Energy today has become spinal cord for economic growth and development: Petroleum Minister Hardeep Puri

“Energy has become the backbone of economic growth and development,” stated Shri Hardeep Singh Puri, Minister of Petroleum & Natural Gas, during the inauguration of GEO India 2024, the premier South Asian Geosciences Conference and Exhibition, held in Greater Noida today. In his keynote address, Shri Puri underscored the pivotal role of energy in driving economic progress, particularly in a rapidly growing economy like India, where energy demand is rising sharply.

The Minister expressed his pleasure in being part of an event that brings together leading experts from the Exploration and Production (E&P) sector, both from India and abroad. GEO India 2024, organized by the Association of Petroleum Geologists, India, marks the sixth edition of the conference and exhibition, with this year’s theme, “Exploring New Dimensions of Energy Dynamics.”

With India’s fuel demand growing at three times the global average, Shri Puri highlighted that 67 million people visit petrol pumps across the country every day. This increasing demand is expected to account for 25% of the global rise in energy consumption over the next two decades. “Balancing the trilemma of availability, affordability, and sustainability is not just a priority but a commitment that we are addressing directly, with a focus on exploration, production, and energy security,” he said.

India’s energy landscape is evolving rapidly, with the country currently holding 651.8 million metric tons of recoverable crude oil reserves and 1,138.6 billion cubic meters of recoverable natural gas reserves in its sedimentary basins. Despite these significant resources, a large part of India’s exploration potential remains untapped. Shri Puri noted that when the current government assumed office in 2014, only 6% of India’s sedimentary basins had been explored. Today, this figure has increased to 10%, and with ongoing exploration efforts under the Open Acreage Licensing Policy (OALP), it is expected to rise to 16% by 2025. By 2030, the government aims to expand exploration acreage to 1 million square kilometers, further strengthening India’s energy security.

The Minister also outlined key reforms that have been implemented to stimulate growth in India’s energy sector. These include simplifying the approval process for exploration and production activities, reducing the number of approval steps from 37 to 18, with nine of these now eligible for self-certification. Additionally, the introduction of the Oilfields (Regulation and Development) Amendment Bill in 2024 ensures policy stability, facilitates international arbitration, and extends lease periods. The government has also reduced “No-Go” areas in the Exclusive Economic Zone (EEZ) by nearly 99%, opening up vast new areas for exploration.

Shri Puri also emphasized the shift from the previous regime’s Production Sharing Contracts (PSCs) to the new Revenue Sharing Contracts (RSCs), which offer greater clarity and predictability for investors. He pointed to the establishment of a Joint Working Group (JWG), which includes stakeholders from private E&P companies, National Oil Companies, the Ministry of Petroleum and Natural Gas (MoPNG), and the Directorate General of Hydrocarbons (DGH), aimed at addressing industry concerns and improving the ease of doing business.

Another major initiative is improving access to data regarding India’s sedimentary basins. The government has made significant progress in facilitating data availability through initiatives like the National Seismic Programme (NSP) for onshore areas, EEZ surveys for offshore areas, and the exploration of previously untapped regions such as the Andaman Basin. Shri Puri noted that the government is also making this data more accessible to international companies by establishing a new data center at the University of Houston, allowing foreign firms to easily access vital geological information.

The recent Open Acreage Licensing Policy (OALP) bidding round IX marked a significant milestone, offering 136,596 square kilometers of exploration area across 28 blocks in eight sedimentary basins. Notably, 38% of the area offered in this round had previously been classified as “No-Go” areas. The bidding round saw a strong response, with 60 bids submitted for the 28 blocks, demonstrating growing interest from both Indian and foreign companies. The average number of bids per block increased to 2.4, compared to 1.3 per block in the previous round.

Looking ahead, Shri Puri expressed optimism for India’s energy future, particularly in the emerging field of green hydrogen. With projects focused on blending hydrogen into natural gas pipelines, localizing electrolyser technologies, and promoting bio-pathways for green hydrogen production, India is positioning itself to become a global leader in green hydrogen production and exports. “Green hydrogen is the fuel of the future, and India is committed to becoming a global hub for its production,” he stated.

GEO India 2024 is expected to attract around 2,000 participants, with over 20 conference sessions, four plenary discussions, more than 200 technical papers, and 50+ exhibition booths. “I have full confidence in the innovative minds of geoscientists to lead an energy revolution in India, ensuring energy security for every citizen and addressing future challenges,” said Shri Puri.

He encouraged the participants of GEO India 2024 to continue fostering innovation, embracing sustainability, and collaborating to tackle the challenges of the future.

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