India’s oil minister says country ‘will do whatever is required’ to boost crude output

India’s petroleum and natural gas minister has said that the country needs to step up its efforts to produce crude as prices continue to rise.

The country’s demand for hydrocarbons is set to remain high over the coming years, despite its push to increase its renewable energy capacity.

“Somehow, there has been an underinvestment in this area and I can say, from the Indian point of view, certainly we can do much more in exploration and production,” said Hardeep Singh Puri on Friday.

He was speaking at the CeraWeek India Energy Forum organised by IHS Markit.

“It has to be a process that will go on simultaneously: that we move to green energy but we also utilise traditional energy.”

He said that India “will do whatever is required” to boost domestic oil and gas production. The country has 26 sedimentary basins but only eight are under exploration.

“Now, when a government makes a statement to that effect, it indicates a statement of intent that we propose in a very focused, time-bound manner to subject the other sedimentary basins to exploration,” Mr Puri said.

India imports about 85 per cent of its oil requirements and rising oil prices are a challenge as they affect the trade deficit. The country is concerned about its energy security as its demand for power is expected to increase amid an expanding economy.

Mr Puri said last week that Opec should raise output to control rising prices.

On Friday, he again issued a warning, saying that “high energy prices will certainly, if not checked, have a likely effect on the global economic recovery”.

“I am hoping that people all over the world will realise that it is a win-win only if the price matrix is responsive both to the requirements of the producing and consuming countries,” he said.

Brent, the global benchmark for more than half of the world’s crude, was trading above $85 a barrel on Friday evening UAE time.

The price has rallied more than 60 per cent this year amid widespread concerns around a worldwide energy crisis.

Mr Puri said other parts of the world should invest more in the hydrocarbons sector while developing renewable energy solutions at the same time.

Analysts, including top US economist Nouriel Roubini, have forecast that oil prices could hit $100 a barrel by the end of this year due to a lack of investment in the hydrocarbon sector as the world focuses on the switch to clean energy to cut carbon emissions.