Overview of the Oil & Gas Industry
Securing Energy and Feedstock Supplies for India's Economic Rise
Natural gas production in 2014–15 (till December 2014) was about 25.319 billion cubic metre (BCM). The share of offshore natural gas production in 2014–15 was about 74 per cent. Infrastructure to import greater volume of LNG is also on the radar. This includes setting up new LNG terminals, raising existing terminal capacity and expanding the gas grid. There are plans to auction 69 small and marginal oil and gas fields to private companies with a new revenue sharing model.
Tap unconventional resources
The Directorate General of Hydrocarbons has estimated the coal bed methane resources to the tune of 92 tcf (2.61 tcm). India’s shale gas reserves stands between 300 tcf (8.5 tcm) and 2,100 tcf (59.5 tcm).
Unexplored reserves – hindering the growth of domestic production
India is the fourth-largest energy consumer internationally, its sedimentary basins remain underexplored and the oil and gas production has been relatively stagnant. India has 26 sedimentary basins covering an area of 3.14 million km2. These sedimentary basins are divided into four categories based on their degree of prospectivity.
- Category 1—Refers to established commercial production. There are seven basins under category 1 and deep water areas producing crude oil and natural gas in India.
- Category 2—Known accumulation of hydrocarbons but no commercial production as yet.
- Category 3—Indicated hydrocarbon considered geologically prospective.
- Category 4—Uncertain potential, which may be prospective by analogy with similar basins in the world.
The introduction of NELP has proved to be successful in attracting the interests of national oil companies as well as private domestic along with a few verse as players. India is the fourth largest energy consumer internationally.