(FE)
With elevated global oil prices, stepping up domestic production must be prioritised at all costs To reduce vulnerability to high and volatile global prices, determined efforts must be made to increase the levels of relative self-sufficiency by stepping up domestic oil and gas production. Unfortunately, this is not happening. Domestic crude production has been steadily declining from 38.1 MMT in 2011-12 to 30.5 MMT in 2020-21. Till October this fiscal, production at 17.4 MMT is virtually unchanged from the levels during the corresponding period in 2020-21, according to the Petroleum Planning & Analysis Cell. Domestic production is falling due to declining output from old and marginal fields. India lacks the technological capability for deepwater exploration. There have also been no major hydrocarbon discoveries of late either. The preferred strategy in recent years is to pick up stakes in foreign oilfields to enhance India’s energy security.
