During the visit of the US President Barack Obama, a MoU on transfer of shale gas technology to India is likely to be signed.

Addressing the Economic Editors' Conference in New Delhi on Wednesday, the Union petroleum minister, Murli Deora said : “It has also been decided that in case of high rise volatility in global oil prices, the government will suitably intervene in pricing of petrol and diesel. As of now, the oil companies are free to take suitable decisions on pricing of petrol on the basis of international oil prices, market conditions and commercial considerations.”

In the light of the recommendations made by the Kirit Parikh Committee and after detailed deliberations, the price of petrol was deregulated, both at the refinery gate and at the retail level from June 26, 2010. The prices of diesel have been raised by Rs 2 per litre and domestic LPG by Rs 35 per cylinder and kerosene distributed through public distribution system (PDS) by Rs 3 per litre. This move has contributed to the inflation in prices of essential commodities.

The country imports 80% of petroleum products to meet its needs. Fossil oil and gas account for more than 40% of the country's energy needs.

The minister informed that in 2010-11 there will be an additional increase of 12.6% in crude oil and 12.80% of natural gas production in the country. The 15 new oil discoveries by ONGC, OIL and private and joint sector companies in 2009-10 have already increased crude oil production by 11% and natural gas production by 53%.

The indigenous production of crude oil is projected to increase to 37.96 million tonne in 2010-11. Natural gas availability would be 146.82 mmscmd in the same fiscal year.

India is now on the world oil and gas map. Under the eight rounds of new exploration licensing policy (NELP), production sharing contracts (PSCs) have been signed for 235 blocks. As on Oct 1, 2010, total investment made on NELP by India and foreign companies is to the tune of $14.8 billion. With the conclusion of the fourth round of coal bed methane (CBM), government has signed 33 contracts. Commercial production of CBM gas in India has now become a reality with current CBM gas production of about 100,000 cubic metre per day.

The ninth round of NELP was launched in October 15, 2010 to offer bids for 34 oil and gas blocks covering an area of 88,807 sq km.

As on April 1, 2010 domestic refinery capacity has been augmented to 185.40 million tonne per year.

The Indian public sector, ONGC Videsh Ltd (OVL), which had acquired seven blocks in seven countries, produced about 8.87 million tonne of oil and oil equivalent gas in 2009-10 from its assets in Sudan, Vietnam, Venezuela, Russia, Brazil, Syria and Colombia. A consortium of OVL, OIL and IOCL and others have acquired a 40% ownership interest in a subsidiary in Venezuela. The upstream production facilities are expected to produce around 400,000 barrels per day of extra heavy oil. This would further contribute to the energy security of the country.