Indian Petroleum Industry started its journey during the fiscal year 1890 in the north-eastern provinces of India especially in the place called Digboi. The production of petroleum along with the exploration of new sites was primarily restricted to north-eastern India up to the 1970s. But the scenario changed drastically with the discovery of Bombay High. Indian Petroleum Industry was entirely state sponsored and was under the management control of all the industries involved in it were entirely with the government.
After the inception of the Liberalization-Privation-Globalization (L-P-G) policy in the month of July, 1991, the government had started allowing the Indian Petroleum Industry to go into private as well as government-private joint ventures. The deregulation process in the Indian Petroleum Industry got a boost in the year 1997 when it was decided that the process of liberalization and deregulation would be accelerated in this industry and all the regulations would go away from the month of April in the year 2002.
Along with globalisation, the rate of growth of the economy along with the rate of growth of energy consumption increased at the rate of six percent on an yearly basis especially between the period 1991 and 2001. The demand for petroleum products increased at an annual rate of 5.5% during 1990-91 and 2000-01 which is more than that of the production rate of crude oil processing (revolving around 5.1 %). But Indian Petroleum Industry stumbled a bit in the year 201 when the Indian economy observed a slow down in its economic rate along with the overall industrial output. Impediments related to infrastructure also came up as serious problems in the path of Indian Petroleum Industry.
Facts related to the Indian Petroleum Industry
• Amount of petroleum used for generation of energy grew from 51.27 million tonne during 1990-91 to 128.8 million tonne during 2005-2006. • Indian Petroleum Industry grew at a tremendous pace between the period 2000 and 2006. During the mentioned period, the production of petroleum products increased from 95.61 million tonne during 2000-2001 to 119.75 million tonne during 2005-2006.
Petroleum Industry is considered to be the back bone of an economy because this is the main source of energy till date. Any economy around the world would fail to proceed a single step in the absence of Petroleum Industry.
Thus, before using this energy source, the crude petroleum is required to be refined in the petroleum refineries for extracting various fractions for energy generation namely, petrol, natural gas, kerosene, asphalt and many more.
Production of petroleum by the Petroleum Industry in USA has come up as a huge contributer to the total petroleum production in the world. It has been observed that its contribution amounts to almost 25 % of the total production of petroleum globally
The most important part of the Petroleum Industry is the Petroleum Refining Industry which refines the crude oil to convert it to the usable fuel. It also derives many derivative products out of the crude petroleum like natural gas, naphtha, etc which can be used in various ways.
Petroleum is basically a non-renewable form of fuel which is subject to extinction from the world after a certain point of time.
The price of petroleum is determined by the demand-supply mechanism around the globe. Petroleum is not a domestic product and any kind of shortage in the same has serious ramifications on all possible industries along with the economies all over the world.
Petroleum Industry always need to perform exploration research all over the world for finding more petroleum sites which also become instrumental in the setting up Petroleum Industry Trends around the world.
The India Petroleum Industry is a case in point for exhibiting the giant leapsIndia has taken after its independence towards its march to attain a self-reliant...