India’s domestic oil production fell again in August; increased gas production

However, according to the monthly production report released by the Ministry of Petroleum and Natural Gas, gas production grew by 20.23 per cent in August.

“Crude oil production during August 2021 was 2,518.56 TMT, which is 5.98% lower than the target for the month and 2.29% lower than the August 2020 production. The cumulative crude oil production during April-August, 2021 was 12,480.21 TMT, which is 3.33. The Ministry of Petroleum and Natural Gas said in the report, “% and 3.15 per cent lower than the production target during the corresponding period of the previous year, respectively.”

India’s domestic energy production has been low. India’s crude oil and oil and gas production declined by 5.22% and 8.06%, respectively, in the last fiscal, which does not bode well for the country’s energy security.

“Natural gas production during July 2021 was 2,891.96 MMSCM, which is 18.36% higher than the July 2020 production but 10.19% lower than the monthly target. The cumulative natural gas production during April-July, 2021 was 11,060.07 MMSCM, which is 19.85% higher than the production during the corresponding period last year, but 5.37% lower than the target for the period.

In addition, the refinery’s output increased in August.

“The crude oil processing during August 2021 was 18,438.58TMT, which is 14.17% higher than August 2020 but 0.33% lower than the target for the month. The cumulative crude throughput during April-August, 2021 was 95,077.05 TMT, which is 15.30% higher than the production for the corresponding period last year, but 2.55% lower than the target for the period.

India plans to increase its refining capacity through 23 refineries from the current installed capacity of 249.36 MTPA to 400 MTPA by 2025.

“Natural gas production during August 2021 was 2,923.94 MMSCM, which is 20.23% higher than the August 2020 production but 10.14% lower than the monthly target. The cumulative natural gas production during April-August 2021 was 13,985.76 MMSCM, which is 19.94% higher than the production during the corresponding period last year, but 6.39% lower than the target for the period.

This comes against the backdrop of India’s spending ₹12 trillion annually to meet energy needs. India is particularly vulnerable because any increase in global prices could affect its import bill, drive up inflation and widen its trade deficit. India spent $101.4 billion on crude oil imports in 2019-20 and $111.9 billion in 2018-19.