The unrefined truth about India's crude output decline
- The burden of producing the bulk of India’s crude output falls on the shoulders of ONGC. Over the years, ONGC has become a less efficient explorer and developer of hydrocarbons and more cash cow guided to make acquisitions, not all of which make economic sense
India’s crude oil output was at a 28-year low, at 28.4 million tonnes in the financial year 2021-22, reported Business Standard. Crude output has been falling continuously, month after month, for the past four years, with just one month registering a marginal increase. At the same time, India’s demand has been growing robustly, resulting in a steady rise in imports, which touched 212 million tonnes in FY22. India is the world’s third-largest importer of crude, behind only China and the US. The question is, can India increase its own domestic output, or will it be dependent on imported energy, like Japan?