Lok Sabha Question No. 242 (STARRED), answered on 2017-03-20
Subject: Oil Consumption Growth
Ministry: PETROLEUM AND NATURAL GAS
Asked by: R. VANAROJA, LALLU SINGH

## GOVERNMENT OF INDIA MINISTRY OF PETROLEUM AND NATURAL GAS

## LOK SABHA STARRED QUESTION NO.242* TO BE ANSWERED ON 20 TH  MARCH 2017

## OIL CONSUMPTION GROWTH

## *242. SHRIMATI VANAROJA R:

## SHRI LALLU SINGH:

## Will the Minister of PETROLEUM AND NATURAL GAS

be pleased to state:

- (a) whether India's oil and gas consumption growth is fastest among all major economies and likely  to  become  the  most  oil  consuming  country  in  the  world  by  2035,  if  so,  the  details thereof;
- (b) the  share  of  import  of  crude  oil  and  that  of  the  domestic  production  in  total  annual consumption in the country over the last three years and the current year;
- (c) the  concrete  steps  taken  to  reduce  the  dependence  on  import  and  develop  substitute  for petroleum products in the country;
- (d) whether the Government proposes to achieve self-reliance in the production of oil and gas by developing its own resources and if so, the details thereof along with target, if any, set in this regard; and
- (e) the quantum of crude oil and natural gas in terms of rupee produced indigenously and the steps taken to diversify our resources and technology to meet the future demand?

## ANSWER

## MINISTER OF STATE (I/C) IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a) to (e) A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO PART (a) TO (e) OF LOK SABHA STARRED QUESTION NO.242 FOR REPLY ON 20.03.2017

- (a) As per BP Statistical Review of World Energy, 2016, the growth in oil and gas consumption in the major economies over the last year is as follows:

|                    |   Oil (MMT) |   Oil (MMT) | Oil (MMT)                 |   Natural Gas (Mtoe) |   Natural Gas (Mtoe) | Natural Gas (Mtoe)        |   Total (in Mtoe) |   Total (in Mtoe) | Total (in Mtoe)           |
|--------------------|-------------|-------------|---------------------------|----------------------|----------------------|---------------------------|-------------------|-------------------|---------------------------|
| Country            |      2014   |      2015   | %growth in 2015 over 2014 |               2014   |               2015   | %growth in 2015 over 2014 |            2014   |            2015   | %growth in 2015 over 2014 |
| China              |       526.8 |       559.7 | 6.2                       |                169.6 |                177.6 | 4.7                       |             696.4 |             737.3 | 5.9                       |
| USA                |       838.1 |       851.6 | 1.6                       |                692.7 |                713.6 | 3.0                       |            1530.8 |            1565.2 | 2.2                       |
| India              |       180.8 |       195.5 | 8.1                       |                 45.6 |                 45.5 | -0.2                      |             226.4 |             241   | 6.4                       |
| Russian Federation |       150.8 |       143   | -5.2                      |                370.7 |                352.3 | -5.0                      |             521.5 |             495.3 | -5.0                      |
| Japan              |       197.3 |       189.6 | -3.9                      |                106.2 |                102.1 | -3.9                      |             303.5 |             291.7 | -3.9                      |

As per  International  Energy  Agency's  World  Energy  Outlook  2016,  the  demand  of  oil  in  the 'New Policy Scenario' (NPS) in 2035 is projected to be:

| Country            |   Oil Consumption (Mtoe) |   Oil Consumption (Mtoe) | Oil Consumption (Mtoe)   |
|--------------------|--------------------------|--------------------------|--------------------------|
|                    |                     2014 |                     2035 | CAGR#                    |
| China              |                      508 |                      705 | -1.13                    |
| USA                |                      782 |                      616 | 1.57                     |
| India              |                      185 |                      401 | 3.75                     |
| Russian Federation |                      143 |                      138 | -0.17                    |
| Japan              |                      192 |                      109 | -2.66                    |

- (b) The  share  of  import  of  crude  oil  and  that  of  the  domestic  production  in  total  annual consumption in India over the last three years and the current year is as follows:

| Imported crude oil requirement for domestic consumption (Quantity in Million Metric Tonne-MMT)   | Imported crude oil requirement for domestic consumption (Quantity in Million Metric Tonne-MMT)   | Imported crude oil requirement for domestic consumption (Quantity in Million Metric Tonne-MMT)   | Imported crude oil requirement for domestic consumption (Quantity in Million Metric Tonne-MMT)   | Imported crude oil requirement for domestic consumption (Quantity in Million Metric Tonne-MMT)   |
|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|
| Description                                                                                      | 2013-14                                                                                          | 2014-15                                                                                          | 2015-16                                                                                          | 2016-17*                                                                                         |
| Total consumption of petroleum products                                                          | 158.40                                                                                           | 165.50                                                                                           | 184.70                                                                                           | 161.36                                                                                           |
| Crude oil required for total consumption                                                         | 169.77                                                                                           | 177.38                                                                                           | 197.96                                                                                           | 172.94                                                                                           |
| Indigenous petroleum products production                                                         | 35.50                                                                                            | 35.60                                                                                            | 35.20                                                                                            | 29.05                                                                                            |
| Imported Crude oil requirement for balance domestic consumption                                  | 131.73                                                                                           | 139.23                                                                                           | 160.24                                                                                           | 141.81                                                                                           |
| %share of Imported Crude (based on domestic consumption)                                         | 77.6                                                                                             | 78.5                                                                                             | 80.9                                                                                             | 82.0                                                                                             |

(c) & (d) During the Urja Sangam held on 27 th March, 2015, Hon'ble Prime Minister assigned the target of reducing import dependency in energy by 10% by 2021-22. A Committee was constituted for 'Preparing a roadmap to reduce the dependency on import in energy by 10% by 2021-22'. The Committee  has  submitted  its  report  which  envisages  a  five  pronged  strategy  viz.,  (i)  increasing domestic production, (ii) promoting bio fuels and renewables, (iii) promoting energy efficiency and conservation, (iv)  improving refining processes and  (v) demand substitution to achieve the target. The report has been accepted by the Government.

Government  has  taken  several  steps  to  enhance  exploration  &  production  of  oil  and  gas  in  the country  which  include  inter-alia  Discovered  Small  Field  Policy,  National  Seismic  Programme  of unappraised areas, gas pricing reforms, reform initiatives to enhance  domestic production, Hydrocarbon Exploration Licensing Policy (HELP), permission of extraction of Coal Bed Methane (CBM) to  Coal  India  Limited  and  its  subsidiaries  in  coal  mining  areas,  Hydrocarbon  Vision  for North East, National Data Repository (NDR) and Gas hydrates.

(e)   The quantum and value of indigenous production crude oil and natural gas during 2016-17 in Rupee terms is as under:

| Items             |   Quantity * |   Value (in Rs. Crore) |
|-------------------|--------------|------------------------|
| Crude Oil (MMT)   |        35.89 |                  83503 |
| Natural Gas (BCM) |        31.77 |                  23729 |

The  steps  taken/being  taken  towards  diversification  of  resources  and  technology  include Discovered  Small  Field  Policy,  Hydrocarbon  Exploration  Licensing  Policy  (HELP)  including Open Acreage Licensing Policy (OALP) to help monetization of locked up reserves , exploration and  production  of  unconventional  hydrocarbon  resources  in  the  country  such  as  CBM,  shale oil/gas & gas hydrates and assimilation of related technologies involved.

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