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Executive Summary FINAL

The oil and gas industry contributes significantly to India's GDP, though India currently imports 82% of its oil needs. Key state-owned players in India include ONGC, IOCL, and GAIL. Private players also have a growing market share, such as Reliance Petroleum and NAYARA Energy. India's energy demand is expected to grow faster than other major economies due to continued robust economic growth. The government has implemented policies to attract investment and meet this rising demand, including allowing 100% FDI in many industry segments. India's share of global energy demand is projected to increase to 11% by 2040 from 5.58% currently.

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Arpita Saran Yadav
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63 views2 pages

Executive Summary FINAL

The oil and gas industry contributes significantly to India's GDP, though India currently imports 82% of its oil needs. Key state-owned players in India include ONGC, IOCL, and GAIL. Private players also have a growing market share, such as Reliance Petroleum and NAYARA Energy. India's energy demand is expected to grow faster than other major economies due to continued robust economic growth. The government has implemented policies to attract investment and meet this rising demand, including allowing 100% FDI in many industry segments. India's share of global energy demand is projected to increase to 11% by 2040 from 5.58% currently.

Uploaded by

Arpita Saran Yadav
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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EXECUTIVE SUMMARY

INDUSTRY OVERVIEW

Oil and gas industry is considered the biggest industry in terms of dollar value and are so
vital they often contribute a significant amount towards national GDP. Global oil production
in 2019 averaged 80,622,000 barrels per day. In India this industry dates back to 1889 when
the first oil deposits were discovered near the town of Digboi in the state of Assam. The
natural gas industry began in the 1960s when gas fields were discovered in Assam and
Gujarat. India had estimated crude oil reserves of 594.49 million tonnes (MT) and natural gas
reserves of 1339.57 billion cubic meters, as on 31st March 2018. Natural gas gained further
momentum after the discovery of large reserves in the South Basin fields by ONGC in the
1970s. Currently 82% of India’s oil needs are imported, majorly from Russia. And it aims to
bring that down to 67% by 2022.

After several years of oversupply, the oil and gas industry could be very well moving into
supply crunch. After being limited to a range between $40s and $50 per barrel, it is now
trading above $70.

PLAYERS’ PROFILE

The Oil & Gas Industry is dominated by some of the big key players in this field. The whole
industry is divided in three major sector, namely upstream which consists of oil exploration
and drilling, mid-stream which consists of oil and gas transportation and the downstream
which includes all the refineries and the end products that is generated from crude oil or gas.
In this report we have segregated the players in two categories namely domestic and
international player. In India, this industry is mostly lead by state owned firms but some of
the big private players also have a significant market share. Major state-owned firms that lead
the market are ONGC, IOCL, Oil India Ltd, BPCL, GAIL etc. ONGC and IOCL also have a
prominent presence in international market. Some of the key private players in domestic field
are TATA Petrodyne Limited, CAIRIN India Limited, Reliance Petroleum Ltd, NAYARA
Energy etc.

MACROECONOMIC

Energy demand of India is anticipated to grow faster than energy demand of all major
economies, on the back of continuous robust economic growth. Thus, Government of India
has adopted several policies to fulfill this increasing demand. The government has allowed
100 percent Foreign Direct Investment (FDI) in many segments of the sector, including
natural gas, petroleum products, and refineries, among others. Today, it attracts both
domestic and foreign investment, as attested by the presence of Reliance Industries Ltd (RIL)
and Cairn India. Consequently, India’s energy demand as a percentage of global energy
demand is expected to rise to 11% in 2040 from 5.58% in 2017. Crude oil consumption is
expected to grow at a CAGR of 3.60% to 500 million tonnes by 2040 from 221.76 million
tonnes in 2017. Natural Gas consumption is forecasted to increase at a CAGR of 4.31% to
143.08 million tonnes by 2040 from 54.20 million tonnes in 2017.

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