New Delhi: India’s production of crude oil and natural gas declined in 2024-25 as output from mature fields continued to fall.
Crude oil output dropped 2.5% year-on-year to 26.5 million metric tonnes (MMT) in 2024-25. Domestic crude production has been falling every year for a decade, down 26% from 35.9 MMT in 2014-15.
Natural gas production declined by 1% to 36.1 billion cubic meters in 2024-25, after rising for three consecutive years. The previous growth was driven by output from Reliance Industries’ new fields in the KG Basin. However, a decline has now set in at Reliance’s KG-D6 block, impacting national gas output. Production in 2024-25 is only about 7% higher than it was a decade ago.
“We need major discoveries to increase our production. We haven’t made any in oil or gas in a while,” said an industry executive.
Most of India’s producing fields were discovered decades ago and are on a natural decline path. Producers have been using technological interventions to slow this decline. But to boost overall output, it is essential to make major new discoveries and bring them into production.
The government is hopeful that the new oilfield regulatory law will help attract foreign investors to India’s exploration sector, potentially leading to new discoveries.
Falling domestic oil and gas output has pushed up India’s import bill, as more foreign energy is needed to meet the growing demands of a fast-expanding economy.
In 2024-25, India imported 88% of the crude oil and 51% of the gas it consumed. The country spent $137 billion on crude imports in 2024-25, up from $133 billion the previous year. Spending on foreign gas rose to $15 billion from $13 billion.
India’s consumption of petroleum products also slowed in 2024-25. Growth in consumption narrowed to 2%, down from 5% the previous year, mainly due to weaker sales of diesel, naphtha and bitumen.
Crude oil output dropped 2.5% year-on-year to 26.5 million metric tonnes (MMT) in 2024-25. Domestic crude production has been falling every year for a decade, down 26% from 35.9 MMT in 2014-15.
Natural gas production declined by 1% to 36.1 billion cubic meters in 2024-25, after rising for three consecutive years. The previous growth was driven by output from Reliance Industries’ new fields in the KG Basin. However, a decline has now set in at Reliance’s KG-D6 block, impacting national gas output. Production in 2024-25 is only about 7% higher than it was a decade ago.
“We need major discoveries to increase our production. We haven’t made any in oil or gas in a while,” said an industry executive.
Most of India’s producing fields were discovered decades ago and are on a natural decline path. Producers have been using technological interventions to slow this decline. But to boost overall output, it is essential to make major new discoveries and bring them into production.
The government is hopeful that the new oilfield regulatory law will help attract foreign investors to India’s exploration sector, potentially leading to new discoveries.
Falling domestic oil and gas output has pushed up India’s import bill, as more foreign energy is needed to meet the growing demands of a fast-expanding economy.
In 2024-25, India imported 88% of the crude oil and 51% of the gas it consumed. The country spent $137 billion on crude imports in 2024-25, up from $133 billion the previous year. Spending on foreign gas rose to $15 billion from $13 billion.
India’s consumption of petroleum products also slowed in 2024-25. Growth in consumption narrowed to 2%, down from 5% the previous year, mainly due to weaker sales of diesel, naphtha and bitumen.
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