Global rankings

Facts

22nd in oil production - 0.8% global output

India is not a major oil producer, ranking only 22nd in global oil production in 2022 with a 0.8% share of global output. #Energyfacts

Imports of India

India today imports 80% of its oil and 50% of its natural gas needs.

3rd largest oil consumer

The third largest oil consumer in the world, with imports making up 88.3% of its total consumption of fuels in in the first quarter of 2023-24, up from 87.4% in FY2022-23 . #Energyfacts

International Energy Agency (IEA) in February 2024, assessed that India will become the largest source of global oil demand growth between 2024 and 2030. #Energyfacts

2nd largest in bio fuel blending, next to Brazil

India is the second largest economy in bio fuel blending, following Brazil. #Energyfacts

7th largest exporter of refined petroleum products

India is the seventh largest exporter of refined petroleum products. #Energyfacts

4th largest oil refiner

India is also the fourth largest oil refiner in the world and the largest exporter of refined oil in Asia, but with its oil demand slated to increase by almost 50% in 2030,  it is likely to place pressure on future oil exports. #Energyfacts

Bharat - Iran

Iran was India’s third largest supplier of mineral fuels in 2018, providing imports of US$ 13.3 billion, but due to sanctions on the country, India had to cut down imports to about US$ 42 million in 2021. #Energyfacts

Employment in India

In India the employment in oil and gas public sector enterprises declined from 1.10 lakhs in 2017 to 0.95 lakhs in 2022, despite higher production (Ministry of Petroleum and Natural Gas, 2022). #Energyfacts

ONGC Videsh expands across 15 countries

The state-run ONGC Videsh, which has 32 oil and gas projects in 15 countries, has seen a decline in production from its fields (ONGC Videsh, 2023) #Energyfacts

Considering expanding markets

India may consider expanding its markets to some of the top importing countries of petroleum, including Singapore, Mexico, Malaysia, and European countries such as the United Kingdom, France and Belgium. #Energyfacts Ideas for India

3.5 mn sq.km of sedimentary basin

India has about 3.5 million square kilometres of sedimentary basin, but it was never explored beyond eight per cent area, keeping a large expanse of sea beds untapped and unexplored.

India's top 10 oil import sources

India's top 10 oil export destinations

January 2024

New oil discovery in Krishna Godavari basin

Karnataka: Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri announces new oil discovery in the country.

He says, "30 kilometres off the coast of Kakinada in the Krishna Godavari Basin, the first oil was extracted yesterday. Work started on this in 2016-17, then there were some delays due to COVID, but I'm sure that out of the 26 wells there, 4 wells are already operational. We will not only have gas also in a very short period but by May and June, we hope to be able to produce 45,000 barrels per day, which will be 7 per cent of our total crude oil production and 7 per cent of our gas production…"

2 natural gas reserved discovered in Mahanadi basin

ONGC has discovered two significant natural gas reserves in the Mahanadi basin block in the Bay of Bengal

India's Petroleum sector: Growth and Innovation

It is a comprehensive sector encompassing exploration, production, refining, distribution and marketing of petroleum and its by products.

Types of process:

1. Upstream - extraction of crude oil and natural gas
2. Midstream - transportation and storage
3. Downstream - refining and distribution of petrol, diesel, LPG, kerosene

At present, 2025 - India has 19 PSU refineries, 1 Joint venture refinery. #Energyfacts

The current refining capacity of the country stands at 256.816 Million metric tons per annum (MMTPA) in April 2024.

History behind the petroleum industry in India

First oil well drilled in Digboi, Assam in 1867. Then Indian Oil Corporation was established in 1959.

The policy of government like National Exploration Licensing Policy (NELP) incentivised exploration activities.

Targets

To increase exploration acreage to 1 million sq km by 2030, with a 16% increase in 2025.

