Covid-19 pandemic hits oil and gas production in Oct

Crude oil production during October 2020 was reported at 2.568 million tonnes. This is 6.24 per cent lower when compared with domestic production during October 2019. Natural gas production was also lower than the same month of last year. During October 2020, domestic natural gas production stood at 2,418.88 million standard cubic metres, which 8.41 per cent lower when compared with October 2019.

The crude oil processed and production of petroleum Products too reported a decline during the month under review. Crude oil processed during October 2020 stood at 18.389 mt which is 16.13 per cent lower when compared with October 2019. Production of petroleum products during October 2020 was 18.877 mt which is 16.97 per cent lower than October 2019.

The fall in crude oil production is because of difficulties in moving essential equipment because of Covid-19 restrictions and lockdowns. There is also a delay in installation of new platforms because of these Covid-related restrictions. In addition to similar issues, natural gas production was also affected due to low upliftment or demand of gas by the major customers.

Processing of crude oil at IndianOil’s Barauni, Koyali, Haldia, Mathura, Panipat and Paradip refineries also had to be regulated because of low product demand due to Covid impact. The same was the situation in CPCL-Manali and MRPL-Mangalore where crude processed was lower due to a hit in demand as an impact of Covid-19 lockdown.