India’s output of crude oil this year is lowest in 7 years
In October, production went down by about 5 percent to 2,885 thousand tonnes, the lowest output in that month in the past five years since 2013
November 23, 2018
New Delhi: India’s output of crude oil during the first seven months of the current fiscal (April-October 2018) is the lowest in the last seven years, according to fresh data sourced from the oil ministry. The oil production for the period between April and October 2018 stood at 20,294 thousand tonnes. In October, production went down by about 5 percent to 2,885 thousand tonnes, the lowest output in that month in the past five years since 2013.
Oil production by India’s largest oil and gas producer Oil and Natural Gas Corporation (ONGC) slumped by 6.56 per cent to 1,765 thousand tonnes in October. Its share in the country’s total oil production fell to 61.18 percent during the month from 62.19 percent in October 2017. ONGC’s oil production in the April-October 2018 period fell 5.68 per cent to 12,441 thousand tonnes.
OIL’s crude production fell by 1.35 per cent to 283 thousand tonnes in October. Its share in the country’s total production increased marginally to 9.80 percent during the month as compared to 9.44 percent in the same months last year. The period between April and October 2018 saw OIL’s oil production declining by 3.65 percent to 1,968 thousand tonnes.
Oil production from fields operated by private players and joint ventures decreased 2.89 per cent to 836 thousand tonnes in October as compared to 861 thousand tonnes in the same month last year.
What are the reasons?
According to data, the decline in crude oil production can be primarily attributed to the fall in output from nearly all the offshore and onshore blocks. The slump in output, in turn, has pushed India’s dependence on oil imports. Currently, India imports about 80 percent of the oil consumed at home. The fall also comes at a time when India’s oil import bill is expected to swell by 42 per cent to $125 billion in the current financial year (2018-19) on the back of the recent rally in global oil prices and a depreciating rupee against the dollar.