Executive Summary 6
1.1 Economy & Energy 6
1.2 International Scenario 6
1.3 Indian Scenario 7
1.4 Thrust Areas for the Petroleum and Natural Gas Sector 8
1.5 Acknowledgements 9
2 Overview of Petroleum & Natural Gas Sector 11
2.1 Background 11
2.2 Global Scenario 11
2.3 Indian Scenario: 17
3 Performance Review of X Plan Period 25
3.1 Introduction 25
3.2 Hydrocarbon Reserve Position 25
3.3 Crude Oil and Natural Gas Production 26
3.4 Implementation of New Exploration Licensing Policy (NELP) 28
3.5 Implementation of Coal Bed Methane (CBM) Policy 28
3.6 Equity Oil and Gas from Abroad 29
3.7 Consumption of Petroleum Products during X Plan 31
3.8 Refining Capacity 32
3.9 Investments 33
4 Review of Policy Measures 36
4.1 Marketing and Distribution of Petroleum Products 36
4.2 Marketing & Distribution of Natural Gas 39
4.3 Auto Fuel Policy 40
4.4 Safety & Environment Management 41
4.5 Subsidy Structure 44
4.6 Regulatory Environment 45
4.7 Report of the Expert Committee on Integrated Energy Policy 48
4.8 Dr. C Rangarajan Committee Report 51
4.9 Dr. V. Krishnamurty’s Report on Restructuring of Petroleum Sector 55
5 Thrust Areas for XI Plan Period 57
5.1 Major Thrust Areas for XI Plan Period 57
6 Demand - Supply Gap Analysis for XI Plan Period 60
6.1 Demand for Petroleum Products 60
6.2 Demand Supply Gap for Petroleum Products 63
6.3 Demand for Natural Gas 65
6.4 Demand – Supply Gap for Natural Gas 69
7 Towards Oil and Gas Security 72
7.1 Towards Oil Security 72
7.2 Bio-fuels Programme 72
7.3 Strategic Storage 74
7.4 Conservation of Products 75
7.5 Alternative Sources of Energy 77
8 Targets for XI Plan Period 82
8.1 Exploration and Development of Oil and Gas 82
8.2 Crude Oil and Natural Gas Production 83
8.3 Equity Oil and Gas Abroad 84
8.4 Refining Capacity Additions 87
8.5 Crude Oil Requirements and Imports 89
9 Manpower Planning for XI Plan and beyond 93
9.1 Planning for Sustained Availability of Knowledge Workers for the Oil and Gas Industry 93
9.2 Servicing E&P Activities in India 97
10 Research & Development Focus during XI Plan 98
10.1 Internationalization of R&D 98
10.2 Drivers of Global R&D. 98
10.3 R&D in developing countries 99
10.4 Exploration & Development 100
10.5 Natural Gas Sector 101
10.6 Refining Sector 102
10.7 R&D – Way Forward 104
11 Investment Requirement and Infrastructure Development 105
11.1 Exploration and Production Sector 105
11.2 Refining and Marketing Sector 106
11.3 Natural Gas Sector 109
12 Conclusions & Suggestions 113
12.1 Exploration & Production Sector 113
12.2 Natural Gas Sector 113
12.3 Refining Sector 115
12.4 Marketing Sector 117
12.5 Others 117
13 Annexure 118
13.1 Annexure I – Constitution of the Working Group 118
13.2 Annexure II (a) – Constitution of Working Sub Groups 123
13.3 Annexure II (b) –Sub Group on E&P 126
13.4 Annexure II (c) –Sub Group on NG and Marketing 127
13.5 Annexure III - Energy Policy in Asian Economies 129
13.6 Annexure IV - Herfindahl-Hirschman Index (HHI) 134
13.7 Annexure V - Year Wise, Product Wise Comparison of Actual & X Plan Projections 135
13.8 Annexure VI - Demand Projections by Various Agencies 136
13.9 Annexure VII - Demand For Petroleum Products During The XI Plan & Beyond 137
13.10 Annexure VIII - Potential for Reducing Oil Demand Through Vehicle Fuel Economy Improvement 139
13.11 Annexure IX – Demand Projections By Various Agencies for Natural Gas 142
13.12 Annexure X - Refining Capacity at Beginning Of XI Plan 143
13.13 Annexure XI- Value Addition & Other Benefits of Surplus Capacity 146
13.14 Annexure XII- Abbreviations 148