India's crude oil production tapers, delaying cut in import dependence

India produced around 2.5-2.6 million tonnes (mt) of crude oil per month in 2020, according to the data shared by the Ministry of Petroleum and Natural Gas, slightly lower than 2.7-2.8 mt in 2019.
 

The reduction is largely owing to ageing fields that will be producing less unless more enhanced oil extraction techniques are implemented. This is likely to delay the goal of reducing crude oil import.
 

According to officials from oil exploration companies, the low price of oil and a lack of adequate support from the government disincentivises incurring higher costs for production.
 

“The risk factor is higher now