Indian crude oil production slid by 0.7% on the year in July to a total of 2.4 million metric tons, equal to some 568,000 barrels daily, the Petroleum Planning and Analysis Cell of the Indian energy ministry reported, as quoted by the Economic Times.
Crude oil processing, on the other hand, increased last month by 3.2% on the year to 23.3 million metric tons. Of this total, state and joint venture refiners accounted for 15.8 million tons while private refiners accounted for 7.5 million tons.
The bulk of crude processed in the period came from imports, at 20.9 million tons, versus 2.4 million tons of domestically produced crude. Even so, crude oil imports were down on the year in July, by 4.3%, the Petroleum Planning and Analysis Cell also reported.
India is heavily dependent on imports of crude oil to satisfy local demand, with imported crude covering well over 80% of demand. This has spurred government efforts to boost domestic supply, with the latest development in this respect a campaign for tapping more of the country’s deepwater resources.
Earlier this month, Prime Minister Narendra Modi announced a national deepwater exploration mission, saying, “India will harness its deepwater energy resources, strengthening energy self-reliance and reducing dependence on foreign fuel imports.”
The deepwater exploration mission will add to another mission, the National Critical Minerals Mission, to secure resources essential for energy, industry, and defense. India intends to launch exploration at 1,200 sites for critical minerals.
Also this month, the National Oil and Gas Corporation launched a campaign to expand oil and gas production through well optimization and accelerating the start of production at recently made discoveries. ONGC produces some 70% of India’s crude oil and 84% of its natural gas, but natural depletion has caused a consistent decline in both, prompting efforts to reverse the process.
By Irina Slav for Oilprice.com
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