India, the world’s third-largest energy consumer, relies significantly on petroleum products to fuel its economy. With increasing industrial demands, transportation needs, and the growing population, petroleum plays a pivotal role in powering India. Though India imports a large portion of its crude oil, domestic production is crucial to reducing reliance on imports. Here is the list of most petroleum producing states of India:
1. Rajasthan
Rajasthan continues to hold its position as India’s top petroleum-producing state. The state accounts for a substantial share of the country’s total crude oil output, contributing nearly fifty per cent. The Barmer-Sanchor Basin, located in the Thar Desert in Rajasthan has been the state’s primary source of crude oil. Cairn Oil & Gas, Vedanta Limited, is the largest private oil and gas exploration and production company in India. It operates Mangala, Bhagyam, and Aishwariya oil fields. These fields collectively form the largest onshore oil production in India. The Mangala field, discovered in 2004, is the largest oil discovery in the country in over two decades and continues to be the backbone of the state’s petroleum output.
2. Gujarat
Gujarat is the second-largest producer of petroleum in India. It contributes to 25-30 per cent of the total crude oil production. The state has several major oil fields, with the most notable being the Cambay Basin. Apart from Cambay Basin, the Ankleshwar, Mehsana, and Kalol fields are integral to Gujarat’s output. Gujarat’s strong industrial base and established petroleum infrastructure contribute significantly to its success in crude oil production. Further, the Oil and Natural Gas Corporation has been a key player in Gujarat’s petroleum sector, with both onshore and offshore operations.
3. Assam
Assam holds a historical and strategic significance in India’s petroleum landscape. The discovery of oil in Digboi marked the beginning of India’s oil industry. Assam is the cradle of Indian petroleum exploration. Today, the state remains one of the largest oil producers, contributing around 12-15 per cent of India’s petroleum output. The major oil fields in Assam are found in the Upper Assam Basin, with notable fields like Duliajan, Moran, Naharkatia, and Lakwa. Assam’s petroleum output is critical to the country’s oil production, though it faces challenges like the ageing of oil fields and declining production rates.
4. Andhra Pradesh
In recent years, Andhra Pradesh has made significant strides in the petroleum sector. The state’s production is driven by its offshore fields in the Krishna-Godavari Basin a hydrocarbon-rich region in the Bay of Bengal. This basin is among the most promising regions for both oil and natural gas exploration. Though primarily known for its natural gas reserves, the KG Basin also contributes to oil production, making Andhra Pradesh a rising player in the national petroleum output.
5. Tamil Nadu
Tamil Nadu, like Andhra Pradesh, is another state benefiting from the Krishna-Godavari Basin. Tamil Nadu also has onshore production, primarily from the Cauvery Basin, which stretches along the eastern coastline. The Cauvery Basin is known for both oil and natural gas reserves, contributing to the state’s petroleum output. ONGC and other private players are actively engaged in exploration and production activities in Tamil Nadu, which accounts for around 2-3 per cent of the country’s total crude oil production.
Future Outlook and Challenges While these states play a crucial role in meeting India’s petroleum demands, the country’s crude oil production has been declining over the years due to depleting reserves. The government is focusing on increased exploration activities and is encouraging private sector participation through various policy reforms such as the Hydrocarbon Exploration and Licensing Policy (HELP). India is also investing in enhanced oil recovery techniques to maximize output from ageing oil fields and exploring deepwater and ultra-deepwater areas. As technology advances and new reserves are discovered, states like Rajasthan and Gujarat are expected to maintain their dominance.
In Conclusion
The petroleum sector remains critical to India’s energy security and economic growth. Rajasthan and Gujarat continue to lead the way, but with growing exploration activities in the Krishna-Godavari Basin, states like Andhra Pradesh and Tamil Nadu are emerging as important contributors. With a strategic focus on boosting domestic production and reducing import dependence, these states will play a vital role in shaping India’s energy future.