New Delhi, Sept 29 (UNI) State-owned upstream major Oil and Natural Gas Corporation (ONGC) has said global crude oil prices will continue to rise since the new oil finds are being discovered in logistically difficult areas, entailing huge capital expenditure.
''The incremental cost of the oil and gas reserves is a cause of worry. All new discoveries are coming up in logistically difficult areas, so cost of production is getting higher,'' company's Chairman R S Sharma said in a seminar.
In addition, the Chairman said there is a need to find more oil and gas reserves and improve the recovery factor for bridging the demand-supply mismatch in the country.
''Our effort is to make the energy sources available at an affordable and sustainable basis. The New Exploration Licencing Policy (NELP) is doing an excellent job. The new reserves which are being discovered is a matter of assurance to bridge the mismatch,'' Mr Sharma said.
ONGC is making all possible efforts to develop its marginal fields, Mr Sharma said adding that this will help bring out additional production.
He said the prominence of gas is coming up steadily in the country, but coal still marks the entire energy scenario in India.
''Nearly 73 per cent of the hydrocarbon reserves are in OPEC countries with the predominace of state-owned companies,'' he said.