Parliamentary Committee Slams Oil Production Decline, Demands Faster Reserve Expansion

A parliamentary committee has urged the Indian government to boost domestic oil production and expand strategic reserves faster despite increasing capital expenditure in the petroleum sector.

The Committee on Public Undertakings said that while capex by petroleum sector central public sector undertakings (CPSUs) is rising from Rs 1.33 lakh crore in 2020-21 to a projected Rs 1.70 lakh crore in 2024-25, domestic crude oil production has declined from 34.2 million metric tonnes (MMT) in 2018-19 to a projected 28.7 MMT in 2024-25.

The committee asked the government to ensure that investments in exploration and production result in measurable production gains and periodically assess whether investments are reversing the decline in domestic crude output.