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India's domestic crude oil production slips to 28-year low in FY22

Production declined every month for last 4-and-a-half years in core sector index; old fields among likely reasons

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Bank of Baroda’s Chief Economist Madan Sabnavis said production has been declining because of ageing wells and the absence of fresh investment.

Indivjal DhasmanaShine Jacob New Delhi/Chennai
Domestic crude oil production has been in decline since the financial year 2014-15 (FY15), dropping to just 28.4 million tonnes (MT) in FY22, the lowest since FY94. The production in 2021-22 represented a decline of 11.8 per cent from 32.2 MT in FY95, increasing the economy’s vulnerability due to skyrocketing global oil prices.

The demand for crude oil has, however, increased over those years. As a result, imports of petroleum products rose to 212 MT in FY22, 676.5 per cent higher than the 27.3 MT imported in FY95. The gap between domestic crude oil production and imports grew to a whopping

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First Published: May 31 2022 | 6:03 AM IST

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