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Pressure is mounting on oil and gas exploration companies as the country’s natural gas output has fallen for the 17th straight month in April by 11.3 per cent year-on-year.
Crude oil production, too, dipped 1.3 per cent.
Inadequate indigenous production of crude oil and natural gas has meant higher dependence on more expensive imports. The availability of imported oil and gas has been fluctuating from time to time depending upon the demand, price, and tie-ups with the suppliers.
The domestic gas production is about 115 mmscmd, and supply is about 165 mmscmd. The gap is met through imports.
Today, gas price in the country varies from $4.2/mmBtu to as high as $16/mmBtu. The drop in output from Reliance Industries-operated Krishna Godavari Basin D6 block, which is the major source of natural gas, pulled down the domestic gas output to 3.633 billion cubic metre (4.096 billion cubic metre) in April, shows Ministry of Petroleum and Natural Gas data.
Gas output from offshore fields fell 14.2 per cent annually in April at 2.904 billion cubic metre (3.386 billion cubic metre). This is expected to further decline. The D6 block is currently producing 32 mmscmd of gas (26 mmscmd from D1 and D3 fields and 6 mmscmd from MA fields in the block).
Currently, India imports more than 2.4 million barrels of oil a day of which approximately 0.75 million barrels of oil a day come from domestic supplies.
The country’s crude oil output, which had marginally increased year-on-year in February, dropped for second consecutive month in April at 3.144 million tonne annually (3.186 million tonne in the same month last year). This was mainly because production from Assam fields fell 100 per cent and ONGC’s Mumbai High fields produced 3.6 per cent less year-on-year.
The Mumbai High fields that account for 42 per cent of domestic oil production are experiencing a natural decline in output.
Total refinery output of the 17 public sector and two private sectors was down 2.8 per cent year-on-year at 13.614 million tonne. This was mainly because the public sector refiners processed 7.7 per cent less in April and refineries were shut down for maintenance.
Reliance Industries from its first refinery in Jamnagar processed 4.9 per cent more crude oil in April against the same month last year. The company does not share data for its second export oriented refinery at Jamnagar. Essar’s Vadinar refinery processed 19.2 per cent more.
Petroleum product consumption in April was up 0.16 per cent year-on-year at 12.66 million tonne. Diesel sales rose by 8 per cent in April, while petrol consumption was up 3.74 per cent year-on-year.
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