Crude oil production, imports, consumption fall during April-Nov 2020

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Domestic crude oil production has fallen by 6% during 8M-FY21 compared with the 5.9% de-growth achieved during 8M-FY20. Technical mishaps due to COVID-19 implications, reservoir issues and shut in of wells and reduced off take have led to the fall in production.

SHIVANI SHARMA, PRAGATI SRIVASTAVA

India imported 3.7 mb/d of crude oil during 8M-FY21 compared with the 4.5 mb/d imported during 8M-FY20. Cumulatively, imports of crude oil have fallen due to the fall in the demand of petro-products. Import dependency of crude (on the basis of consumption) has declined to 83.5% during 8M-FY21 from being 84.8% during the same period in the previous corresponding year.

The continued spread of the coronavirus pandemic and resurgence of cases has led to a sharp fall in consumption of petro-products, thus affecting the demand prospects of oil. Consumption of crude oil is expected to fall more during FY21 as processing of crude oil undertaken by refiners isn't robust given the demand for petro-products is still subdued in the domestic and global economy.

India ranks 4th in terms of refining capacity in the world right after US, China and Russia and hosts 23 refineries: 20 belonging to the public sector and three in the private sector. The public sector accounts for 65% of the total refining capacity whereas the private sector accounts for the remaining 35%.

Pipeline transportation offers a safe, economic and environmentally sound alternative to most other modes of energy transport. These pipelines are used to transport crude oil to the refineries.