Overflowing inflation & crude index, India’s Oil minister Mr. Reddy has prompted growth in production about 21% to 45.57 million tones in 2013-14. Minister confirmed about the initial back up output from newer fields like Cairn Indian Rajasthan block. Currently India has production capacity of 37.68 MT of crude oil in 2010-11. As OPEC projections are also not too high as compared to last years, whereas India’ projected expected rise about 38.18 MT during the current fiscal.
Burning issue here as India’ complete dependency on imports to meet 79% of its crude oil needs. In upcoming years, the biggest contributor is likely to be Cairn India, whose Rajasthan block is presently producing 125,000 barrels of crude per day, or 6.25 MT a year. The block is probable to create 240,000 bpd, or 12 MT, by 2013-14. Apart from this, no major expansions or exploration in the country.
Poor recovery at Reliance Industries basin at South would one of the reasons of overall lesser output. Particular increase in capacity would mainly coming from the 15 MT IOC refinery. As IOC Paradip would be commissioned soon as well as 9 MT per annum from Bhatinda unit which is being set up by a joint venture between HPCL and Mittal Steel.
Still reliability is bending towards outside productions, the key cause of economic crisis in India. Stability bit far away from country’s progressive growth in terms of crude balance. Except searching for other crude options, no alternative available today.
Principal Issues of Concern:
- No Crude Input available
- Independence nightmare
- Potential E&P infrastructure not available in the country
- Dollar index rising day by day
- No control over international crude price
Source: News Agencies, Image Courtesy: cardekho.com