It is time to tighten the seat belts as far as the country’s energy security is concerned.
The country’s natural gas output has fallen for the 16th straight month in March by 10.1 per cent year-on-year. Crude oil production, too, dipped by 2.9 per cent.
Inadequate indigenous production of crude oil and natural gas has meant higher dependence on more expensive imports.
Currently, India imports more than 2.4 million barrels of oil a day of which approximately 0.75 million barrels come from domestic supplies. Domestic gas production is about 115 mmscmd and supply is about 165 mmscmd. The gap is met through imports.
Availability of imported oil and gas has been fluctuating from time to time depending upon the demand, price, and tie-ups with the suppliers.
KG Basin D6 block output
The drop in output from Reliance Industries-operated Krishna Godavari Basin D6 block, which is the major source of natural gas, pulled down the domestic gas output to 3.849 billion cubic meter (4.282 billion cubic meter) in March, according to the Ministry of Petroleum and Natural Gas data.
Gas output from offshore fields fell 13.6 per cent annually in March to 3.066 billion cubic meter (3.549 billion cubic meter). This is expected to further decline.
Mumbai High fields production
Crude oil output, which had marginally increased year-on-year in February, dropped to 3.218 million tonnes in March (3.315 mt in the same month last year). This was mainly because production from Assam fields fell 100 per cent and ONGC’s Mumbai High fields produced 4.7 per cent less year-on-year.
Mumbai High fields, which account for 42 per cent of domestic oil production, are experiencing a natural decline in output.
Total refinery output of the 17 public sector and two private sectors was up 1.6 per cent year-on-year at 15.238 mt.
Reliance Industries processed 6.6 per cent more crude oil in March against the same month last year from its first refinery in Jamnagar. The company does not share data for its second export-oriented refinery at Jamnagar. Essar’s Vadinar refinery processed 10.4 per cent more.
Petroleum product consumption in March was up 5.1 per cent year-on-year at 13.499 mt. Diesel sales rose 10.3 per cent, while petrol consumption was up 11.5 per cent. Naphtha and natural gas combined saw an increase of 19.5 per cent year-on-year.