Oil and Gas

Summary:

  • India is the 3rd largest energy and Oil consumer (5% of global consumption) in the world after China and USA.

  • India has emerged as a major refinery hub and is currently the second largest refiner in Asia with 23 refineries

  • Almost 82% of Crude oil and 46% of LNG is Imported in India.

  • India's projected Oil demand is expected to grow at a CAGR of 4.2% during 2017-2040.

  • Energy demand projected to double to 1,123 million tonnes (in oil equivalents) by 2040.

  • Present share of natural gas in the energy mix of the country is 6%. the aim is to increase it to 15% by 2030.

  • Indian refinery capacity is expected to reach 439 MT by 2030 though several brownfield and greenfield investments.

  • Major threat to the industry includes the increasing adopting of electric vehicles which would impact demand in the transportation sector

Step 1

Upstream (Exploration and Production)

Step 2

Midstream (Transportation)

Step 3

Downstream (Refineries and marketing)

Cost Drivers

Exploration, Excavation

Labor

Capex for plants

Transportation

Revenue Drivers

Electricity;

Transport (CNG, Petrol, Diesel, ATF)

Domestic consumption(LPG)

Industries(Paper Pulp, Chemicals, Metals)

Growth Drivers

INR 7.5 trillion (USD 102.49 billion) government contribution declared towards oil and gas sector over the next 5 years

100% FDI is allowed in the oil and gas exploration activities.

INR 12,480 cr. contribution in Union Budget and other govt. initiatives

Increasing demand for energy in India

Rapid technological advancements

Key Customers

Power companies;

Manufacturing;

Retail customers (for transportation fuel)

Key Players

IOCL

Reliance 

BPCL

HPCL

ONGC 

Channels

Direct sales (mostly B2B)