At the time of independence production of petroleum and natural gas was almost negligible. Presently India is producing around 87 million standard cubic meters per day.
Being the most preferred fuel due to its inherent environment friendly nature, greater efficiency and cost effectiveness Natural gas has become an important source of energy and feedstock for major industries. Due to its growing importance and demand Natural gas is termed as the Fuel of the 21st Century. The exploration and production activities in have led to a spectacular increase in the output of oil. Currently, India produces 35 million tonnes of crude oil, two-thirds of which is from offshore areas, and imports another 27 million tonnes. Refinery production in terms of crude oil output is about 54 million tonnes from the existing refineries. The production of Natural gas has also increased considerably in recent years, with the country producing over 22,000 million cubic metres. Presently, there are a total of 18 refineries in the country comprising 17 in the Public Sector, one in the private sector. In order to develop the oil and natural gas resources in the various regions of the country as part of the Public Sector development Oil and Natural Gas Directorate was set up in1955 by the Government of India. By virtue of Industrial Policy Resolution adopted by the Government of India, the future development of mineral oil industry came under the sole and exclusive responsibility of the state. The Oil and Natural Gas Directorate attained the status of commission with enhanced powers in 1956. The Oil and Natural Gas Commission aims ‘to plan, promote, organize and implement programmes for development of Petroleum Resources and the production and sale of petroleum and petroleum products produced by it, and to perform such other functions as assigned by the Central Government.
Petroleum and Natural Gas Regulatory Board was constituted under the Petroleum and Natural Gas Regulatory Board Act, 2006 to regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas excluding production of crude oil and natural gas so as to protect the interests of consumers and entities engaged in specified activities relating to petroleum, petroleum products and natural gas and to ensure uninterrupted and adequate supply of petroleum, petroleum products and natural gas in all parts of the country and to promote competitive markets and for matters connected therewith or incidental thereto. http://petroleum.nic.in/