oil: Modi’s plans to cut crude imports unravel as domestic production slides. India will need new oil discoveries.

Oil refinery control room, Saudi Arabia. Saudi Arabia and Iraq are the top two nations that India imports crude oil from.

Synopsis

A bounce in oil imports will be inflationary, given that crude prices continue to move north. More spending on crude would also put enormous pressure on the fisc.

It’s a story that encapsulates India’s struggle to become energy self-sufficient. Long years ago, in the 1960s, a Russian exploration team conducted a seismic and geological study in India and stumbled upon the country’s largest oil and gas field — Bombay High. It was a high point for energy-starved India, and over the years, this field became ONGC’s backbone, accounting for almost 75% of its production. Cut to 2019. ONGC accounts for about 65%

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