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Crude production slips 4.9% amid low demand, shutdowns

Lower demand due to Covid-19 and plant shutdowns planned to coincide with lower demand were key reasons for lower output, a government release said.

By: ENS Economic Bureau | New Delhi | December 23, 2020 3:42:39 am
Cumulative crude oil production in April-November was 20,427 TMT, down 6 per cent from 21,725 TMT in the same period last year.

The nation’s crude oil production fell 4.9 per cent in November to 2,486 thousand metric tonnes (TMT) from 2,680 TMT a year ago, while natural gas production fell 9.1 per cent from last November.

Lower demand due to Covid-19 and plant shutdowns planned to coincide with lower demand were key reasons for lower output, a government release said.

Meanwhile, crude oil processing in the month fell 5.1 per cent to 20.8 million tonnes as against 21.9 million tonnes in the year ago period, but rose 13 per cent from the 18.9 million tonnes processed in October, according to government data released on Tuesday.

Cumulative crude oil production in April-November was 20,427 TMT, down 6 per cent from 21,725 TMT in the same period last year. This is also 5.3 per cent lower than the target of 21,566 TMT set for this period, according to the official release.

Significantly lower production from Cairn India’s Rajasthan fields — where output fell 9.6 per cent to 477 TMT compared to 527.5 TMT in the corresponding period last year — comprised a key portion of the shortfall in crude oil output.

ONGC’s crude oil output fell 1.5 per cent in November due to lower than expected production levels at newer fields, the operations of which were impacted due to Covid implications, the government release said.

Output by Oil India (OIL) was down 6.53 per cent in November over last year due to lower than expected production from older wells and the impact of protests and blockades at OIL units after the Baghjan well blowout in May.

Natural gas output in the country fell largely due to closure of ONGC gas wells in the western offshore due to a plant shutdown in Hazira as well as lower than expected production from wells in the Eastern offshore region.

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