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Hydrocarbonvision PDF
Hydrocarbonvision PDF
HYDROCARBON VISION
-2025
consumption of hydrocarbon in terms
INTRODUCTION of kilograms of oil equivalent. Viewed
from all angles, therefore, the
The hydrocarbons sector plays vital hydrocarbon sector is most crucial for
role in the economic growth of the determining the energy, security for the
country. It is necessary to have a Iong- country.
term policy for the hydrocarbons
sector, which would facilitate meeting 1.2 The presence of the Public Sector
the future needs of the country. The Undertakings (PSUs) in exploration,
Hydrocarbons Vision - 2025 lays down production and marketing of petroleum
the framework which would guide the products has been pre-dominant in the
policies relating to the hydrocarbons last four decades. The oil sector PSUs
sector for the next 25 years. Issues such stand out in performance both in terms
as energy security, use of alternative of operational efficiencies and
fuels, interchangeability of technology profitability amongst all the PSUs in
are vital to ensure that the mix of India. This pre-eminence of the PSUs
energy sources used in the economy is in the oil sector is a matter of pride.
optimal and sustainable and that
adequate quantities of economically 1.3 The Vision. 2025 for the
priced clean and green fuels are made hydrocarbon sector has been prepared
available to the Indian consumers. The taking into account the above
estimated energy supply mix in India background. The action required to be
for a period up to 2025 is given at taken in the medium term (3 to 5 years)
Annexure-I. Oil and gas continue to and in the long term (beyond 5 years)
play a pre-eminent role in meeting the to realise the Vision has also been
energy requirements of the country brought out in this Report.
45% of the total energy needs would be
met by the oil and gas sector, though 2. Hydrocarbons Vision - 2025
some amount of interchange between
oil and gas is foreseen. *To assure energy security by
achieving self-reliance through
1.1 The current levels of per capita increased indigenous production and
energy consumption in India are investment in equity oil abroad.
extremely low as compare to the rest of
the world. In terms of comparison with *To enhance quality of life by
the developed countries, the progressively improving product
differentials are even more marked. standards to ensure a cleaner and
The comparative figures of per capita greener India. .
energy consumption for India and rest
of the world are in Annexure-II. *. To develop hydrocarbon sector as a
Growth of the economy would lead globally competitive industry which
automatically to growth in energy could be benchmarked against the best
consumption, as there is a direct in the world through technology
correlation between the GDP and upgradation and capacity building in all
energy consumption. The per capita facets of the industry.
consumption of primary energy and
hydrocarbons (Annexure-III) reveals
that India is amongst the lowest in
* To have a free market and promote ii) Aggressively pursue extensive
healthy competition among players and exploration in non-producing and
improve the customer service. frontier basins for knowledge building'
and new discoveries, including in deep-
* To. ensure oil security for the country sea offshore areas.
keeping in view strategic and defence iii) Finalise a programme for appraisal
considerations. . of the Indian sedimentary basins to the
extent of 25% by 2005, 50% by 2010,
3. Exploration and Production Sector 75% by 2015 and 100% by 2025.
Sufficient resources to be made
The gap between supply and available for appraising the
availability of crude oil, petroleum unexplored/party explored acreages
products as well as gas from through Oil industry Development
indigenous sources is likely to increase Board (OIDB) cess and other
over the years (Annexure-IV). The innovative resource mobilisation
growing demand and supply gap would approaches including disinvestment
require increasing emphasis to be given and privatisation.
to the exploration and production iv) Provide internationally competitive
sector. The objectives of the fiscal terms, keeping in view the
exploration policy would be as relative prospectivity perception of
follows:- Indian basins, in order to attract major
oil and gas companies and through
3.1 Objectives expeditious evaluation of bids and
award of contracts on a time bound
a) To undertake a total appraisal of basis.
