Panel Flags Rising PSU Oil Capex Amid Falling Domestic Crude Output

• A parliamentary panel noted rising capital expenditure by PSU oil and gas companies despite declining domestic crude oil production.
• Crude oil output fell from 34.20 MMT in 2018-19 to 28.70 MMT in 2024-25, while capex rose from Rs 1.33 lakh crore to Rs 1.69 lakh crore in the same period.
• Structural challenges like ageing fields, long project cycles, and operational hurdles contribute to stagnant domestic production.
• The panel urged the government and CPSUs to accelerate exploration, reduce approval delays, and prioritise enhanced recovery at mature fields.
• India imports 89% of its crude oil, making it vulnerable to global price fluctuations and geopolitical shifts.

Why It Matters: Despite huge spending, India's oil output falls, making it more reliant on imports.