Energy today has become spinal cord for economic growth and development: Petroleum Minister Hardeep Puri

Ministry of Petroleum & Natural Gas

Posted On: 15 NOV 2024 3:36PM by PIB Delhi

“Energy today has become the spinal cord for economic growth and development,” said Shri Hardeep Singh Puri, Minister of Petroleum & Natural Gas, during the inaugural ceremony of GEO India 2024, India’s premier South Asian Geosciences Conference and Exhibition in Greater Noida today. In his keynote address, Shri Puri highlighted the critical importance of energy in driving economic progress, especially in a country like India, where the demand for energy is increasing rapidly in line with its growing economy.

The Minister expressed his delight at being part of the event, which brings together leading experts from the Exploration and Production (E&P) sector both from India and abroad. GEO India 2024, organized by the Association of Petroleum Geologists, India, is the sixth edition of the conference and exhibition, with the theme “Exploring New Dimensions of Energy Dynamics.”

With India’s fuel demand growing at three times the global average, Shri Puri highlighted that 67 million people visit petrol pumps every day in India. This surging demand is expected to drive 25% of the global increase in energy consumption over the next two decades. “Balancing the trilemma of availability, affordability, and sustainability is not only a priority but a commitment that we are meeting head-on with a focus on exploration, production, and energy security,” he said.

India’s energy landscape is rapidly evolving, with the country boasting 651.8 million metric tons of recoverable crude oil reserves and 1,138.6 billion cubic meters of recoverable natural gas reserves within its sedimentary basins. Despite these abundant resources, a significant portion of India’s exploration potential remains untapped. Shri Puri pointed out that when the current government took office in 2014, only 6% of India’s sedimentary basins had been explored. Today, this figure has risen to 10%, and with further exploration activity under the Open Acreage Licensing Policy (OALP) rounds, this is set to increase to 16% by 2025. By 2030, the government aims to expand the nation’s exploration acreage to 1 million square kilometers, further bolstering India’s energy security.

The Minister also outlined several significant reforms implemented under the current government to stimulate growth in India’s energy sector. Key reforms include simplifying the approval process for exploration and production activities, reducing 37 approval processes to just 18, of which nine are now available for self-certification. Additionally, the introduction of the Oilfields (Regulation and Development) Amendment Bill in 2024 ensures policy stability for oil and gas producers, allows for international arbitration, and extends lease periods. Furthermore, the government has reduced “No-Go” areas in the Exclusive Economic Zone (EEZ) by almost 99%, opening up vast new areas for exploration.

Shri Puri also highlighted the shift from the previous regime’s Production Sharing Contracts (PSCs) to the new Revenue Sharing Contracts (RSCs), which provide greater clarity and predictability for investors. He emphasized the establishment of a Joint Working Group (JWG) comprising stakeholders from private E&P companies, National Oil Companies, the Ministry of Petroleum and Natural Gas (MoPNG), and the Directorate General of Hydrocarbons (DGH) to address industry concerns and improve the ease of doing business.

Another key area of focus has been improving access to data concerning India’s sedimentary basins. The government has made significant strides in facilitating data availability through initiatives like the National Seismic Programme (NSP) for onshore areas, EEZ surveys for offshore areas, and the opening up of previously unexplored regions such as the Andaman Basin. Shri Puri noted that the government is also making data more accessible to international companies by setting up a new data centre at the University of Houston, enabling foreign firms to view critical geological data with ease.

The recent Open Acreage Licensing Policy (OALP) bidding round IX marked a historic milestone, with 136,596 square kilometers of exploration area offered in 28 blocks across 8 sedimentary basins. Notably, 38% of the area offered in this round had previously been classified as “No-Go” areas. The round saw a strong response, with a total of 60 bids received for the 28 blocks, reflecting heightened interest from both Indian and foreign companies. The average number of bids per block increased to 2.4, compared to just 1.3 per block in the previous round.

Looking ahead, Shri Puri expressed optimism about India’s energy future, particularly in the field of green hydrogen. With projects focused on hydrogen blending in natural gas pipelines, the localization of electrolyser technologies, and the promotion of bio-pathways for green hydrogen production, India is positioning itself as a future global leader in green hydrogen production and exports. The Minister emphasized that green hydrogen is seen as the fuel of the future, and India is committed to becoming a global hub for its production.

GEO India 2024, is expected to draw around 2,000 participants and feature over 20 conference sessions, 4 plenary discussions, 200+ technical papers, and 50+ exhibition booths.  “I have great faith in the innovative minds of geoscientists to lead an energy revolution in India, ensuring energy security for every citizen and meeting future challenges,” Shri Puri said.

Shri Puri encouraged the participants of GEO India 2024 to continue fostering innovation, embracing sustainability, and collaborating to address the challenges of the future.

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MN

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