2. INTRODUCTI
ON OF OIL
AND GAS
INDUSTRY
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• Oil and gas are amongst the most
important resources that we have.
• The indian oil and gas sector is
one of the six core industries in
india.
• The indian oil and gas sector is of
strategic mporatnce and plays a
predominantly pivotal role in
influencing decisions in all other
spheres of the economy.
3. OIL AND
GAS
INDUSTRY
IN INDIA
• The oil and gas industry in India dates back to 1889 when
the first oil deposits in the country were discovered near
the town of Digboi in the state of Assam. The natural
gas industry in India began in the 1960s with the discovery
of gas fields in Assam and Maharashtra (Bombay high). As
on 31 March 2018, India had estimated crude oil
reserves of 594.49 million tonnes (MT) and natural gas
reserves of 1339.57 billion cubic meters (BCM).[1
• India imports 82% of its oil needs and aims to bring that
down to 67% by 2022 by replacing it with
local exploration, renewable energy and
indigenous ethanol fuel.[3] India was the second top
net crude oil (including crude oil products) importer of
205.3 Mt in 2019
4. ASSAM SCENARIO
• The history of Oil and Gas Industry in
India dates back to 1889 when India's first
oil well was Drilled near Digboi town of
Assam. The Digboi refinery was
commissioned in the year 1901 and is
currently the oldest operating Refinery in
India. Today the State is one of the
leading producer of onshore crude oil and
contributes over 24% of total Onshore
Crude production which is about 12.18%
of total crude production in the country.
Assam currently has proven oil reserves
of about 1.6 Billion Tonne.
5. ▪ Assam was the starting point form where the oil industry in
india took to its wings way back in the 19th century. Serveral
oil seepages were observed in the districts of upper assam
making quite a number of people to start drilling. Although
these attempt's met with mixed success, it was in 1889 when
well at naharkatiya yielded oil to make production
commercially viable. In 1899, the assam oil company was
formed to take up the oil interest in the digboi- Makum area
and in the same year Asia's first oil rifinery. the digboi refinery
.was established with capacity to refine nearly 500 barrels of
oil a day.
▪ More than 100 oilfields are located in Assam. These oilfields
are owned by various Central and State utilities producing over
4.203 MMT of crude oil and 3128 MMSCM of Natural Gas
annually.The State has a refining capacity of 7.00
MMTPA. Following are the Refineries Operational in the State.
INDIAN OIL CORPORATION, ASSAM
MMT – MILLION METRIC TONNES
MMTPA – MILLION METRIC TONNES
PER ANNUM
6. • The natural gas production in the Indian state of Assam
amounted to approximately 3.3 billion metric standard cubic
meter per day during fiscal year 2019. This was an increase
from about 3.2 million metric standard cubic meter per day in
the previous fiscal year
• The onshore crude oil production across the Indian state of
Assam amounted to almost 4.3 million metric tons at the end of
fiscal year 2019. About 71 percent of the crude oil production
in the country was done by Oil and Natural Gas Corporation,
which is a state owned enterprise.
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8. RAJASTHAN SCENARIO
• Oil fields in Rajasthan state are emerging as a major oil
and gas producer. Aishwarya oil field is located in Barmer
district in Rajasthan state in India. It is India's second
biggest oil discovery ; Cairn Energy Executives described
as a 'living goddess'. It went into production in March,
2013 starting off at 30,000 barrels per day. The MBA field
is expected to scale up to 200,000 in two years, which
will be around 10% of India's total oil consumption. At its
peak rate, its production will be equal to around 30% of
India's present oil production
9. MANGALA AREA
• The Mangala field in Rajasthan, discovered in January 2004, is the largest onshore oil discovery in India in more than a
decade. Mangala, Bhagyam and Aishwariya fields, the three major discoveries in the Rajasthan block, together have gross
hydrocarbons in place of about 2.2 billion barrels of oil equivalent. Oil and gas are currently being produced from
Rajasthan, Ravva in Andhra Pradesh and Cambay in Gujarat. Cairn India is the operator of the field, a subsidiary
of Vedanta Group.
• Despite containing a massive 3.6 billion barrels (570,000,000 m3) of in-situ oil, the recovery factor for the field is
roughly around 30%, giving it reserves of approximately 1 billion barrels (160,000,000 m3). This level of recovery is a
result of the properties of the oil rather than to do with the geological settings of the reservoir which can often hamper
recovery factors.
•
11. The onshore natural gas production in the Indian state of Rajasthan amounted to
approximately 1.5 billion metric standard cubic meter per day during fiscal year
2019. This was an increase from about 1.4 billion metric standard cubic meter per
day in the previous fiscal year.
The crude oil production amounted to approximately 7.7 million metric tons in
Rajasthan, India at the end of fiscal year 2019, down from about 7.9 million
metric tons in fiscal year 2018. About 71 percent of the crude oil production in
the country was done by Oil and Natural Gas Corporation, which is a state owned
enterprise.
12. Region Crude oil
reserves
(in million metric
tonnes)
Share of oil
(%)
Natural gas
reserves
(in BCM-Billion
cubic metres)
Share of
gas (%)
Assam 159.96 26.48 158.57 12.29
Rajasthan 24.55 4.06 34.86 2.70
13. CONCLUSION
• The Indian oil and gas sector is one of the six core industries in
India and has very significant forward linkages with the entire
economy government has taken many steps to regulate it. The
steps are also taken to increase the indigenous oil and gas
reserves.
• Although there are few loopholes which should be taken care of
as soon as possible, one major drawback in the E&P sector is
that the regulatory body (DGH) does not have any statutory
value. The decisions of the DGH are merely advisory in nature
and the government is not to follow them.