Oil and gas industry in India

The oil and gas industry in India dates back to 1889 when first oil deposits in the country were discovered near the town of Digboi in the state of Assam. The natural gas industry in India began in the 1960s with the discovery of gas fields in Assam and Gujarat. As on 31 March 2015, India had estimated crude oil reserves of 763.48 million tonnes and natural gas reserves of 1488.49 billion cubic meters (BCM).

India was the fourth top net crude oil (including crude oil products) importer of 163 Mt in 2015.[1]

History

The first oil deposits in India were discovered in 1889 near the town of Digboi in the state of Assam.[2]

The natural gas industry in India began in the 1960s with the discovery of gas fields in Assam and Gujarat. Natural gas gained further significance after the discovery of large reserves in the South Basin fields by ONGC in the 1970s.[3]

Reserves

As on 31 March 2015, India had estimated crude oil reserves of 763.48 million tonnes. The largest reserves are found in the Western Offshore (43.67%), and Assam (22.19%). The estimated reserves of natural gas in India as on 31 March 2015 was 1488.49 billion cubic meters (BCM). The largest reserves of natural gas are located in the Eastern Offshore (37.10%) and the Western Offshore (29.34%).[4]

Distribution of reserves by state/region

The following table shows the estimated crude petroleum and natural gas reserves in India by state/region as on 31 March 2015.[4]

Region Crude oil reserves
(in million metric tonnes)		 Share of oil (%) Natural gas reserves
(in billion cubic metres)		 Share of gas (%)
Arunachal Pradesh 1.63 0.21 0.78 0.05
Andhra Pradesh 13.19 1.73 48.44 3.25
Assam 169.42 22.19 151.40 10.17
Cold Bed Methane 0 0 100.37 6.74
Eastern Offshore[lower-alpha 1] 56.42 7.39 552.24 37.1
Gujarat 138.49 18.14 72.20 4.85
Nagaland 2.69 0.35 0.12 0.01
Rajasthan 37.33 4.89 36.95 2.48
Tamil Nadu 10.80 1.41 47.59 3.20
Tripura 0.07 0.01 41.75 2.80
Western Offshore[lower-alpha 2] 333.44 43.67 436.65 29.34
Total 763.48 100 1488.49 100

Strategic Petroleum Reserve

The Indian Strategic Petroleum Reserve (ISPR) is an emergency fuel store of total 5 MMT (million metric tons) or 36.92 MMbbl of strategic crude oil enough to provide 10 days of consumption which are maintained by the Indian Strategic Petroleum Reserves Limited.[5][6][7]

Strategic crude oil storages are at 3 underground locations in Mangalore, Visakhapatnam and Padur near Udupi are located on the east and west coasts of India are readily accessible to the refineries. These strategic storages are in addition to the existing storages of crude oil and petroleum products with the oil companies and serve in response to external supply disruptions.[8]

Production

India produced 221.13 MTs of crude petroleum in 2014-15, recording a growth of 0.16% over the previous fiscal. Among petroleum products, high speed diesel oil accounted for 43%, and followed by Motor Gasoline (15%), Naptha (8%), Petroleum Coke (6%), Fuel Oil (5%) and Aviation Turbine Fuel (5%). India produced 32.78 billion cubic meters of natural gas in 2014-15, a decline of 5.35% from the previous fiscal. Production of crude petroleum in India rose from 32.19 MT in 2005-06 to 37.46 MT in 2014-15, a CAGR of about 1.53%. The CAGR for natural gas production during the same period was 0.44%.[4]

Petroleum refining

As on 31 March 2015, there were 22 refineries in India, of which 17 were state-owned, 3 were privately owned and 2 were joint ventures. The total oil refining capacity in India stood at 215 MMT. Refineries in India processed 222.938 MMT of oil in 2014-15 achieving a capacity utilization of 103.7%. With a total refining capacity of 54,200 TMTY, the state-owned Indian Oil Corporation was the largest refiner in the country. Indian Oil's refineries processed 53,585 TMTof crude oil in 2014-15.[4]

Consumption

The total consumption of crude oil in India rose from 130.11 MMT in 2005-06 to 223.24 MMT in 2014-15 with a CAGR of 5.55%. High speed diesel oil accounted for 37.99% of total consumption of all types of petroleum products in 2014-15, followed by Petrol (10.44%), LPG (9.86%), Refinery (9.67), Petroleum Coke (7.88%) and Naphtha (5.98%). The two largest consumers of natural gas are the fertilizer industry (29.71%) and power generation (20.97%). Use of natural gas as a domestic fuel accounted for 0.07% of total consumption.[4]

India is highly dependent on import of crude oil. Net imports of crude oil rose from from 99.41 MTs during 2005-06 to 189.43 MTs during 2014-15. Although more than 70% of its crude oil requirements and part of the petroleum product requirement is met from imports, India has developed sufficient processing capacity over the years to produce different petroleum products. As result, India is now a net exporter of petroleum products. The export of petroleum products increased from 23.46 MT in 2005-06 to 63.93 MT during 2014-15.[4]

Electricity generation

Gas is an important source for electricity generation in India. As on 31 October 2016, the installed capacity of gas-based power plants in India was 25,057.13 MW, accounting for 8.2% of the total installed capacity. Diesel is a minor source for electricity generation in India. The total installed capacity of diesel-based power plants in India is 918.89 MW accounting for a mere 0.3% of total installed capacity.[9]

India's electricity sector consumed 20.97% of the natural gas produced in the country in 2014-15.

See also

Notes

  1. ↑ Includes joint ventures/private parties for Crude Oil and includes West Bengal for Natural Gas
  2. ↑ Includes Bombay High offshore, Rajasthan and joint venture companies for Crude Oil, and Bombay High offshore, Rajasthan and Madhya Pradesh for Natural Gas

References

  1. ↑ "BP Statistical Review of world energy 2016" (PDF). Retrieved 17 June 2016.
  2. ↑ "Digboi: The First Oil Well in India". EduGreen. The Energy and Resources Initiative. Retrieved 23 July 2012.
  3. ↑ "NATURAL GAS SCENARIO IN INDIA" (PDF). http://petroleum.nic.in. Retrieved 18 November 2016. External link in |website= (help)
  4. 1 2 3 4 5 6 "Energy Statistics 2016" (PDF). http://mospi.nic.in. Retrieved 18 November 2016. External link in |website= (help)
  5. ↑ "Filling of strategic oil reserves delayed". Retrieved 2015-12-23.
  6. ↑ Alexander's Gas & Oil Connections - India to build up storage of crude oil
  7. ↑ "Store Our Oil And Take Two-Thirds For Free: UAE's Offer to India". NDTV. Retrieved 2016-02-10.
  8. ↑ "Indian Strategic Petroleum Reserves Limited". Retrieved 2016-01-29.
  9. ↑ "All India Installed Capacity of Utility Power Stations" (PDF). Retrieved 19 October 2016.
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