Question : IMPORT OF CRUDE OIL



(a) whether the country is mainly dependent on import of crude oil/natural gas to meet the domestic demand of petroleum products;

(b) if so, the quantum of import of crude oil/natural gas country-wise and total expenditure incurred thereon;

(c) the total production of crude oil/natural gas indigenously during the last five years;

(d) whether the Government has chalked out any plan/policy to increase production of crude oil/ natural gas in the country to lower the dependency on import of crude oil/natural gas; and

(e) if so, the detail thereof?

Answer given by the minister


MINISTER OF THE STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI JITIN PRASADA)

(a) Yes, Madam. Domestic production of crude oil/natural gas is not adequate to meet the domestic demand of petroleum products. The dependency on import in the year 2009-10 for crude oil and natural gas was 77.2 % and 20 % respectively.

(b) During 2009-10, the total expenditure incurred on import of 159.2 Million Metric Tonnes (MMT) of crude oil was US$ 79,552 million. The country-wise details of crude oil imports during 2009-10 is given in the Annexure. For the same period, the total expenditure incurred on import of 8.83 MMT of Liquified Natural Gas (LNG) was US$ 2140.01 million. 7.43 MMT LNG was imported by Petronet LNG Ltd. (PLL) from Qatar, Malaysia, Russian Federation, Abu Dhabi, Egypt, Australia, Oman, Algeria, Nigeria, and 1.40 MMT LNG was imported by Hazira LNG Pvt. Ltd (HLPL) from Algeria, Guinea, Indonesia, Nigeria, Qatar, Russian Federation, UAE, Western Australia and West Indies.

(c) The total indigenous production of crude oil/natural gas during the last five years is as under:

Year	Crude oil indigenous	Natural gas production (MMSOVT)	production including	condensate (MMT)

2005-06 32.2 32202

2006-07 33.973 31747

2007-08 34.115 32417

2008-09 33.325 32849

2009-10 33.398 47512

MMT - Million Metric Tonnes

AMMSCM - Million Metric Standard Cubic Meter

(d) & (e): Several measures have been taken to accelerate hydrocarbons explorations and production activities to increase production of crude oil/natural gas in the country and to lower the dependency, which include the followings:-

i) Carving out more and more areas of exploration for offer under various rounds of New Exploration Licensing Policy (NELP) / Coal Bed Methane (CBM) Policy,

ii) Application of Enhanced Oil Recovery (EOR) / Improved Oil Recovery (IOR) techniques for increasing recovery factor from existing fields.

iii) Acquisition of exploration acreages and producing properties overseas to bring in equity oil.

iv) Arresting decline from ageing fields,

v) Substitution of oil through use of alternative/ non-conventional sources of energy such as Bio-Diesel, Ethanol-blended Petrol, extraction of gas from Gas Hydrates under the National Gas Hydrates Programmes (NGHP), etc.