In recent years, the increase in the economic activity of modern societies has led to an increase in the standard of living and welfare. Economic development is linked to growing pressure on the environment, mainly as the result of the exploitation and use of energy and natural resources, but also as the result of an increase in population, motor vehicle transportation, and new techniques for making agriculture more productive or industry more efficient. One of the major problems of resource analysis is the relative lack of energy products and the fact that some of them are not renewable (for example, petroleum, natural gas). Input–output analysis is a well-established linear economic model often used to account for economic, environmental consequences or impacts following a change in the total output produced by the economy. Economic input-output analysis allows determination of effect of final consumption of a certain commodity on its direct and indirect inputs. In this study, input-output analysis is used for the analysis of CO2, emission. Further the study uses input-output tables of the Indian economy for the years 2003-04 and 2006-07 prepared by the Planning Commission to estimate direct emission from the use of oil and gas resources. The analytical approach used in this study, gives appealing results that can help to design policies that help in identifying the ways to reduce the intermediate consumption of energy, and to reduce the amount of atmospheric pollution that may be caused by inappropriate use of energy. The main objective of this study is to examine the levels of direct emission of CO2 by different sectors by using oil and gas as an input.