India's Crude Output Falls to 28.7 MT, Deepening Import Dependence

7 articles · Updated · Outlook Business · Jun 1

India’s domestic crude production dropped to 28.7 million tonnes in 2024-25 from 36.94 million tonnes in 2015-16, widening the gap between rising energy demand and local supply.
Nearly 70% of India’s oil wells are mature, with legacy fields such as Bombay High and KG-D6 past peak output and few new discoveries replacing declining reservoirs.
ONGC, which produces about 70% of India’s domestic oil and gas, raised capital spending at a 6.1% CAGR from 2019-20 to 2023-24, far slower than its 12.2% growth in payments to the government.
India’s push to attract outside capital has delivered only $8.19 billion in oil-and-gas FDI since 2000, as tougher geology, policy disputes and stronger opportunities in Brazil, Guyana, US shale and West Asia deter investors.
Recent tanker tensions near the Strait of Hormuz have sharpened the strategic risk of that dependence, reinforcing calls for deepwater exploration, more natural gas and faster expansion of renewables and biofuels.

With new domestic oil finds a decade away, how will India navigate the immediate energy crisis sparked by the Hormuz conflict?

Is the Hormuz oil crisis the shock India needs to finally accelerate its transition to renewable energy security?

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