- By Abhipsa Barik

Indian Oil Industry ranks second largest in Asia Pacific region

6th largest consumer of petroleum
Oil Industry contributes nearly US$ 13.58 billion to Indian GDP
Per capita petroleum consumption is 2.41 bbl/day per 1000 people
More than 78% of oil requirement is imported

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 By 2030 India would need around 28% of total world energy

Oil demand growing in India at a rate of 5.2%
Importance of oil as source of energy is still increasing as compared to
other sources (Coal, natural gas, hydro power etc)

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Year

Consumption MMTPA

2007-08

130.40

2008-09

132.70

2009-10

135.50

2010-11

137.20

2011-2012

140.70

2012-2013

145.01

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Year

Demand

Supply

Gap

2001-02

99.70

32.03

67.67

2002-03

114.30

33.05

81.25

2005-06

140.00

33.98

106.02

2011-12

199.60

33.47

166.13

2024-25

376.50

61.40

315.1

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 Private & foreign investment are on the rise

FDI in Oil Industry resulting economy growth
Increasing number of international players (approx. investments in India:
Cairn Energy Plc - over US$1 billion, British Gas - over US$ 800 million,
Shell - US$ 650 million, BP - US$ 444 million)
Private and joint venture operations are increasing

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 Investment opportunity under New Exploration licensing policy

Building strategic petroleum reserve through private & public partnership
Acquisition of overseas oil assets
Competition in the downstream (retail & Institutional segment)
Destination India as refining hub due to cost effectiveness
Increasing investment in fuel quality up-gradation.

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 Continuous increase in demand

Hugely depending on import and external sources
Affected by external affairs
Only 40% of potential oil sources have been explored till now
Poor infrastructure and lack of investment
Effect of subsidies on product price
Political conditions and Government policies.

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10

 Crude oil prices move up or down inflation follows in the same direction
Transportation sector hugely affected
Foreign currency reserve reduces with the increase in oil prices
GDP is affected negatively
Share market crumbles
Investment decreases

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 Tapping unconventional oil reserves

- Gas hydrate
- Coal bed methane
- Underground coal gasification
Usages of other energy sources
- Solar Energy
- Natural Gas
Setting up more SEZ for oil refinery and extraction
Improving infrastructural and storage facility
New R & D funding in exploration and production of Oil recovery

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 To cater the increasing demand of energy other sources of energy should be

adopted
Improve in usages of solar, natural gas and environmental friendly energy
sources
Focus more on energy efficiency and conservation
Maintenance of strategic reserves in oil & petroleum
Acquisition of equity & oil gas abroad

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Thank You
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