Question : Oil Consumption Growth

(a) whether India’s oil and gas consumption growth is fastest among all major economies and likely to become the most oil consuming country in the world by 2035, if so, the details thereof;
(b) the share of import of crude oil and that of the domestic production in total annual consumption in the country over the last three years and the current year;
(c) the concrete steps taken to reduce the dependence on import and develop substitute for petroleum products in the country;
(d) whether the Government proposes to achieve self-reliance in the production of oil and gas by developing its own resources and if so, the details thereof along with target, if any, set in this regard; and
(e) the quantum of crude oil and natural gas in terms of rupee produced indigenously and the steps taken to diversify our resources and technology to meet the future demand?

Answer given by the minister

MINISTER OF STATE (I/C) IN THE MINISTRY OF PETROLEUM & NATURAL GAS
(SHRI DHARMENDRA PRADHAN)
(a) to (e) A Statement is laid on the Table of the House.
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STATEMENT REFERRED TO PART (a) TO (e) OF LOK SABHA STARRED QUESTION NO.242 FOR REPLY ON 20.03.2017
(a) As per BP Statistical Review of World Energy, 2016, the growth in oil and gas consumption in the major economies over the last year is as follows:
Country
Oil (MMT)
Natural Gas (Mtoe)
Total (in Mtoe)
2014
2015
% growth in 2015 over 2014
2014
2015
% growth in 2015 over 2014
2014
2015
% growth in 2015 over 2014
China
526.8
559.7
6.2
169.6
177.6
4.7
696.4
737.3
5.9
USA
838.1
851.6
1.6
692.7
713.6
3.0
1530.8
1565.2
2.2 India 180.8 195.5 8.1 45.6 45.5 -0.2 226.4 241.0 6.4
Russian Federation
150.8
143.0
-5.2
370.7
352.3
-5.0
521.5
495.3
-5.0
Japan
197.3
189.6
-3.9
106.2
102.1
-3.9
303.5
291.7
-3.9
As per International Energy Agency’s World Energy Outlook 2016, the demand of oil in the “New Policy Scenario” (NPS) in 2035 is projected to be:
Country
Oil Consumption (Mtoe)
2014
2035
CAGR#
China
508
705
-1.13
USA
782
616
1.57
India
185
401
3.75
Russian Federation
143
138
-0.17
Japan
192
109
-2.66
# Compound Annual Growth Rate
(b) The share of import of crude oil and that of the domestic production in total annual consumption in India over the last three years and the current year is as follows:
Imported crude oil requirement for domestic consumption
(Quantity in Million Metric Tonne-MMT)
Description
2013-14
2014-15
2015-16
2016-17*
Total consumption of petroleum products
158.40
165.50
184.70
161.36
Crude oil required for total consumption
169.77
177.38
197.96
172.94
Indigenous petroleum products production
35.50
35.60
35.20
29.05
Imported Crude oil requirement for balance domestic consumption
131.73
139.23
160.24
141.81
% share of Imported Crude (based on domestic consumption)
77.6
78.5
80.9
82.0
* Provisional for the period of April, 2016 to January, 2017
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(c) & (d) During the Urja Sangam held on 27th March, 2015, Hon’ble Prime Minister assigned the target of reducing import dependency in energy by 10% by 2021-22. A Committee was constituted for “Preparing a roadmap to reduce the dependency on import in energy by 10% by 2021-22”. The Committee has submitted its report which envisages a five pronged strategy viz., (i) increasing domestic production, (ii) promoting bio fuels and renewables, (iii) promoting energy efficiency and conservation, (iv) improving refining processes and (v) demand substitution to achieve the target. The report has been accepted by the Government.
Government has taken several steps to enhance exploration & production of oil and gas in the country which include inter-alia Discovered Small Field Policy, National Seismic Programme of unappraised areas, gas pricing reforms, reform initiatives to enhance domestic production, Hydrocarbon Exploration Licensing Policy (HELP), permission of extraction of Coal Bed Methane (CBM) to Coal India Limited and its subsidiaries in coal mining areas, Hydrocarbon Vision for North East, National Data Repository (NDR) and Gas hydrates.
(e) The quantum and value of indigenous production crude oil and natural gas during 2016-17 in Rupee terms is as under:
Items
Quantity *
Value (in Rs. Crore)
Crude Oil (MMT)
35.89
83503
Natural Gas (BCM)
31.77
23729
* estimated for March, 2017
The steps taken/being taken towards diversification of resources and technology include Discovered Small Field Policy, Hydrocarbon Exploration Licensing Policy (HELP) including Open Acreage Licensing Policy (OALP) to help monetization of locked up reserves , exploration and production of unconventional hydrocarbon resources in the country such as CBM, shale oil/gas & gas hydrates and assimilation of related technologies involved.
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