7.4. Oil and Gas Production

India is heavily dependent on imports for supplies of both oil and gas. India also increasingly relies on imported LNG. In 2014, India consumed 3.85 mbpd oil, while the consumption is estimated to reach 4.0 mbpd by FY16, expanding at a CAGR of 3.2 per cent during FY08–16. India also increasingly relies on imported LNG; the country is the 4th largest LNG importer in 2015 (as of September 2015) & accounted for 5.68 per cent of global imports.

Oil and gas exploration policies under NELP were designed to achieve rapid expansion of domestic production with the involvement of private investors. However, the results achieved were disappointing. While there was some increase in crude oil production and a significant expansion of domestic gas output, however domestic production of both oil and gas needed to be significantly improved.