PIB Summary- 28th January, 2025 | PIB (Press Information Bureau) Summary - UPSC PDF Download

India’s Petroleum Industry: Fueling Growth and Innovation

Context

India’s petroleum industry is vital for energy security, economic growth, and technological advancement.

The sector is evolving with increased exploration, refining capacity, and green energy initiatives.

Introduction to India’s Petroleum Industry

• India’s petroleum industry includes exploration, production, refining, distribution, and marketing of petroleum products.
• The sector is divided into upstream (extraction), midstream (transportation and storage), and downstream (refining and distribution) activities.
• India’s petroleum industry ensures energy security and supports economic activities.
• India has 19 public sector refineries, 3 private refineries, and 1 joint venture refinery.
• The country’s refining capacity has increased from 215.066 Million Metric Tons per annum (MMTPA) in 2014 to 256.816 MMTPA in 2024.

Origin and History

• India’s petroleum journey began in 1867 with the first oil well drilled in Digboi, Assam.
• The Indian Oil Corporation was established in 1959 to refine and distribute petroleum products.
• Over time, India’s petroleum industry expanded to meet both domestic and export needs.

Industry Development

• The 1990s saw economic liberalization, leading to more private and foreign investments.
• Public sector companies like ONGC and Indian Oil Corporation played key roles in exploration and refining.
• The development of modern refineries, such as the Jamnagar Refinery, has made India a major refining hub.
• India has 651.8 million metric tons of crude oil reserves and 1,138.6 billion cubic meters of natural gas reserves.

Recent Updates in the Petroleum Industry

• India aims to increase exploration acreage to 1 million square kilometers by 2030, with a 16% increase expected by 2025.
• The cost of a domestic LPG cylinder is among the lowest worldwide, priced at Rs. 803 for a 14.2 kg cylinder.
• The approval process for exploration and production has been streamlined from 37 to 18 processes.
• The Oilfields (Regulation and Development) Amendment Bill passed in 2024 supports policy stability for oil and gas producers.

Foreign Trade in Petroleum

• India’s refining capacity of over 250 million metric tonnes per annum allows it to cater to global markets.
• Key export destinations include South Asian, African, and European countries.
• The government’s focus on export growth and establishing Special Economic Zones has boosted petroleum exports.

Contribution to GDP

• The Gross Value Addition (GVA) from refined petroleum products increased from Rs. 1.56 lakh Crore in 2012-13 to Rs. 2.12 lakh Crore in 2022-23.
• The sector provides direct and indirect employment in exploration, refining, distribution, and retail, supporting other industries like petrochemicals and logistics.

Global Positioning

• India ranks in the top five globally for refining capacity and is the seventh-largest exporter of refined petroleum products.
• India is the second-largest country in ethanol blending and third-largest in biofuel production.
• India also has the fourth-largest LNG terminal capacity and refining capacity globally.

Technological Advancements

• The petroleum industry has embraced enhanced oil recovery (EOR) techniques and AI for better exploration and production.
• Refineries are adopting green technologies to reduce environmental impact.
• The industry is also focusing on alternative fuels like compressed biogas (CBG) and bio-refineries.

Government Initiatives

• Pradhan Mantri JI-VAN Yojana for bio-ethanol production.
• Strategic Petroleum Reserves to ensure energy security.
• Ethanol Blending Program, with a target of 20% ethanol blending in petrol by 2025-26.
• Expansion of City Gas Distribution Networks and investments in energy security.

Greener Fuels and Sustainability Initiatives

• The SATAT Initiative promotes compressed biogas production using agricultural residue and waste.
• Mission Green Hydrogen aims to produce 5 million metric tons of green hydrogen by 2030.
• National Bio-Energy Program focuses on bio-energy production and waste reduction.

Implications for Growth and Development

• The petroleum industry drives economic growth by increasing GDP, boosting foreign exchange, and supporting industrial expansion.
• It strengthens India’s political and energy independence.
• The industry also fosters rural development by improving energy access and creating jobs.

Conclusion

• India aims for substantial growth in refining capacity, ethanol blending, green hydrogen production, and exploration acreage by 2030.
• These efforts will help India maintain its global leadership in the energy sector while addressing environmental goals.