Oil and gas industry in India

The petroleum industry in India dates back to 1889 when the first oil deposits in the country were discovered near the town of Digboi in the state of Assam. The natural gas industry in India began in the 1960s with the discovery of gas fields in Assam and Maharashtra (Mumbai High Field). As on 31 March 2018, India had estimated crude oil reserves of 594.49 million metric tonnes (Mt) and natural gas reserves of 1339.57 billion cubic metres of natural gas (BCM).

India imports 82% of its oil needs and aims to bring that down to 67% by 2022 by replacing it with local hydrocarbon exploration, renewable energy and indigenous ethanol fuel. India was the second top net crude oil (including crude oil products) importer of 205.3 Mt in 2019.

By March 2021, India's domestic crude oil production output fell by 5.2% and natural gas production by 8.1% in the FY21 as producers extracted 30.4917 Mt of crude oil and 28.67 BCM of natural gas in the fiscal year. In August 2021, crude oil production decreased by 2.3%, but there was a 20.23% increase in homegrown natural gas.

India offers US$ 12 per MMBTU whereas natural gas exploration and production cost is capped at $3 in many markets. Oil recovery is still only 30–35 per cent in India whereas state of the art technology can double it.

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