German China India

Overview of the Oil & Gas Industry

Securing Energy and Feedstock Supplies for India's Economic Rise

| Editor: Dominik Stephan

Oil and Gas Drilling Automation using Moog ATEX Digital Interface Valve and Manifold.
Oil and Gas Drilling Automation using Moog ATEX Digital Interface Valve and Manifold. (Picture: Depositphotos.com)

India's rise towards becoming an Asian economic powerhub is directly dependent on yupply with crude oil and natural gas. Yet, most of the country's feedstocks come from overseas... Can unexplored reservoirs or unconventional resources stem the tide? Here is an outlook on the Indian production of oil and gas and its effect on the economy

The Core Sector Index, which measures the output of eight infrastructure sectors, rose 2.6 per cent in August 2015, compared with 1.1 per cent in the previous month, according to recently released data. The eight sectors included in the index are coal, steel, cement, natural gas, fertilizer, crude oil, refinery products and electricity.

Seven out of the eight sectors included in the index posted positive growth with natural gas production finally bouncing back into the positive zone after many years of decline reportedly because of falling output from the KG-D6 basin field. Only steel posted negative growth at 5.9 per cent, possibly because of a flood of imports.

Indian crude oil and natural gas sector

The crude oil and natural gas sector is divided into three major segments—upstream, midstream and downstream. The upstream segment is also known as the exploration and production (E&P) sector.

Upstream: crude oil production trails consumption

India’s oil and gas demand is met by imports, which amounts to about 80 per cent. The country consumes nearly 5 per cent of the global crude oil consumption. The Indian oil and gas sector is traditionally dominated by national oil companies. The key focus area for India’s future upstream sector is to increase the domestic production by encouraging exploration to meet the demand.

Blessing or Curse? The Impact of Global Crude Oil Prices on India's Industry

Oil Prices

Blessing or Curse? The Impact of Global Crude Oil Prices on India's Industry

26/01/2016 - Global crude prices have fallen by nearly 55 per cent since June 2014 primarily owing to over-supply and sluggish demand caused by economic slowdown in China. Global benchmark Brent crude price has fallen from $111.80 per barrel in June 2014 to $46.58 per barrel in August 2015. As approximately 85 per cent of Indian refineries’ throughput requirement is met through imports, the price of the Indian basket of crude too has fallen by 57 per cent during the said period reflecting the global trend. This has impacted not only the Indian refining industry but also the up-stream oil and gas industry as well as the Indian economy as a whole. read...

The introduction of New Exploration Licensing Policy (NELP) has proved to be successful in attracting the interests of national oil companies as well as private domestic along with a few overseas players.

Additional Information
 
Opportunities in India's Exploaration and Production Sector

Crude oil

The crude oil production in 2014–15 (till December 2014) was about 28.171 million metric tonne (MMT). In 2014–15, the share of offshore crude oil production was about 50.2 per cent. The remaining crude oil production was from states such as Rajasthan and Gujarat. Crude oil accounts for about 28 per cent of the total energy basket of the country.

Crude oil production has more or less remained stagnant over the last few years; it is expected to increase in the coming years with new production wells coming up in 2017–18.

Comments are being loaded ....

Leave a comment

The comment is checked by an editor and will be released soon.

  1. Avatar
    Avatar
    Edited by at
    Edited by at
    1. Avatar
      Avatar
      Edited by at
      Edited by at

Comments are being loaded ....

Report comment

Kommentar Freigeben

Der untenstehende Text wird an den Kommentator gesendet, falls dieser eine Email-hinterlegt hat.

Freigabe entfernen

Der untenstehende Text wird an den Kommentator gesendet, falls dieser eine Email-hinterlegt hat.

copyright

This article is protected by copyright. You want to use it for your own purpose? Contact us via: support.vogel.de/ (ID: 43973512 / Oil & Gas)