Mumbai: India's crude oil production in 2013-14 was largely flat at 37.77 million tonnes as compared to 37.86 million tonnes in the previous financial year. However, there was a substantial drop in the natural gas output. The production was pegged at 35.39 billion cubic metres (BCM) against 40.68 BCM in the preceding fiscal. While crude oil imports increased by over 2 per cent to 189.24 million tonnes, LNG import remained almost flat at 10.76 million tonnes against 10.90 MT in FY'13.
"As you all know, the growing energy deficit does not augur well for the country?s economic fundamentals. The rising import bill is already exerting a considerable strain on country's trade balance. Depreciation of rupee dollar further compounded the problem," Sarraf said. However, the situation has evidently improved in the current financial year with the drop in international crude prices. "With the oil prices reaching below USD 100 per barrel in the recent days and with the relative stability of rupee, the outlook of Indian E&P industry is quite positive," he added.
