Greetings of the season and best wishes for a happy, healthy and prosperous new year.
The year 2020 has been a test of resilience for the oil and gas industry. Pushed to the wall by the pandemic induced economic slowdown, the industry learned to navigate through the situation and marshalled its resources to adapt to the unprecedented crisis. Our deep gratitude to the energy soldiers who maintained continuity of operations in the oil and gas industry while working against extremely heavy odds.
The pandemic had adverse impacts on projects, monetization of discoveries, exploration activities, and rendered several ventures unviable. All the same, the period also epitomizes our adaptability and resoluteness. It prodded the industry to innovate, digitalize and re-engineer business processes, and prompted policy makers to roll out initiatives and help the sector to regain the lost pace.
The Government announced Early Monetization Scheme, Andaman offshore project, Resource Assessment Study, and other measures to catalyze the process of unlocking and realizing the country’s resource potential. The early fruits can be seen in the Bengal basin being put on production. Other promising destinations are Kutch and Vindhyan basins with hydrocarbon discoveries, and the vast un-appraised frontier areas.
The process of contractual compliances was greatly simplified under a self-certification and time-bound approval framework for enhancing ease of doing business. Further reforms were ushered in by the Government to encourage domestic natural gas production, by framing guidelines for marketing and pricing freedom for domestically produced gas, following which DGH has empanelled e-bidding agencies.
The Indian economy has strong fundamentals and has shown remarkable resilience and recovery of growth. Petrol and diesel demand has outpaced the pre-COVID levels. In the wake of an encouraging outlook, normalizing demand and operations, we urge all the stakeholders to explore and realize the potential of India’s basins by developing systemic efficiencies and creating competitive vantage positions by digitalization.
India is committed to reducing the carbon footprint while increasing its energy consumption for achieving robust growth. In the roadmap of the country’s transition to cleaner energy mix and gas-based economy in the next few decades, the E&P sector, with its commitment to the environment, would continue to play a pivotal role.
As the upstream advisory body to the Government, Team DGH reaffirms its unwavering commitment to the holistic and sustainable development of the hydrocarbon sector by strengthening systems and forging synergies with all the stakeholders.
At DGH, we value our continued partnership and look forward to working together towards achieving a cleaner and greener energy future.
S. C. L. Das