Indian sedimentary basins for tapping v) Optimise recovery from discovered/
the hydrocarbon potential and to future fields.
optimise production of crude oil and vi) Improve archival practices for data
natural gas in the most efficient manner management .
so as to have Reserve Replacement vii) Continue technology acquisition
Ratio of more than 1. and absorption along with development
of indigenous Research &
b) To keep pace with technological Development (R&D).
advancement and application and be at viii) Ensure adequacy of finances for
the technological forefront in the global R&D required for building knowledge
exploration and production industry. infrastructure.
ix) Make Exploration and Production.
c) To achieve as near as zero impact, as (E&P) operations compatible with the
possible, on environment. environment and reduce discharges and
emissions.
3.2 To achieve the above objectives x) Support R&D efforts to reduce
the following actions are required to be adverse impact on environment.
taken. xi) Acquire acreages abroad for
exploration as well as production.
3.3 Medium term
3.4 Long term
i) Continue exploration in producing
basins.
i) 100% exploration coverage of the 5.1 Objectives
Indian sedimentary basins by 2025.
ii) Leapfrog to technological a) To encourage use of natural gas,
superiority. which is relatively a clean fuel.
iii) Put in place abandonment practices b) To ensure adequate availability by a
to restore the original base line. mix of domestic gas imports through
iv) Conserve resources and adopt clean pipelines and import of LNG.
technologies. c) To tap unconventional sources of
4. External policy & Oil Security natural gas like coal bed methane,
natural gas hydrates, underground coal
4.1 Objectives gassification etc.
Supplement domestic availability of oil 5.2 To achieve the above objectives the
with a view to provide adequate, stable, following actions are required to be
assured and cost effective hydrocarbon taken.
energy to the Indian economy.
5.3 Medium term
4.2 To achieve the above objective the
following actions are required to be i) Timely and continuous review of gas
taken. demand and supply options to facilitate
policy interventions.
4.3 Medium term ii) Pursuing diplomatic and political
initiatives for import of gas from
i) Put in place a comprehensive policy neighbouring and other countries with
to include total deregulation of emphasis on transnational gas
overseas E&P business and pipelines.
empowering them to compete with iii) Expediting setting up of a
international oil companies with regulatory framework.
provision of fiscal and tax benefits. iv) Import LNG to supplement the
ii) Evolve a mechanism to leverage domestic gas availability and
India's “Buyer Power" to obtain quality encourage domestic companies to
E&P projects abroad. participate in the LNG chain.
iii) Have focussed approach for E&P v) Provide a level playing field for all
projects and build strong relations in the gas players and ensure reasonable
focus countries with high attractiveness transportation tariffs. .
like Russia, Iraq, Iran and North vi) Rationalise customs duty on LNG
African countries. and LNG projects.
vii) Put in place an effective
5. Natural Gas. organisational structure, which would
facilitate progress in the National Gas
Natural gas is emerging as the Hydrates Programme.
preferred fuel of the future in view of it viii) Opertionalise the Coal Bed
being an environmental friendly Methane Policy with a time bound
economically attractive fuel and also a programme.
desirable feedstock. Increased focus ix) Formulate National Policy on
needs to be given to this potential Underground Coal Gassification in a
sector. time bound manner.
x) Increase R&D efforts on conversion some products in certain remote areas,
of gas to liquids. Which are to be identified and
reviewed from time to time.
Source: Upto 2011 from Technical Note on Energy, Planning Commission, Govt. of
India (1998-99). Beyond this period the figures have been extrapolated.
Share of hydel energy remains constant considering the planned capacity addition
upto 2012 and projected at the same level upto 2025.
Annexure-II
Per capita Energy consumption in minion tonnes of oil equivalent (MTOE)
Bangladesh 81 80
SUPPLY/DEMAND-NATURAL GAS
(in million standard cubic meters per day)
(MMSCMD)
DEMAND
1999-2000 110
2001-2002 151
2006-2007 231
2011-2012 313
2024-2025 391
Source: Report of the Sub-Group on development and utilisation of natural gas (1999).
As against this requirement, the present domestic gas supply is 65 MMSCMD. The
gap will have to be met from imports, increase in domestic production and by
switching to liquid fuels.