Page 68 - Book_Wec 06-09-SINGLES-Hi-Res

ndIa is the second largest refiner in asia after China and is third 16,800 km long gas pipeline network is under operation in the country
largest consumer of oil after US & China. Though there is an in- and a further 14,200 km pipeline is approved or under construction.
Icreased focus on gas and renewable as sources of energy, the de- Government is planning a roadmap to reduce the dependency on im-
mand for oil has always been on the rise and remains at about 30% port in energy by 10% by 2021-22.
of the total demand. However, natural gas is emerging as a significant
energy source, contributing about 10% of the total primary energy Policy initiatives and Reform Measures
consumption. a major part of these resources is from imports where
oil imports constitute about 83.7% of total domestic oil consumption The Government has been extremely proactive in introducing mea-
1
in 2018-19 and natural gas constitutes 47.2% of domestic natural gas sures to give a boost to the sector. The reforms in hydrocarbon sector
consumption. are based on the following guiding principles:
Given the increased awareness amongst countries to reduce the 1. Enhance domestic Oil and Gas Production
carbon footprint of the energy industry, oil and gas sector are expect- 2. Bring Substantial Investment
ed to play significant role. natural gas, with its inherent advantages 3. Generate Sizable Employment
over other alternatives, is expected to emerge as the preferred fuel. 4. Enhance Transparency
Further, with the thrust on renewable energy, the Indian government 5. Reduce administrative discretion
has set a target of 175 GW of installed capacity of renewable energy by
2022 and a 10% reduction of oil and gas import dependence by 2022. • In 2018, the Government of India launched the Bid Round-I
under Open acreage Licensing Policy (OaLP) for interna-
Where we stand tional competitive bidding. OaLP Bid Rounds-II and III were
recently launched on 7th January, 2019 and 10th February,
Oil and gas contributes about 41.73% to primary energy consumption 2019 respectively.
2
in India . The estimated proved and inferred balance recoverable re- OaLP gives an option to a company looking for
serves of Crude Oil and natural Gas (april 2018) are 594.5 MMT and exploring hydrocarbons to select the exploration
1339.6 BCM respectively. India has 26 sedimentary basins covering blocks on its own, without waiting for the formal bid
an area of 3.36 mn square kilometres. India’s refinery capacity has round from the Government. Under Open acreage
increased to 249.4 MMTPa ((Million Metric Tons Per annum) and is Licensing Policy (OaLP), a bidder intending to ex-
3
estimated to reach 280.320 MMTPa by 2022. Geographical distribu- plore hydrocarbons like oil and gas, coal bed meth-
tion indicates that the maximum Crude Oil reserves are in Western ane, gas hydrate etc., may apply to the Government
Offshore (40%) followed by assam (27%), and the maximum reserves seeking exploration of any new block (not already
of natural Gas are in Eastern Offshore (38%) followed by Western Off- covered by exploration). The Government will ex-
4
shore (23%) . amine the Expression of Interest and justification.
Production of crude oil has increased from 33.51 MTs during 2008- • In March 2016, Hydrocarbon Exploration and Licensing
09 to 34.2 MTs in 2018-19. In the year 2018-19, the production of Pe- Policy (HELP) replaced new Exploration Licensing Policy
troleum Products in India was 262.4 MT as against 254.4 MT during (nELP). Four main facets of this policy are:
2017-18, an increase of 3.1% . In the total production of petroleum i. Uniform license for exploration and production of
5
products, high-speed diesel oil accounted for the maximum share fol- all forms of hydrocarbon,
lowed by motor spirit. net production of natural Gas increased from ii. an open acreage policy,
31.7 Billion Cubic Meters (BCM) in 2017-18 to 32.1 BCM in 2018-19. iii. Easy to administer revenue sharing model and
Substantial refinery capacity additions over the years have led this iv. Marketing and pricing freedom for the crude oil and
growth in crude oil consumption making India a net exporter of petro- natural gas produced.
leum products. The total contribution of petroleum sector to exche-
quer has increased from InR 3,32,619 crore (USd 46.42 Bn) in FY 2015 HELP was devised to ensure higher domestic oil &
6
to InR 5,95,438 crore (USd 83.09 Bn) in FY 2019 . at present, about gas production, to attract substantial investment in

54 shaping new energy dimensions