2024-10-14 22:17:00
Oil exploration still has a bright future ahead of it in India. The authorities are increasingly asking oil majors to explore the Indian subsoil and waters, to exploit the oil windfall before the pressure linked to the energy transition is too strong.
The Indian Oil and Gas Minister did not repeat word for word the famous republican slogan “ Drill, darling, Drill » which encouraged the drilling of the American subsoil in 2008 before being taken back by Donald Trump, but the message was passed during the energy transition summit organized by Financial times in New Delhi in recent days, it’s the same thing: that of an appeal in favor of new exploratory campaigns.
According to data, the Asian giant will be the country that will be able to satisfy the majority of global demand by 2030 the International Energy Agency – with an estimated consumption of 6.6 million barrels of oil per day (mb/d) by 2030. However, to date, India is 90% dependent on its imports and produces “only” 700,000 barrels/day , a volume destined to decrease, due to the lack of oil discoveries in recent years, according to the IEA which forecasts production of 540,000 b/d in 2030.
90% of potential oil fields are unexplored
In recent years, India has built numerous refineries capable of processing the crude oil it needs. This now authorizes it to launch new oil exploration upstream, to increase its energy security, explains Charles Thiémélé, director for Africa of the company BGN Trading.
To accelerate the exploration of its subsoil, while being politically correct, the Minister of Oil and Gas brought his pilgrim’s staff to get closer to Exxon, BP, Chevron, without forgetting to go to Brazil to discuss with Petrobras.
Onshore and offshore, India claims to have colossal reserves. “ Because there was negligence “, says Hardeep Singh Puri, only 10% of the country’s potentially productive oil basins are explored. The remaining 90% remains to be explored.
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Review of the legislation
To win its campaign of seduction, India promises radical legal reform to limit bureaucratic and regulatory hurdles that may have discouraged some investors in the past.
It is now up to international companies to take the plunge and bet on Indian oil, because if exploration requires a few million dollars of investments, the production phase costs hundreds of millions, even billions of dollars to release a first barrel, with no guarantee for the future.
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