As India is likely to become world's third largest energy consumer by 2020, Prime Minister Manmohan Singh asserted that adequate energy supply at affordable price is critical for economic growth. Stating that India is configuring its policy framework to get back to the high growth rate trajectory, Manmohan Singh added that India seeks clean and affordable energy and the development of energy sector and oil and gas exploration space must be given particular attention.
Manmohan further stated that there is a need to bridge the ever-increasing gap between demand and domestic supply, thus the government is encouraging domestic and global companies to explore potentially hydrocarbon-rich areas in the framework of a stable and enabling policy environment. Currently, India imports around 80 percent of its oil needs and half of its gas requirement. Under the 10th round of NELP, the government has planned to auction 46 oil and gas blocks to domestic as well as overseas oil companies.
Referring to domestic oil and gas production, Prime Minister added that India is currently world's seventh largest energy producer accounting for around 2.5 percent of world's total annual energy production. While, there is a need to increase its energy supply by 3 to 4 times over the next two decades. However, the government has prepared the roadmap to achieve energy security and a number of changes in energy policy regime have been made in the last few months, he added.
Highlighting need of new technologies and processes, innovative thinking and creative business models for oil and gas industry, Manmohan Singh said that the government is also making partnerships with global giants to source technology and produce oil and gas from difficult fields. Presently, only 0.93 million sq km area in India is held under exploration and production in 19 basins as compared to total estimated sedimentary area of 3.14 million square kilometers, comprising 26 sedimentary basins. Meanwhile, the government has formulated a roadmap for cutting India's dependence on imports to meet its energy needs. The Ministry wants domestic crude oil demand to be cut to 50 percent by 2020 and by 25 percent in 2025 through intensive exploration and exploitation of untapped reserves.
Manmohan further stated that there is a need to bridge the ever-increasing gap between demand and domestic supply, thus the government is encouraging domestic and global companies to explore potentially hydrocarbon-rich areas in the framework of a stable and enabling policy environment. Currently, India imports around 80 percent of its oil needs and half of its gas requirement. Under the 10th round of NELP, the government has planned to auction 46 oil and gas blocks to domestic as well as overseas oil companies.
Referring to domestic oil and gas production, Prime Minister added that India is currently world's seventh largest energy producer accounting for around 2.5 percent of world's total annual energy production. While, there is a need to increase its energy supply by 3 to 4 times over the next two decades. However, the government has prepared the roadmap to achieve energy security and a number of changes in energy policy regime have been made in the last few months, he added.
Highlighting need of new technologies and processes, innovative thinking and creative business models for oil and gas industry, Manmohan Singh said that the government is also making partnerships with global giants to source technology and produce oil and gas from difficult fields. Presently, only 0.93 million sq km area in India is held under exploration and production in 19 basins as compared to total estimated sedimentary area of 3.14 million square kilometers, comprising 26 sedimentary basins. Meanwhile, the government has formulated a roadmap for cutting India's dependence on imports to meet its energy needs. The Ministry wants domestic crude oil demand to be cut to 50 percent by 2020 and by 25 percent in 2025 through intensive exploration and exploitation of untapped reserves.
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