Budget 2019 wishlist: Here are the key challenges for oil and gas sector

India continues to rely heavily on coal and petroleum products to meet its energy needs.

Key challenges

• Declining domestic crude production: Most of the producing fields (in Cambay, Assam-Arakan and Mumbai Offshore) are maturing or have already matured. Due to inadequate new oil and gas discoveries and subsequent development, India is witnessing a decline in crude production.
• Large crude import bills: In 2018-19, India imported more than 80% of its crude consumption and spent in excess of $110 billion
• Inadequate transmission & distribution infrastructure: India needs to invest heavily in midstream and downstream sector to overcome infrastructure constraints in LNG, gas pipelines and CGD.
• Technology constraints: The country needs investment in exploring and developing Category-2 and Category-3 basins.