Question : PRODUCTION OF CRUDE OIL



(a) whether there is a huge gap between the demand and the indigenous production of crude oil;

(b) if so, the details thereof;

(c) the efforts made to increase the production and reduce the gap between production and demand;

(d) the impact of these efforts; and

(e) the details of further steps being taken to increase further production?

Answer given by the minister


MINISTER OF PETROLEUM AND NATURAL GAS (SHRI RAM NAIK)

(a) to (e): A statement is laid on the Table of the House.

Statement referred to in reply to the Lok Sabha Starred Question NO. 363 for answer on 14.12.2000 regarding Production of Crude Oil


(a) & (b): Yes Sir. There is a gap between the indigenous production of crude oil and the demand thereof, in terms of refinery throughput. The position in this regard during the last five years is as given below:-

Production and Demand of Crude oil (Million Metric Tonnes)

Year	Production	Demand	(in terms of refinerycrude throughput)
1996-97 32.901 62.870 1997-98 33.858 65.166 1998-99 32.722 68.538 1999-2000 31.949 85.964 2000-2001(BE) 32.462 112.823
BE: Budget Estimates



(c) to (e): 1. The Government has taken several measures to increase crude oil production in the country which include :


(i) To improve the recovery factor from existing major fields by implementing Enhanced Oil Recovery (EOR)/Improved Oil Recovery (IOR) schemes. These would also help in accelerating oil production from the fields.

(ii) To add reserves by exploring in the deeper layers in the producing areas.

(iii) To explore in the new areas specially in deep water and difficult frontier areas.

(iv) To develop faster the newly discovered oil fields.

(v) To increase workover and stimulation operations.

(vi) To increase exploration efforts through the New Exploration Licensing Policy (NELP).

(vii) To increase use of 3-D seismic surveys in new and producing areas.



ONGC has also taken steps by way of advancing their plans and inputs to produce additional 0.5 MMT of crude oil over and above the annual Memorandum of Understanding (MOU) target of 24.6 MMT in the current year i.e. 2000-2001.

2. The indigenous production during the year 2001-02 is estimated to be about 32.30 MMT. The production for the subsequent 2-3 years would have been of a similar magnitude; however, measures enumerated above are expected to increase the production.