarbon operations, broadening the definition of mineral oils to include conventional and unconventional hydrocarbons, ensuring lease stability with extension up to the economic life of the field, and establishing clear procedures, timelines and standardized formats for approvals. The framework also provides for infrastructure sharing, lease extension, economic stabilization in case of change in law, robust adjudication and dispute resolution mechanisms, and enhanced compliance provisions. It further enables comprehensive energy projects including renewable energy, hydrogen, energy storage and carbon management within petroleum lease areas, along with environmental safeguards such as limiting gas flaring, thereby promoting efficient and sustainable development of hydrocarbon resources.x. Collaboration with international technology partners and global oil companies as technical service providers to leverage advanced exploration, drilling and reservoir management technologies. To augment domestic production from existing fields, National Oil Companies have also entered into strategic international technical collaborations. In February 2025, ONGC appointed BP Exploration (Alpha) Limited as Technical Services Provider for Mumbai High, and in May 2026 extended the engagement to the remaining Western Offshore region to support implementation of advanced interventions aimed at arresting production decline and enhancing recovery. xi. Recognising that high-quality geoscientific data is critical for reducing exploration risk, the Government has established the National Data Repository (NDR), which presently hosts approximately 1.33-million-line kilometres of 2D seismic data, 0.47 million square kilometres of 3D seismic data, and information relating to more than 24,500 wells. In addition, Government-funded seismic acquisition programmes are being implemented under Mission Anveshan, including acquisition of an additional 20,000 line kilometres of onland 2D seismic data, while acquisition of 30,000 line kilometres of offshore 2D seismic data beyond the Exclusive Economic Zone has already been completed. xii. Further, the Government, through its National Oil Companies, has initiated a Stratigraphic Wells Programme in collaboration with international partners, including bp and TotalEnergies, involving four stratigraphic wells in the Andaman, Saurashtra, Mahanadi and Bengal basins. The stratigraphic well in the Andaman Basin has already been drilled to a depth of approximately 5,400 metres. This will assist in geological understanding of frontier Category II and Category III Basins. xiii. Hydrocarbon Resource Assessment Study (HRAS):This is a periodic, basin-wide exercise in which the hydrocarbon prospectivity of Indian sedimentary basins is reassessed using updated geological, geophysical and well data, so as to re-estimate in- place and recoverable hydrocarbon resources. Such assessment is undertaken by the Government from time to time, with the last one having been completed in 2017.Annexure III ANNEXURE-III IN REPLY TO PART (E) IN RESPECT OF LOK SABHA UNSTARRED QUESTION NO. 894 FOR REPLY ON 23.07.2026 REGARDING DOMESTIC PRODUCTION OF CRUDE OIL AND NATURAL GAS ASKED BY SHRI AASHTIKAR PATIL NAGESH BAPURAO AND SHRI JANARDAN SINGH SIGRIWAL. State Wise Progress in last three (03) years S. PNG Domestic Connections CNG Stations State / UT No. Mar-24 Mar-25 Mar-26 Mar-24 Mar-25 Mar-26 1 Andhra Pradesh 2,75,517 2,85,425 2,96,440 203 233 242 2 Arunachal Pradesh 0 0 0 0 0 3 Assam 58,474 67,830 74,316 22 35 45 4 Bihar 1,62,171 2,51,955 3,20,806 151 219 250 5 Chandigarh 26,845 30,316 33,295 9 10 10 6 Chhattisgarh 3,499 11,002 19,796 23 55 72 Dadra & Nagra Haveli, 7 17,560 19,034 20,139 12 12 12 Daman & Diu 8 Delhi 15,64,294 17,23,294 19,29,512 491 508 457 9 Goa 13,598 18,865 20,085 12 14 15 10 Gujarat 32,88,498 35,79,961 38,44,934 1,017 1,055 1,102 11 Haryana 3,96,852 4,99,489 5,84,455 466 542 603 12 Himachal Pradesh 7,715 9,926 13,983 15 22 26 13 Jharkhand 1,40,014 1,75,143 1,94,116 111 131 156 14 Karnataka 4,41,432 5,01,910 5,91,851 379 455 516 15 Kerala 76,894 1,37,524 1,55,395 146 222 251 16 UT of Ladakh 0 0 0 0 0 17 Madhya Pradesh 2,39,468 2,89,948 3,30,990 337 397 424 18 Maharashtra 36,17,571 42,50,826 47,08,779 964 1,122 1,309 19 Manipur 0 0 0 0 0 20 Meghalaya 0 0 0 0 4 21 Mizoram 0 0 0 0 0 22 Nagaland 0 0 0 0 0 23 Odisha 1,21,446 1,61,281 1,84,997 105 137 159 24 Puducherry 0 0 75 5 15 15 25 Punjab 87,548 1,08,161 1,37,830 246 271 305 26 UT of J & K 0 0 0 1 3 3 27 Rajasthan 3,20,845 4,38,939 5,29,111 354 455 496 28 Sikkim 0 0 0 0 0 29 Tamil Nadu 30,525 79,218 1,32,226 338 436 503 30 Telangana 2,11,940 2,36,044 2,63,342 186 225 245 31 Tripura 62,136 66,139 70,840 18 27 30 32 Uttar Pradesh 16,50,326 19,35,296 22,45,832 1,081 1,215 1,367 33 Uttarakhand 82,704 88,953 93,904 42 51 57 34 West Bengal 24,644 74,992 1,52,328 127 200 242 Grand Total 1,29,22,516 1,50,41,471 1,69,49,377 6,861 8,067 8,916 *****

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