India’s Crude Oil output declines for the sixth straight year in 2017-18

India’s Crude Oil production fell for the sixth straight year in 2017-18 to 35.68 million tonne, pushing the country’s import dependence for crude further to 82.8% and dampening prospects for the centre’s plan to cut reliance on energy imports by 10% through 2022.

The fall in the country’s Crude Oil production comes at a time India’s oil import bill is expected to increase by 20% to $105 billion in 2018-2019 on the back of recent rally in global oil prices. Crude oil production has been on a decline primarily due to fall in output from nearly all offshore and onshore blocks, data for the last seven years sourced from the oil ministry shows.

However, taken together, India’s Crude Oil and Natural Gas production grew marginally for the first time in five years, publicly available data since financial year 2011-2012 showed. Domestic oil and gas production in 2017-2018 grew 0.58% to 68.3 in Million Tonne of Oil Equivalent (MMTOE) on the back of growth in gas production.

Domestic Natural Gas production in 2017-2018 grew by 2.35% to 32.64 Billion Cubic Meter (BCM) as compared to the year ago period. Data shows the country’s natural gas production grew for the first time in a few years as output from onshore blocks offset the decline from offshore blocks last fiscal.

The country recorded its highest ever Natural Gas production from onshore blocks in 2017-2018. Gas production from onshore blocks including Coal Bed Methane (CBM) grew 8% to 10,639 MMSCM last financial year as compared to 9,858 MMSCM recorded in the previous fiscal.

Source: Commodity Online

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