Even though the 10-month-long slump in global crude prices has come as a boon to India's overall economy, the country's major E&P companies are still reeling under its adverse impact. To measure the extent of the collective loss to these companies, one needs to look at the crude oil scenario in India. Total production in India during fiscal 2013-14 was just about 37.788 MMt, and its demand almost three times as much. While indigenous production has remained stagnant over the past few years, the demand for petroleum products has been on the rise continuously, necessitating higher and higher imports each year. India spent $125 billion annually, or thereabout, during the past five years on the import of crude, alone. Now with the price hovering around $60/bbl, this huge yearly burden has come down almost 50%, thus saving India nearly $65 billion to $70 billion every year, thereby reducing its trade deficit substantially.
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