India’s crude oil production and natural gas output declined in FY20-21, according to latest government data. Crude oil production declined by 5.2 percent as private and public firms produced 30.5 million tonnes this fiscal compared to 32.17 million tonnes produced during the same period last year.
Natural gas production declined by 8.1 percent and this year only 28.67 billion cubic meters was produced compared to 31.18 billion cubic meters last year.
India’s oil and natural gas production have been consistently falling since the last decade though oil companies have claimed that the recent decline is due to COVID-19 related restrictions.
However, reports suggest that the main reason for the slump in production is due to ageing fields, which are becoming less productive with time.
Indian Express quoted industry sources as saying that there are no more ‘easily extractable oil and natural gas’ fields and the producers are being forced to deploy technology intensive methods in extracting oil and gas from more difficult fields such as ultra-deep-water. Moreover, producers are hesitant in investing capital in intensive technology.