A Parliament panel has questioned rising oil and gas capex as crude production continues falling. The Committee on Public Undertakings raised the concern in Parliament on Thursday. It asked the Petroleum Ministry to explain why higher spending has not increased domestic output. The panel also wants clear results from new exploration blocks and major projects.
Oil and gas capex by public sector companies rose from Rs. 1.3 lakh crore to Rs. 1.7 lakh crore. However, crude oil production may fall from 34.2 MMT to 28.7 MMT. The decline covers 2018-19 to 2024-25, despite higher investments across the sector. India imports nearly 90% of its crude needs, making domestic output important for energy security.
The panel said the ministry’s earlier response did not fully explain the weak link. It has sought a detailed report showing expected production gains from recent investments and exploration reforms.
The committee also wants clear performance targets, regular reviews and stronger accountability for delayed projects. It accepted that older oilfields naturally lose output over time.
New exploration projects also need several years before commercial production starts. The panel, however, expects investments to eventually improve or stabilize domestic production.
The report said, “The real returns on these massive investments must reflect in reversed production curves.”
The ministry has highlighted several steps aimed at increasing exploration and production. These include new offshore blocks, wider exploration areas and increased seismic survey activities.
The government has also pushed the Samudra Manthan offshore exploration initiative to find more oil and gas. The Centre sees deeper exploration as important for reducing import dependence.
The panel’s latest demand shifts attention from spending levels toward measurable production results. It now wants investments to show clear progress in India’s domestic oil output.
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