Domestic crude oil production remained steady at 2.4 MMT in June: Oil Ministry

Domestic crude oil production remained steady at 2.4 MMT in June

Domestic crude oil production remained steady at 2.4 million metric tonne (MMT) in June as compared to the previous year, showed data released by the Oil Ministry on July 20.

According to Petroleum Planning & Analysis Cell (PPAC), Oil and Natural Gas Corporation (ONGC) produced 1.59 MMT, Oil India Limited (OIL) and private sector producers produced 0.27 MMT and 0.56 MMT respectively in June.

This comes as Indian government is pushing for increasing domestic production of crude oil and natural gas to reduce the country’s reliance on imports.

Meanwhile, India’s imports of crude oil increased by 0.6 percent during June as compared to the corresponding period of the previous year.

The Indian basket crude price averaged $74.93 per barrel during June 2023 as against $74.98 per barrel during May 2023 and $116.01 per barrel during June 2022.

Crude oil prices have declined and are hovering around $80 per barrel recently from the highs of $100 per barrel recorded in the first half of 2022. Crude prices climbed to $140 per barrel in March 2022 amid geopolitical tensions.

In June, domestic natural gas consumption (including internal consumption) stood at 5066 MMSCM (million metric standard cubic metre) which was 1.2 percent higher than the corresponding month of the previous year.

For the current financial year till June 2023, the cumulative natural gas consumption was at 15943 MMSCM—2.1 percent higher from the last year.

Domestic production of natural gas also witnessed an increase of 3.4 percent in June as compared to the previous year. Natural gas production stood at 2910 MMSCM in the month.

LNG import for the month of June 2023 (P) was 2221 MMSCM which was 1.6% lower than the corresponding month of the previous year.

India is dependent on imports to meet over 85 percent of its crude oil needs and around 50 percent of its natural gas requirements.