Modi’s plans to cut crude imports unravel as domestic production slides. India will need new oil discoveries.
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Oil refinery control room, Saudi Arabia. Saudi Arabia and Iraq are the top two nations that India imports crude oil from.
Synopsis
A bounce in oil imports will be inflationary, given that crude prices continue to move north. More spending on crude would also put enormous pressure on the fisc.
It’s a story that encapsulates India’s struggle to become energy self-sufficient. Long years ago, in the 1960s, a Russian exploration team conducted a seismic and geological study in India and stumbled upon the country’s largest oil and gas field — Bombay High. It was a high point for energy-starved India, and over the years, this field became ONGC’s backbone, accounting for almost 75% of its production. Cut to 2019. ONGC accounts for about 65%
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