Oil and Gas Current Affairs - 2019
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GoI has been reforming the oil and gas sector lately. Steps are being taken to free up pricing of oil and gas sector to scale up oil and gas production and to increase investment in the sector. To achieve this, GoI on November 11, 2019 removed price restriction on locally produced oil and natural gas.
Current Pricing System
The current pricing system of oil and gas is based on the New Exploration Licensing Policy. According to the policy, the producers cannot charge gas from deep sea below government-prescribed ceiling. GoI has fixed this ceiling at 8.43 USD per mmBTU. The ceiling is to be removed under the new regulation.
Gas producers were critical about this low pricing that affected the investment adversely. Though, the prices seem increasing at initial period, it will get reduced in long term. As more investors compete in the market, the prices will gradually fall after reaching a saturation peak point.
The move was suggested by the Kelkar Panel. The Panel suggested to increase the ceiling gradually and remove it completely to increase the investment.
Kelkar Panel was set up by the Petroleum Ministry to boost domestic production of oil and gas and to help India achieve energy security. It was set up in 2013 under the Finance secretary Vijay Kelkar. The Kelkar Committee submitted its report in 2013
Tags: Gas pricing • Ministry of Petroleum • Oil and Gas • Recommendations of Vijay Kelkar committee
Minister of Petroleum, Natural Gas and Steel Shri Dharmendra Pradhan will represent India at the ADIPEC-Abu Dhabi International Petroleum Exhibition and Conference between November 10-12, 2019.
- During the visit, minister will inaugurate the “India Pavilions” along with members and leader from CII, FIPI and DGH-Directorate General of Hydrocarbons. Indian Pavillion is a platform to showcase Indian Cinema in the overseas market.
- As a part of the workshop, India will conduct a road show to attract foreign investment, especially in the field of oil and gas.
- The Minister is to meet his UAE counterpart on the sideline of his visit and discuss issues of steel sector and hydrocarbon. The discussions are to be held under the recently developed India-UAE Strategic Partnership during PM Modi visit to UAE
- India is to use this opportunity to find new markets of steel in the middle east countries.
- ADIPEC is one of the most influential global conference in the field of oil and gas. More than 1,45,000 delegates from all over the worl are to attend the conference.
- Interacting with the policy makers, investors and leaders will help India gain investment opportunities.