Lok Sabha Question No. 2524 (UNSTARRED), answered on 2016-08-01
Subject: New Petroleum Policy
Ministry: PETROLEUM AND NATURAL GAS
Asked by: GAJANAN CHANDRAKANT KIRTIKAR, RAVINDRA VISHWANATH GAIKWAD, K. GOPAL, RAHUL RAMESH SHEWALE, SUNIL BALIRAM GAIKWAD, K. MARAGATHAM, SUDHEER GUPTA, ELUMALAI VELLAIGOUNDER, KUNWAR HARIBANSH SINGH, HEENA VIJAYKUMAR GAVIT, SUPRIYA SADANAND SULE, M. UDHAYAKUMAR, GOPAL CHINAYYA SHETTY

## New Petroleum Policy

## 2524.  SHRI GAJANAN KIRTIKAR:

PROF. RAVINDRA VISHWANATH GAIKWAD:

DR. K. GOPAL: SHRI RAHUL SHEWALE: DR. SUNIL BALIRAM GAIKWAD: SHRIMATI K. MARAGATHAM: SHRI SUDHEER GUPTA: SHRI V. ELUMALAI: KUNWAR HARIBANSH SINGH: DR. HEENA VIJAYKUMAR GAVIT: SHRIMATI SUPRIYA SULE: ADV. M. UDHAYAKUMAR: SHRI GOPAL SHETTY:

## पेट्रोलियम और प्राकर्तिक गैस मंत्री

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

(a) whether the domestically produced crude oils cheaper than the imported crude oil and if so, the details thereof;

(b)  whether  there  is  increase/decrease  in  import  of  crude  oil  during  the  last  three years and the current year if so, the details thereof along with the likely impact on foreign exchange reserves of the country;

(c)  whether  the  Government  has  set  a  target  of  reducing  crude  oil  imports  by  10 percentage  points  to  66  per  cent  of  the  total  requirement  by  2022  and  if  so,  the details  thereof  along  with  steps  taken  to  increase  domestic  resources  in  order  to become self-reliant in the production of oil and gas;

(d) whether the consumption of oil and gas is likely to grow three folds by 2040 and if so, the details thereof along with the concrete steps taken to diversify our sources and technology to meet the demand in future; and

(e)  whether the Government proposes to launch domestic/international roadshows to promote and monetise un-remunerative/ surrendered small oil and gas blocks i.e., discovered  small  fields  by  upstream  companies  such  as  ONGC  and  Oil  India Limited, and if so, the details thereof?

## पेट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज ् य मंत्री ( स ् विंत्र प्रभार ) ( श्री धमेन ् द्र प्रधान )

MINISTER OF STATE (INDEPENDENT  CHARGE)  IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a):  The  price  of  crude  is  based  on  its  properties  and  gross  product  value.  The domestic  prices  of  crude  oil  are  benchmarked  to  their  respective  marker  crude traded in the international market.
- (b): The details of crude oil imported and its value in terms of rupee and dollar during the last three years and the current year and is given in Annexure-I.   The decline in value of crude oil import is favourably impacting foreign exchange outflow.
- (c):  During  the  Urja  Sangam  held  on  27.03.2015  at  New  Delhi,  Hon'ble  Prime Minister said that the current import was around 77 % in energy sector, in oil, gas and petroleum sector which could be reduced at least 10 % by 2022. In order to take this  vision  forward,  a  Committee  was  constituted  by  Ministry  of  Petroleum  and Natural Gas on 'Preparing a Roadmap to reduce dependency on import in energy by 10% by 2021-22.' The  Committee has  submitted  its  Report  in  April,  2016  and  its recommendations have been accepted by the Government.  To achieve this goal, the Committee has proposed the following strategy for reducing import dependency:-
- i. Increasing production of oil & gas;
- ii. Promoting energy efficiency and conservation measures;
- iii. Giving thrust on demand substitution;
- iv. Capitalizing untapped potential in biofuels and other alternate fuels/renewable; and
- v. Implementing measures for refinery process improvements.
- (d):      As  per  International  Energy  Agency's  (IEA) World Energy  Outlook 2015 and India Energy Outlook 2015, the projected demand of oil and natural gas by 2040 in India  under  Current  Policies  Scenario  would  be  505  &  143  Million  Tonnes  of  oil equivalent respectively.

As regards diversification of sources and technology to meet the demand in future, in addition to the strategy mentioned in part (c) above, the  Public Sector Oil Companies have made significant efforts to diversify their source of crude oil over last few years.

- (e):  The  Government  has  held  domestic  Road  shows  in  Delhi,  Mumbai  and Guwahati  and  International  Road  shows  at  Houston  in  USA  and  at  Calgary  in Canada to attract investments in the discovered small fields being auctioned under the discover small field bid round 2016.

*****

## Annexure-I

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  LOK  SABHA  UNSTARRED QUESTION NO. 2524 BY SHRI GAJANAN KIRTIKAR,  PROF. RAVINDRA VISHWANATH GAIKWAD, DR. K. GOPAL, SHRI RAHUL SHEWALE,  DR. SUNIL BALIRAM GAIKWAD, SHRIMATI K. MARAGATHAM,  SHRI SUDHEER GUPTA,  SHRI V. ELUMALAI,  KUNWAR HARIBANSH  SINGH,    DR.  HEENA  VIJAYKUMAR  GAVIT,    SHRIMATI  SUPRIYA  SULE, ADV.  M.  UDHAYAKUMAR  AND    SHRI  GOPAL  SHETTY  TO  BE  ANSWERED  ON 01.08.2016 'REGARDING 'NEW PETROLEUM POLICY'.

| Crude Oil Import during 2013-14 to 2016-17 (April-June) (P)   | Crude Oil Import during 2013-14 to 2016-17 (April-June) (P)   | Crude Oil Import during 2013-14 to 2016-17 (April-June) (P)   | Crude Oil Import during 2013-14 to 2016-17 (April-June) (P)   |
|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|
|                                                               | Quantity                                                      | Value                                                         | Value                                                         |
| Year                                                          | MMT                                                           | $ Billion                                                     | Rs. Crore                                                     |
| 2013-14                                                       | 189.2                                                         | 143.0                                                         | 864875                                                        |
| 2014-15                                                       | 189.4                                                         | 112.7                                                         | 687416                                                        |
| 2015-16 (P)                                                   | 202.9                                                         | 64.0                                                          | 416361                                                        |
| 2016-17 ( April-June) (P)                                     | 53.2                                                          | 15.8                                                          | 105624                                                        |

Source: Petroleum Planning & Analysis Cell.

P: Provisional