Lok Sabha Question No. 106 (UNSTARRED), answered on 2023-07-20
Subject: Domestic Oil and Gas Production
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Kirit Premjibhai Solanki

## LOK SABHA UNSTARRED QUESTION NO. 106 TO BE ANSWERED ON 20 th  July, 2023

## Domestic Oil and Gas Production

106. DR. (PROF.) KIRIT PREMJIBHAI SOLANKI:

## पेोिलयम और ाकृितक गैस मंी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether the Government can provide an update on the efforts made by the Government to enhance the domestic oil and gas production, reduce imports and improve energy security and if so, the details thereof;
- (b)  the  measures  taken/being  taken  by  the  Government  to  ensure  the  smooth  transition  to cleaner fuels and promote the use of natural gas in the sectors like transportation, industry and households; and

(c)  whether  any  steps  have  been  taken/being  taken  by  the  Government  to  address  issues related to fuel  pricing, the  impact  of  global crude  oil prices and  to mitigate  the burden on consumers and if so, the details thereof?

## ANSWER

पेोिलयम और ाकृितक गैस मंालय म राय मंी ( ी रामेर तेली )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI RAMESWAR TELI)

(a) The Government has taken various long/short term policy initiatives to increase domestic oil and gas production which inter-alia include:

## 1. Long term Policy initiatives:

- i. Discovered Small Field Policy, 2015.
- ii. Hydrocarbon Exploration and Licensing Policy, 2016.
- iii. Policy for early monetization of Coal Bed Methane 2017
- iv. Setting up of National Data Repository, 2017.
- v. Re-assessment of Hydrocarbon Resources 2017
- vi. Policy  to  Promote  and  Incentivize  Enhanced  Recovery  Methods  for  Oil  and  Gas, 2018.
- vii. Policy framework for Exploration and exploitation of Coal Bed Methane (CBM) from areas  under  Coal  Mining  Lease  allotted  to  Coal  India  Limited  (CIL)  and  its subsidiaries 2018.
- viii. Policy Framework for Exploration and Exploitation of Unconventional Hydrocarbons under Existing Production Contracts and Nomination Fields, 2018.

- ix. Reforms in  Hydrocarbon  Exploration and Licensing Policy for  enhancing  domestic exploration and production of oil and gas 2019.

## 2. Short and medium term initiatives:

- i. Early Monetization of Existing Discoveries.
- ii. Improving Recovery Factor through implementation of Improved Oil Recovery (IOR) and Enhanced Oil Recovery (EOR) techniques.
- iii. Revival of sick wells.
- iv. Renewal of Facilities and other infrastructure.
- v. Monetization of small and marginal discoveries in onshore through service contract and outsourcing.
- vi. Redevelopment of existing matured fields and development of new fields/marginal fields.
- vii. Induction of suitable technologies on selective fields.

Further,  to  reduce  imports  and  improve  energy  security,  the  Government  has  adopted strategy  comprising,  promoting energy efficiency and conservation measures, giving thrust on  demand  substitution,  promoting  biofuels  and  other  alternate  fuels/  renewables,  and refinery process improvements.

(b) Various steps taken by the Government to ensure the smooth transition to cleaner fuels and  promote  the  use  of  natural  gas  include  expansion  of  National  Gas  Grid  Pipeline, expansion  of  City  Gas  Distribution  (CGD)  network,  setting  up  of  Liquefied  Natural  Gas (LNG) Terminals, allocation of domestic gas to Compressed Natural Gas (Transport) / Piped Natural Gas (Domestic) CNG(T)/PNG(D) in no cut category, allowing marketing and pricing freedom to gas produced from high pressure/high temperature areas, deep water & ultra-deep water  and  from  coal  seams,  Sustainable  Alternative  Towards  Affordable  Transportation (SATAT) initiatives to promote Bio-CNG, etc.

(c) Prices of petrol and diesel have been market-determined with effect from 26.06.2010 and 19.10.2014 respectively.  Since  then,  the  Public  Sector  OMCs  take appropriate  decision  on pricing  of  petrol  and  diesel.  Public  Sector  OMCs  have  not  increased  prices  of  petrol  and diesel since 06.04.2022.

The Central Government has reduced Central Excise duty by a total of Rs. 13/ litre and Rs. 16/ litre on petrol and diesel respectively in two tranches in November 2021 and May 2022. The measure was aimed to give a further fillip to the economy and to boost consumption and keep inflation low, thus helping the poor and middle classes. Many States/UTs also reduced the VAT on petrol and diesel subsequently.

*******