Oil and Gas Industry in India
Base your report on the “Diamond Model” framework of Porter, and the analysis of international business risks as presented in the textbook.
* Factor conditions are human resources, physical resources, knowledge resources, capital resources and infrastructure.Specialized resources are often specific for an industry and important for its competitiveness. Specific resources can be created to compensate for factor disadvantages. * Demand conditions in the home market can help companies create a competitive advantage, when sophisticated home market buyers pressure firms to innovate faster and to create more advanced products than those of competitors. * Related and supporting industries can produce inputs which are important for innovation and internationalization. These industries provide cost-effective inputs, but they also participate in the upgrading process, thus stimulating other companies in the chain to innovate. * Firm strategy, structure and rivalry constitute the fourth determinant of competitiveness. The way in which companies are created, set goals and are managed is important for success. But the presence of intense rivalry in the home base is also important; it creates pressure to innovate in order to upgrade competitiveness. * Government can influence each of the above four determinants of competitiveness. Clearly government can influence the supply conditions of key production factors, demand conditions in the home market, and competition between firms. Government interventions can occur at local, regional, national or supranational level. * Chance events are occurrences that are outside of control of a firm. They are important because they create discontinuities in which some gain competitive positions and some lose. DIAMOND MODEL : http://www.vectorstudy.com/management_theories/diamond_model.htm
* According to Porter, a nation attains a competitive advantage if its firms are competitive. Firms become competitive through innovation. Innovation can include technical improvements to the product or to the production process.
Human Development Index
Population is high therefore easy to find both blue collars and highly talented work force OIL & GAS
India, in 2004-2005, met 75 %of its crude oil demand through imports. The domestic production of crude oil has been in the range of 30-34 Million Metric Tons from 2001-2005. About 60 % of its crude import is from Middle East. - The consumption of natural gas grew at a CAGR of 2.7 % in the period 1999-2005, supported by rise in availability through domestic and imported sources of gas. - Oil comprises 36 % of India’s primary energy consumption in 2005, and is expected to grow both in absolute and percentage terms driven by overall economic growth. Growth in demand is expected to catapult the overall demand to 196 Million Metric Tons in 2011-2012 and 250 Million Metric Tons in 2024-25. - Demand for oil is expected to grow from 119 Million Tons Oil Equivalent (MTOE), from 2004, to 250 MTOE, during 2025, at an annual growth of 3.6%. During the same period domestic production from existing developed reserves is expected to grow at approximately 2.5 %. - Natural gas comprises 9 % of India’s primary energy consumption at present and it will be 14% of energy mix by 2010. Demand for natural gas is also likely to increase at an annual growth rate of 7.3%.
An Introduction to Oil Industry in India
After the Indian Independence, the Oil Industry in India was a very small one in size and Oil was produced mainly from Assam and the total amount of Oil production was not more than 250,000 tonnes per year . |
This small amount of production made the oil experts from different countries predict the future of the oil industry as a dull one and also doubted India's ability to...
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