India’s energy landscape is rapidly evolving, boasting 651.8 million metrictons of recoverable crude oil reserves and 1,138.6 billion cubic meters ofrecoverable natural gas reserves within its sedimentary basins.
Energy today has become the spinal cord for economic growth and development,
said Hardeep Singh Puri, Minister of Petroleum and Natural Gas, during the
inaugural ceremony of GEO India 2024, India’s premier South Asian Geosciences
Conference and Exhibition in Greater Noida. He said that energy was of critical
importance in driving economic progress, especially in a country like India, where
the energy demand was increasing rapidly in line with its growing economy.
With India’s fuel demand growing at three times the global average, 67 million
people visit petrol pumps every day in India. This surging demand is expected to
drive a quarter of the global increase in energy consumption over the next two
decades. “Balancing the trilemma of availability, affordability, and sustainability is
not only a priority but a commitment that we are meeting head-on with a focus on
exploration, production, and energy security,” he said.
India’s energy landscape is rapidly evolving, boasting 651.8 million metric tons of
recoverable crude oil reserves and 1,138.6 billion cubic meters of recoverable
natural gas reserves within its sedimentary basins. Despite these abundant
resources, much of India’s exploration potential remains untapped. When the
incumbent government took office in 2014, only six per cent of India’s
sedimentary basins had been explored. Today, this figure has risen to 10 per cent
and with further exploration activity under the Open Acreage Licensing Policy
(OALP) rounds, this is set to increase to 16 per cent by 2025. By 2030, the
government aims to expand the nation’s exploration acreage to one million square
kilometres, further bolstering India’s energy security.
Key reforms implemented by the government include simplifying the approval
process for exploration and production activities, reducing 37 approval processes
to just 18, of which nine are now available for self-certification. Additionally, the
introduction of the Oilfields (Regulation and Development) Amendment Bill in
2024 ensures policy stability for oil and gas producers, allows for international
arbitration, and extends lease periods. Furthermore, the government has reduced
“No-Go” areas in the Exclusive Economic Zone (EEZ) by almost 99 per cent,
opening up vast new areas for exploration.
The shift from the previous regime’s Production Sharing Contracts (PSCs) to the
new Revenue Sharing Contracts (RSCs) provides greater clarity and predictability
for investors. The establishment of a Joint Working Group (JWG) comprising
stakeholders from private E&P companies, National Oil Companies, the Ministry
of Petroleum and Natural Gas (MoPNG), and the Directorate General of
Hydrocarbons (DGH) address the concerns of the industry and improve the ease of
doing business.
The government has made significant strides in facilitating data availability
through initiatives like the National Seismic Programme (NSP) for onshore areas,
EEZ surveys for offshore areas, and the opening up of previously unexplored
regions such as the Andaman Basin. The government is also making data more
accessible to international companies by setting up a new data centre at the
University of Houston, enabling foreign firms to view critical geological data with
ease.
The recent Open Acreage Licensing Policy (OALP) bidding round IX marked a
historic milestone, with 136,596 square kilometres of exploration area offered in
28 blocks across 8 sedimentary basins. Notably, 38 per cent of the areas allocated
in this round had previously been classified as “No-Go” areas. The round saw a
strong response, with 60 bids received for the 28 blocks, reflecting heightened
interest from both Indian and foreign companies. The average number of bids per
block increased to 2.4, compared to just 1.3 per block in the previous round.
With projects focused on hydrogen blending in natural gas pipelines, the
localization of electrolyser technologies, and the promotion of bio-pathways for
green hydrogen production, India is positioning itself as a future global leader in
green hydrogen production and exports. Green hydrogen is seen as the future fuel
and India is committed to becoming a global hub for its production.
