- Declining Domestic Production: India’s oil production has been declining over time.
- Import Dependence: Significant reliance on imports to meet demand.
- Old Policy Framework: New Exploration and Licensing Policy (NELP) was based on profit sharing.
- This model required auditing of costs, which was complex.
- High Risks/Costs: Offshore exploration/production involves higher risks and costs.
- Pricing Control: Government controlled pricing of gas from legacy fields.
- Lack of New Capacity: The text implies a need for increased domestic production.