Petroleum & Natural Gas Minister M. Veerappa Moily may find the going tough if the declining trend in domestic natural gas and fluctuations in crude oil output continues.
Domestic oil and gas production declined by 2.4 per cent and 18.7 per cent, respectively, in May, resulting in more imports.
For the past two years now, domestic gas output has been falling, mainly due to unexpected production declines in the country’s largest gas fields in the East Coast operated by Reliance Industries Ltd.
India at present imports about 73 per cent of its energy needs. Over the years, the country’s dependence on oil imports has only increased. The Minister has rolled out an ambitious plan that aims to reduce imports by 50 per cent by 2020, 75 per cent by 2025, and achieve self-sufficiency by 2030.
But people tracking the industry have expressed doubts over this plan.In May, refiners imported 14.84 million tonne of crude oil.
Crude oil output in May was affected by natural decline in the producing fields, as also by external factors like bandhs and blockades in Assam.
Consumption up
According to Petroleum Planning & Analysis Cell (PPAC) data, the petroleum product demand during May was up 2.27 per cent year-on-year. To cater to the growing demand for petroleum products, the refiners turned five per cent more crude oil into fuel during the year under review against the previous year.
According to PPAC, the consumption estimates represent the market demand and is aggregate of sales by oil companies in domestic market and consumption through direct imports by private parties.
While the data for company sales were actual that of private direct imports are estimates, it said.