New Delhi, April 03: New Delhi: Ministry of Petroleum and Natural Gas has set a target to increase domestic crude oil production to 35 million metric tonnes (MMT) by 2030, up from the current 29 MMT, as part of efforts to reduce import dependence and meet rising energy demand.
In a written reply to the Lok Sabha, Petroleum Minister Hardeep Singh Puri outlined a series of policy and regulatory measures aimed at boosting exploration and production activity across the country.
Policy Push to Boost Exploration
Key initiatives include reforms under the Production Sharing Contract (PSC) regime for early monetisation of discoveries, alongside the implementation of the Hydrocarbon Exploration and Licensing Policy (HELP) and the Discovered Small Field (DSF) Policy. The government has also extended PSCs to sustain production from existing blocks.
A major structural reform involves opening up nearly 1 million sq km of previously restricted ‘no-go’ offshore areas for exploration, unlocking significant untapped hydrocarbon potential.
Data and Investment Support
To enhance investor participation, the government is investing around ₹7,500 crore in acquiring high-quality seismic data and drilling stratigraphic wells across onshore and offshore basins. Additionally, fresh approvals have been granted for acquiring 20,000 line kilometres (LKM) of 2D seismic data on land and 30,000 LKM beyond India’s Exclusive Economic Zone (EEZ).
Diversification Towards Alternative Fuels
Alongside boosting domestic production, the government is promoting alternative fuels such as CNG, PNG, compressed biogas (CBG), and ethanol-blended petrol under programmes like the Ethanol Blended Petrol (EBP) initiative and the SATAT scheme, aimed at reducing reliance on fossil fuels.
High Import Dependence Persists
Despite these efforts, India’s crude oil import dependence has remained elevated at around 88 per cent over the past three years, according to data from Petroleum Planning and Analysis Cell. This is largely driven by sustained economic growth, urbanisation, and rising demand from transport, petrochemicals, and industrial sectors.
Rising Energy Demand Outlook
According to projections by the International Energy Agency, India is expected to account for 20–30 per cent of incremental global energy demand growth by 2050. The country’s oil demand is projected to rise from around 5.5 million barrels per day (mb/d) currently to between 8.5 and 10.5 mb/d over the same period.
The government’s strategy reflects a dual approach of enhancing domestic production while accelerating the transition to cleaner fuels, aimed at ensuring long-term energy security amid rising consumption trends.
