Crude oil production falls even as prices remain high

India’s crude oil production declined 0.95 percent from 2.49 million tonnes in April 2021 to 2.46 million tonnes in April 2022 due to “smaller than projected contribution from workover wells, drilling wells, and old wells.”

According to the ministry of petroleum and natural gas. India’s crude oil production declined 0.95 percent from 2.49 million tonnes in April 2021 to 2.46 million tonnes in April 2022. Due to “smaller than projected contribution from workover wells, drilling wells, and old wells”. The ministry stated on Tuesday that production in April was 3.47 percent more than the target of 2.38 million tonne. 30.22 million tonnes is the objective for FY23.

Production was also disrupted by protests and blockades in Assam following the accident at Oil India’s Baghjan oilfield in the state. According to the ministry.

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Crude oil production falls

Crude oil production is falling at a time when crude oil prices are still high due to the Russia-Ukraine situation and global supply concerns.

India has been working to enhance domestic oil output in order to lessen its reliance on imports. Around 85% of the country’s energy needs are met by imports. Last month, state-run Oil India Ltd produced 251,460 tonne crude oil, 0.79 percent less than the month’s objective.

A parliamentary committee on petroleum and natural gas suggested in March. That the government examine its strategy for increasing domestic oil output. And take real, actionable actions in that direction. The committee expressed worry in its report to Parliament about the “extremely modest” contribution of oilfields to crude oil production under the new exploration licencing strategy.

The panel was told by the ministry of petroleum and natural gas that beginning in the financial year 2023, there will be a turnaround in crude production in the country, with production increasing.

Natural gas output grew 6.61 percent year over year to 2.82 billion cubic metres in April 2022. But was 2.29 percent below the monthly target of 2.89 billion cubic metres.

Following a fall in output at the Gandhar, Jambusar, and Dahej fields in Ankleshwar. ONGC produced 1.70 billion cubic metres of natural gas. 0.62 percent better than its objective but 1.01 percent lower than the production in April 2021.

The government added that Oil India generated 244.92 million metric standard cubic metres of natural gas. Which is 19.30 percent less than the monthly target. Owing to lower-than-expected contributions from workover wells, drilling wells, and old wells. However, production in April 2021 was 13.85 percent greater.