The price of a domestic LPG cylinder in India is among the lowest worldwide, with costs as low as Rs. 803 per 14.2 Kg cylinder. For PMUY households, after a targeted subsidy of Rs 300 per cylinder, the effective price is Rs 503 per cylinder.

The approval process for exploration and production activities in the petroleum industry has now been simplified, reducing 37 approval processes to just 18, of which nine are now available for self-certification.

Introducing the Oilfields (Regulation and Development) Amendment Bill in 2024 ensures policy stability for oil and gas producers, and enables single license for all hydrocarbons. This bill was recently passed by the Rajya Sabha on December 3, 2024.

Government Initiatives

1. Pradhan Mantri JI-VAN yojana - supporting bio ethanol projects as second generation and third generation plans for sustainable fuel production.
2. Strategic petroleum reserves (SPR) - 3 underground facilities in Vishakapatnam, Mangalore, Padur (Karnataka) with a total capacity of 5.33 million metric tonnes, managed by Indian Strategic Petroleum Reserve Limited (ISPRL)
3. Ethanol Blending program - Target is to achieve 20% ethanol blending of petrol by 2025 - 2026.
4. City Gas Distribution Network Expansion - covering 733 districts in 34 states and UTs.

Moving towards Greener Fuels

SATAT Initiative (Sustainable Alternative Towards Affordable Transportation): The SATAT initiative invites potential investors to set up Compressed Biogas (CBG) production plants. The aim is to make better use of agricultural residue, cattle dung, and municipal solid waste, and provide farmers with an additional source of revenue.

Mission Green Hydrogen - According to the Ministry of New and Renewable Energy, a global demand of over 100 MMT of Green Hydrogen and its derivatives like Green Ammonia is expected to emerge by 2030. Aiming at about 10% of the global market, India can potentially export about 10 MMT Green Hydrogen/Green Ammonia per annum. The production capacity targeted by 2030 is likely to leverage over 8 lakh crore ₹in total investments and create over 6 lakh jobs. Nearly 50 MMT per annum of CO2 emissions are expected to be averted as a result of the various Green Hydrogen initiatives under the Mission. Target is expected to contribute to India’s energy security and reduce a cumulative 1 lakh crore worth of fossil fuel imports by 2030.

National Bio Energy Programme is focused on bio energy production and reducing waste.

Hydrocarbon Exploration and Licensing Policy (HELP) to encourage private investment in exploration and production. Current updates - Doc

March 2025

New oil deposits in Arabian sea

India has discovered new oil deposits in Arabian Sea near the Konkan region, Maharashtra.

New oil deposits discovered in Ballia, UP

• Huge crude oil deposits have been discovered in Ballia district of Uttar Pradesh and ONGC has initiated exploration efforts.
• ONGC has confirmed the presence of oil reserves at a depth of 3,000 meters near Sagarpali village after a three-month survey in the Ganga basin.
  

April 2025

The parliament passes the Oilfields (regulation and development) Amendment bill, 2025.

July 2025

India announced its biggest Open Acreage Licensing Programme (OALP-X) to expand domestic oil and gas exploration

• India’s Petroleum Ministry invited feedback and suggestions on the Draft Petroleum and Natural Gas Rules, the Model Revenue Sharing Contract (MRSC), and the Petroleum Lease legislation until July 17, 2025.
• The country depends on imports for more than 85% of its daily oil consumption. #Energyfacts
• India imported 88.2% of the crude it consumed in the April 2024-February 2025 period. #Energyfacts
• The import dependence increased from 87.7% in the same period of the 2023/2024 fiscal year. #Energyfacts
• India last year surpassed China as the world’s largest oil demand driver. #Energyfacts
• India, the world’s third-largest crude oil importer #Energyfacts oil price

100 billion investment opportunity in oil and gas exploration

November 2025

Oil India commences offshore drilling in Kerala-Konkan basin

This frontier Category-III basin holds immense potential, and the planned 6000 m deep well to be drilled 20 nautical miles offshore will be among the deepest offshore wells in Indian waters. Economic Times