In India, the oil and gas industry dates back to 1889. when the first oil deposits in the country were found near the town of Digboi in the state of Assam. The natural gas industry in India started in the 1960s with the finding of gas fields in Assam and Gujarat.
As on 31 March 2015, India had projected crude oil reserves of 763.48 million tonnes and natural gas reserves of 1488.49 billion cubic meters. India imports 82 per cent of its oil needs and purposes to bring that down to 67% by 2022 by swapping it with local exploration, renewable energy and original ethanol fuel (c. Jan 2018). India was the 4th top net crude oil (including crude oil products) importer of 163 Mt in 2015. The first oil deposits in India were found in 1889 near the town of Digboi in the state of Assam.
The natural gas industry in India started in 1889 with the finding of gas fields in Assam and Gujarat. Natural gas increased further significance after the finding of large reserves in the South Basin fields by ONGC in the 1970s.
India had projected crude oil reserves of 621.10 million tonnes, falling by 2.28% from the previous year. The major reserves are found in the Western Offshore (39.79%), and Assam (25.89%). The estimated reserves of natural gas in India as on 31 March 2016 was 1227.23 billion cubic meters, falling by 1.97% from the previous year. The largest reserves of natural gas are situated in the Eastern Offshore (36.79%) and the Western Offshore (23.95%)
India formed 36.95 MTs of crude petroleum in 2015-16. Manufacture of crude petroleum in India had a CAGR of 0.84% between 2006-07 and 2015-16. The CAGR for natural gas production during the same period was 0.16 per cent. India formed 231.92 MTs of petroleum products in 2015-16, recording a growth of 4.88 per cent over the previous year. Among petroleum products, high-speed diesel oil accounted for 42.51 per cent, followed by Motor Gasoline (15.23 per cent).
India formed 25.46 billion cubic meters of natural gas, a decline of 5.41% from the earlier fiscal. High-speed diesel oil accounted for 46.42% of total consumption of all forms of petroleum products of natural gas as a domestic fuel accounted for 11.42 per cent of total consumption. Gas is a significant source for electricity generation in India.
As on 23 October 2015, the connected capacity of gas-based power plants in India was 25,057.13 MW, accounting for 7.9 per cent of the total installed capacity. Diesel is an insignificant source for electricity generation in India. The total connected capacity of diesel-based power plants in India is 927.89 MW accounting for a mere 0.3per cent of total installed capacity.
India’s electricity sector about consumed 20.97% of the natural gas produced in the country. India is expected to be unique of the largest contributors to non-OECD petroleum consumption development globally. In October 2017 Oil imports rose sharply year-on-year by 27.89 % to US$ 9.29 billion. India’s oil consumption grew 8.3% year-on-year to 212.7 million tonnes in 2016, as against the global growth of 1.5 %, thus making it the third-largest oil consuming nation in the world.
India is the 4th largest Liquefied Natural Gas (LNG) importer after South Korea, Japan and China and accounts for 5.8% of the total global trade. Domestic LNG demand is expected to grow at a CAGR of 16.89% to 306.54 MMSCMD by 2021 from 64 MMSCMD in 2015.
India’s oil request is expected to grow at a CAGR of 3.6 per cent to 458 Million Tonnes of Oil Equivalent (MTOE) by 2040, while demand for energy will more than dual by 2040 as economy will grow to more than five times its current size, Gas production will be expected touch 90 Billion Cubic Metres (BCM) by 2040, the Refining Capacity of India is likely to reach 256.55 MMTPA by 2019-20.