Lockdown has affected every industry, Natural Gas and Crude Oil Industry haven’t been spared either. India’s gas production has hit a toll and declined 14% in March and one fifth in April as compared to last year. 2411 MMSCM was the recorded production of natural gas in March. With 2.16bcm gas produced, a sharp drop of 18.6% was recorded in production in April.

Our country, in 18 years has recorded the lowest production of natural gas in 2019-20. According to an analysis of historic data by ETEnergyWorld, the fall in production is by 5%, with the production standing at 31180 MMSCM. The hit in production is not restricted to Natural gas. Production of crude oil also has considerably reduced in 2019-20.


ONGC- Oil and Natural Gas Corporation is the country’s largest Exploration and Production company (E&P). ONGC recorded a fall of 11% in March with only 1906 MMSCM of gas production. The yearly fall of production stands at a 15.3% drop to 1.72bcm. Production was
also marginally low in April with 1.7 million tonnes. ONGC also produced less Crude oil during the crisis period.


OIL INDIA- Oil India too contributed to less production of gas and crude oil. With 202.05 mcm gas produced, 10% less than normal gas been recorded in Oil India in March. 2% has declined in cumulative production has been recorded in 2019-20, with 2668 MMSCM production.

PRIVATE/ JOINT Decline of 34 % to 294 MMSCM has been recorded in fields owned by private
and joint ventures in March 2020, as compared to the corresponding month a year ago. Declined of 13% to 4,766 MMSCM was recorded in cumulative production in the financial year, 2019-20.


CAIRN’S RAJASTHAN FIELDS The official data showed 19.2% less production of oil by the CAIRN’S Rajasthan fields with 490560 tonnes of production.

REASONS FOR THE PRODUCTION DROP The most plausible explanation for the drop in production is because of the shutdown during the COVID-19 crisis and its repercussions.

There is a huge fall in gas and petroleum offtake due to the lack of transportation during the pandemic. Refineries in India produced 30% less during the month of April due to the
vehicles being out of use in most households.

“Reasons for shortfall in production mainly include low demand due to COVID-19 lockdown,” the ministry said. Not only vehicles, but there’s also a considerable less off take by fertilizer plants and gas power plants too.


According to a particular analyst, the reason for production drop is the long gap in the auctioning of oil and gas fields in the pre-Hydrocarbon Exploration Licensing Policy (HELP) regime. Debasish Mishra, Partner, Lead-Energy, Resources, and Industrials at Deloitte India told ETEnergyWorld said, “Before HELP and DSF rounds, there was no action on licensing for Exploration and Production (E&P) for almost nine years. The impact of this gap is now being felt in terms of falling production.”

The pandemic has affected every field and it gets graver by day as lockdown is extended week after week due to rapid spread of Coronavirus.

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