ONGC ED Anand Sahu expects oil investment fall

The investment levels over the next several years in the oil sector will be significantly lower than the previous 10 year annual average in view of fall in oil prices and relationship between oil prices and upstream investment, according to Executive Director (Exploration and Development Directorate) ONGC Anand Sahu.

Addressing India Energy Forum (IEF)-Observer Research Foundation (ORF) Petro India Conference here on Tuesday, Sahu further said that nearly all the major oil and gas companies have reduced their capital investment budgets for 2015 and are delaying new projects.  With oil prices in the basement, the capital available for exploring new basins is tightening and makes a daunting task for India to reverse the investment trends in upstream sector. 

Sahu also pointed out that the present price level could result in substantially lower annual oil and natural gas investment over the 2015-20 period than the annual average of $122 billion spent during the 2005-14.