Puri to focus on hiking domestic production as new Petroleum Minister

Will work towards increasing share of natural gas in energy mix

India’s new Petroleum Minister Hardeep Singh Puri is going to focus on increasing domestic production of crude and natural gas. He said that he will also work towards growing the sharing of natural gas in India’s primary energy mix.

Speaking shortly after taking charge from Dharmendra Pradhan, who was given the charge of Skill Development and Education ministries, Puri said, “The energy issues in this Ministry have immense potential and several challenges. The need to adapt to changing times, adopt new technologies and to be in consonance with the energy transition taking place across the world, provides a fascinating opportunity.”

Rameswar Teli, Minister of State for Petroleum and Natural Gas also took charge on Thursday. Puri will hold this position in addition to his role as the Minister for Housing and Urban Affairs.

“As we transform towards a $5-trillion economy, energy availability and consumption will be of paramount importance. My focus will be on increasing domestic production of crude and natural gas. I will also work towards development of a natural gas-based economy in the country and increase the share of natural gas in primary energy mix of the country to 15 per cent by 2030,” Puri said.

Delivering the inaugural address at the global energy summit — Urja Sangam — in 2015, Prime Minister Narendra Modi had called for enhancing domestic oil and gas production to cut the import burden. He aimed at lowering it by at least 10 per cent by 2022, to coincide with the platinum jubilee of India’s independence.

“India is dependent on imports to meet 77 per cent of our energy requirements from the oil, gas and petroleum sector. Can it be that by August 15, 2022, we will be able to bring this import dependence down by at least 10 per cent? This lowering of import will be by hiking domestic production by 10 per cent. Once we are able to do so, by 2030, we can cut imports further by 50 per cent,” Modi had said.

In 2015, domestic crude oil production stood at 35.5 mt (2015-16) but has fallen to 29.1 mt in 2020-21. The slowdown in crude oil production was partly on account of the lockdown; ageing fields that form the mainstay of domestic output are also drying up fast.