Hydrocarbon sector inextricably linked to nations progress

Energy sector is a key enabler for wider economic development. And with hydrocarbons dominating the world energy scene, India's growth is inextricably linked to its exploration and production capability.

In the last 50 years, the oil and gas sector has taken massive steps to meet the growing energy needs of the Indian economy. However, despite increased exploration and production activities by both national and private companies, India imports nearly 80 per cent of its oil today. Its crude oil import bill was USD 144 billion last fiscal.

Exploration and production of oil and gas is critical for India's energy security and economic growth. India has an estimated sedimentary area of 3.14 million square kilometers, comprising 26 sedimentary basins, out of which 1.35 million square kilometers area is in deep water and 1.79 million square kilometers area is onland and shallow offshore.

According to the Petroleum Ministry, out of 205 billion barrels of prognosticated hydrocarbon resources, until now, only 73 billion barrels of oil and oil equivalent gas could be established through exploration.

The country aims to reduce its imports by 50 per cent by 2020, 75 per cent by 2025, and eventually achieve self-sufficiency by 2030.

To reduce imports, India needs to take up aggressive exploration. The liberalisation of the Indian economy and recent initiatives in oil and gas exploration, natural gas and infrastructure have resulted in massive opportunities for the private players in high growth areas. The New Exploration Licensing Policy (NELP) has made a significant impact to the upstream hydrocarbon industry.

Plans are also afoot to set up a National Data Repository for India. The proposed NDR will safeguard national E&P data asset, enhance prospects of petroleum exploration and help promote production activities. It will enable India compete effectively in the hydrocarbon exploration and production sector. The Directorate General of Hydrocarbons (DGH) now looks forwar d to Open Acreage' approach with OALP.

Over the next two decades, the global energy consumption growth will average at around 1.7 per cent annum. Of this, non-OECD energy consumption is expected to be 68 per cent higher by 2030

Rising demands for hydrocarbon resources and depleting resources from onshore and shallow water segments has put a thrust on E&P activities in the deep water development. India, which has over 1.35 million sq.km of deep water sedimentary basins, is looking for innovative technology to promote the E&P activities in this sector.

However, there are specific challenges and uncertainty which needs to be managed safely and in a cost-effective manner throughout the life cycle. Challenges like high costs and infrastructure in deep water environment and devising an optimum development strategy are among the crucial factors here.