Oil & Gas Industry Analysis - India
Personal study
Oil and Gas India
An Overview
Sahil Jain 11/17/2012
Introduction
India imports roughly 75 percent of its total oil consumption and the remaining 25 percent is primarily produced by National Oil Companies (NOCs). Concerned by the alarming increase in our oil import bill, the government has taken several steps to reduce our dependency on imported oil. But even after more than a decade of introduction of policies like the New Exploration Licensing Policy (NELP, 1997-98) and allowing 100 percent FDI in Exploration and Production (E&P), the supply of indigenously produced oil has not been able to keep-up with the rapidly increasing demand.
Indicator Life Cycle Stage Capital Intensity Industry Assistance Concentration Level Regulation Level Technology Change Barriers to Entry Revenue Volatility
Rating Mature High High High High Low High Low
Comment The Indian Oil production is growing steadily but at a low rate of 1.78% while natural gas is at 7.39% High capital requirements The share of Petroleum sector in total Govt. subsidy has been increasing and so is the under-recoveries by Oil companies ONGC produces 75% of India 's Crude Oil, while OIL produces another 10%. The average HHI over has been 0.65 for the period 2002-10 Prices of transportation fuel (Petrol and Diesel), PDS Kerosene and domestic gas are controlled by the govt. The per person productivity has shown a very slow growth in the past years High capital requirements, Delay in approvals from various ministries Growth in production of oil has almost been linear while that of natural gas has shown sharp uptrend in the last couple of years
The industry remains regulated as the price of transportation fuel, PDS Kerosene and Domestic LPG is controlled by the government, though the government has shown interest in coupling domestic prices with the global oil prices.
Crude Oil Productivity
270.00 260.00 Tonnes per person 250.00 240.00 230.00 -3.26% 220.00 -8.65% 210.00 2004
Oil and Gas India
An Overview
Sahil Jain 11/17/2012
Introduction
India imports roughly 75 percent of its total oil consumption and the remaining 25 percent is primarily produced by National Oil Companies (NOCs). Concerned by the alarming increase in our oil import bill, the government has taken several steps to reduce our dependency on imported oil. But even after more than a decade of introduction of policies like the New Exploration Licensing Policy (NELP, 1997-98) and allowing 100 percent FDI in Exploration and Production (E&P), the supply of indigenously produced oil has not been able to keep-up with the rapidly increasing demand.
Indicator Life Cycle Stage Capital Intensity Industry Assistance Concentration Level Regulation Level Technology Change Barriers to Entry Revenue Volatility
Rating Mature High High High High Low High Low
Comment The Indian Oil production is growing steadily but at a low rate of 1.78% while natural gas is at 7.39% High capital requirements The share of Petroleum sector in total Govt. subsidy has been increasing and so is the under-recoveries by Oil companies ONGC produces 75% of India 's Crude Oil, while OIL produces another 10%. The average HHI over has been 0.65 for the period 2002-10 Prices of transportation fuel (Petrol and Diesel), PDS Kerosene and domestic gas are controlled by the govt. The per person productivity has shown a very slow growth in the past years High capital requirements, Delay in approvals from various ministries Growth in production of oil has almost been linear while that of natural gas has shown sharp uptrend in the last couple of years
The industry remains regulated as the price of transportation fuel, PDS Kerosene and Domestic LPG is controlled by the government, though the government has shown interest in coupling domestic prices with the global oil prices.
Crude Oil Productivity
270.00 260.00 Tonnes per person 250.00 240.00 230.00 -3.26% 220.00 -8.65% 210.00 2004
References: www.eia.gov/forecasts/ieo/pdf/0484(2011).pdf http://media.ft.com/cms/33558890-98d4-11e0-bd66-00144feab49a.pdf http://www.forbes.com/pictures/mef45glfe/not-just-the-usual-suspects-2/ http://petroleum.nic.in/pngstat.pdf http://petroleum.nic.in/petstat.pdf http://www.dghindia.org/pdf/09-10.pdf http://www.dghindia.org/pdf/DGH-Annual%20Activity%20Report-2010-11.pdf http://www.dghindia.org/pdf/1DGH%20Annual%20Report%202011-12.pdf http://dipp.nic.in/English/Policies/FDI_Circular_01_2012.pdf Disclaimer: This study is based on data freely available on the internet and is not sponsored by any organization. This study is for information purposes only. Though due care has been taken during the compilation of this data, it is not to be construed as a substitute to professional advice.