With close to 70% of its oil requirements imported from more than 8 countries, India is a net importer of oil. The rest 30% is provided by the domestic oil production.

 

India’s oil consumption has increased and the production almost remained the same. This did not take into account the recent findings of Reliance in KG basin. Even if they did find some other reserves the graph is not likely to be changed in the future.

Starting in 1996 India’s import’s exceeded its production. India’s production has been fairly consistent.

India Oil Production and Consumption

Oil is the second largest fuel after coal. Nuclear and renewables account to a mere 2%.  The figures should be slightly different for 2009 but not radically different ( a little increase in renewables especially wind). Even coal usage is a little alarming but we have some reserves. Not the same case with oil. From the graph above the production is constant.

India Total Energy Consumption

India imports more than 70% of its oil needs from several different countries with Saudi Arabia and Iran topping the list.

India Oil Imports

These 3 pictures give a holistic view of energy consumption in India, its oil usage and imports. One trend is clear. The oil production is not increasing, but the oil usage is increasing. And oil is a major factor in India’s energy equation.

If Indian consumers has to realize what they are consuming then they should realize how much they should pay for it. Right now they are not and that is a problem.

Indian consumers are shielded from the global shocks thanks to the oil subsidies. This is not an incentive enough to bring in a behavioral change which is what we need to reduce our oil usage. (source)