(CRI-report) - Given the dimmer world economic picture in 2012 in comparison with last year, total oil demand growth expected to remain the same. Global risks continue to be on the downside of the economic outlook for the remaining of the year, and retail oil prices are in the high side.
Under 11th Plan period, India committed to producing 206.8 mn tonnes of crude oil but actually only produced 176.9 million tonnes or 85.6 percent vis-à-vis the target. India to rely on imports crude oil significantly, which are currently about 80 per cent its total requirements. In the last four years, the import of crude oil has risen to 163.5 million tonnes or 34 per cent. The import bill rose to INR 4559.09 billion or 67 percent in 2010-11.
Slippage in the production targets was primarily due to the shortage of production by the flagship explorer ONGC. The company missed the production targets by 3 percent below the petroleum ministry estimates.
As historic fields are declining, and new finds prove elusive, achieving the domestic crude production target will continue to be an uphill task.
To facilitate greater domestic oil and gas production, both the state and federal governments are offering various tax incentives, reducing bureaucratic red tape, and easing environmental regulations in recent years. The Indian government expects investments expect over USD75 billion to flow into the industry during the period April 2012 to March 2017. It hopes that this will help to cut India's import bill.
An overview the oil and gas sector in India in this report includes an overview of players, size, and development of the sector. It includes infrastructure insights in the sector.
Full report are available: www.cri-report.com/oil-gas/2068-india-oi...