oil and gas industry in india

1. SECTORIAL ANALYSIS
OIL & Gas Industry In India
PRESENTED BY-
Natasha Chaudhary
Simran Jaswani
Shubham Singh Chawda
Suyash Gunjal

2. Table Of Content
• Introduction to Oil & Gas Industry in India
• Contribution & Importance in Economy
• Competitive Scenario
• Top Companies & their Relative Share
• Relation to other sectors
• Present Govt. Policy
• SWOT Analysis of 3 Major Companies
• Future Prospects

3. Oil & Gas Industry in India
The oil and gas industry in India dates back to
1889 when the first oil deposits in the country
were discovered near the town of Digboi in the
state of Assam. The natural gas industry in India
began in the 1960s with the discovery of gas
fields in Assam and Gujarat.
India imports 82% of its oil needs and aims to
bring that down to 67% by 2022 by replacing it
with local exploration, renewable energy and
indigenous ethanol fuel. India was the 3rd top net
crude oil importer.

4. • 635 million metric Tonnes (MMT) of proven
oil reserves .
• 54 trillion cubic Feet of proven natural gas
reserves and 96 trillion cubic Feet of
estimated Shale gas reserves.
• Third largest consumer of crude oil and
petroleum products in the world and
second largest refiner in Asia.
• 60% of the prognosticated reserves of
28,000 MMT are yet to be harnessed.

5. CONTRIBUTION TO INDIA
• Industry size
Third largest consumer of crude oil and petroleum products in the world and second largest refiner in Asia.
FDI inflows into the sector totalled $6.7 billion in FY16
• Employment figures
Total manpower employed in oil and gas sector CPSEs at 110,675 (as on March 31, 2016) has been
almost stagnant over the years
Exploration & production vertical accounted for the highest manpower deployment (30%) followed by
marketing (28%) and refinery (23%) as on March 31, 2016
Executive/Managerial categories employed the highest proportion of manpower (54%) followed by
Workmen (31%), Supervisory (9%) and Clerical (6%) accounted for the balance during 2015-16
ONGC and IOCL in 2015-16 together accounted for about 60% of the total manpower employed in the oil
& gas .
• GDP contribution
The natural gas and petroleum sector, which is inclusive of refining, transportation, and marketing of these
products, contributes about 15% to India's GDP.

7. Competitive Scenario
• India became the 3rd largest energy consumer in 2015 and continued
to remain so in 2016.
• In FY17, oil production in the country reached 36.008 million metric
tonnes as compared to 36.942 million metric tonnes in FY16. In 2017-
18, up to October, oil production stood at 21.063 million metric
tonnes. As of 2016, the country had 600 million metric tonnes (MMT)
of proven oil reserves .
• India had 1.2 million cubic metres of proven gas reserves at the end
of 2016 and produced 30.84 BCM of gas in FY17 which is expected to
rise and reach 37 BCM by 2021.

9. Oil Consumption in India
• Oil consumption has expanded at a CAGR of 2.98
per cent during FY2008–17E to reach 4.13 MBPD
by 2017.
• Due to the expected strong growth in demand,
India’s dependency on oil imports is likely to
increase further.
• Rapid economic growth is leading to greater
outputs, which in turn is increasing the demand of
oil for production and transportation
• With rising income levels, demand for automobile
is estimated to increase, in turn leading to
augmented demand for oil and gas

10. Import & Domestic Oil Production in
India
• In FY17, total crude oil imports were
valued at US$ 80.3 billion as compared to
US$ 70 billion in FY16. In FY17, imports
accounted for 82 per cent of the country’s
total oil demand. In FY18, up to January,
crude oil imports stood at 4.04 MBPD.
• In March 2017, the Indian Strategic
Petroleum Reserve Ltd (ISPRL) and Abu
Dhabi National Oil Company (ADNOC) of
UAE signed an agreement, to fill up 0.81
MMT or 5,860,000 million barrels of crude
oil at ISPRL storage facility at Mangalore,
Karnataka.
• According to the Organisation of the
Petroleum Exporting Countries (OPEC),
the demand for oil across the world will
grow by 1.26 million barrels per day.
Moreover, majority of the oil demand
across the globe is expected to originate
from India.

11. Gas Consumption In India

12. Top Companies In India

13. Present Government Policy
State Govt. applies VAT & Central Govt. applies
excise duty on petroleum products rather then
implementing GST on it.
Government generates huge amount of revenue
through petrol and diesel.

14. Since November 2014 has Central Govt has
increased more then 55% of excise duty on
petrol ,whereas State Govt has increased 46%
of VAT.
Even Dealer commission is increased by 73%.
And on Diesel the since 2014, Excise duty is
increased by 154%, VAT by 48% & Dealer
Commission by 73%.
Since 2014 Government has 12 times increased
the Excise Duty.
Source:PPAC

16. SWOT Analysis of IOCL, BPCL &HPCL

19. FUTURE PROSPECTS
Major Investments & FDI Inflows
FDI equity inflows during April
2014-March 2016 increased by
267% (3.7 times) to USD 1.2
billion from USD 327 million
during the same period in 2012-
14.
Major investments since April
2014 are provided in the table.

20. INVESTMENT OPPORTUNITIES
Monetization of 67 discovered small fields thorough international
competitive bidding.
Providing 10 cr. new LPG connections in next 3 years till 2019, of which 5
cr. are for BPL households The Government is focused on providing access
to affordable, reliable, sustainable and modern energy to every citizen.
Increase in India's refining capacity to reach 256.55 MMTPA by 2019-20
after completion of projects under taken by a number of refineries which
are currently under various stages of implementation.
Construction of another 15,000 km of gas pipeline network for completion
of national gas grid, which is currently under various stages of
implementation.
Source- Indian Brand Equity Foundation
PPAC