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Oil And Gas Industry Report Transcript
1. Introduction
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 tons 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 search for new oil reserves. But the Government of India declared the Oil industry in India as the core sector industry under the Industrial Policy Resolution bill in the year 1954, which helped the Oil Industry in India vastly.
Oil exploration and production in India is done by companies like NOC or National Oil Corporation,
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 tons 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 search for new oil reserves. But the Government of India declared the Oil industry in India as the core sector industry under the Industrial Policy Resolution bill in the year 1954, which helped the Oil Industry in India vastly.
Oil exploration and production in India is done by companies like NOC or National Oil Corporation,
ONGC or Oil and Natural Gas Corporation and OIL who are actually the oil companies in India that are owned by the government under the Industrial Policy Rule. The National Oil Corporation during the 1970s used to produce and supply more than 70 percent of the domestic need for the petroleum but by the end of this amount dropped to near about 35 percent. This was because the demand on the one hand was increasing at a good rate and the production was declining at a steady rate.
Oil Industry in India during the year 2004-2005 fulfilled most of demand through importing oil from multiple oil producing countries. The Oil Industry in India itself produced nearly 35 million metric tons of Oil from the year 2001 to 2005. The Import that is done by the Oil industry in India comes mostly from the Middle East Asia.
Oil Industry in India during the year 2004-2005 fulfilled most of demand through importing oil from multiple oil producing countries. The Oil Industry in India itself produced nearly 35 million metric tons of Oil from the year 2001 to 2005. The Import that is done by the Oil industry in India comes mostly from the Middle East Asia.
The Oil that is produced by the Oil Industry in India provides more than 35 percent of the energy that is primarily consumed by the people of India. This amount is expected to grow further with both economic and overall growth in terms of production as well as percentage. The demand for oil is predicted to go higher and higher with every passing decade and is expected to reach an amount of nearly 250 million metric ton by the year 2024. (economywatch,n.d.)
DEMAND AND SUPPLY
1Demand and Supply of Crude oil
• Domestic production of crude oil fell from 34.11 MT in 2007-08 to from 33.50 MT in
2008-09.
• Refinery production in terms of crude throughput increased to 160.77 MT in 2008-09
as compared to 156.10 MT in 2007-08.
• The projected production of crude oil during the 11th Five-Year Plan (2007-2012) is
206.76 MMT, while that of natural gas is 255.27 BCM.(IBEF, 2009)
crude oil MMT
year Demand supply gap
2001-02 99.7 32.03 67.67
2002-03 114.3 33.05 81.25
2005-06 140 33.98 106.02
2011-12 199.6 33.47 166.13
2024-25 376.5 61.4 315.1
2.Demand and Supply of Natural Gas
• The production of natural gas went up to 32.84 billion cubic meters tones (BCM) in 2008-09, from 32.40 BCM in 2007-08.
• Production of gas from Reliance Industries' eastern offshore KG D-6 fields, with a life of 11 years, started on April 1, 2009 and will increase to 80 million standard cubic meters per day (MSCMD) by the end of the year. Production will help save US$ 9 billion in oil import.
• Gas demand in India is dominated by the power and fertilizer sectors which account for 66 per cent of the current consumption. In 2006, the total gas demand was around 152 MSCMD. The gas demand is expected to increase to 320 MSCMD, according to a report by Ernst & Young.
• ONGC has struck oil and gas in three new blocks. The gas find at Krishna Godavari (K-G) basin off the Andhra coast could prove as rich as the Reliance Industries’ D-6 block, which, at its peak, is expected to double India’s current natural gas output.(IBEF, 2009)
1Demand and Supply of Crude oil
• Domestic production of crude oil fell from 34.11 MT in 2007-08 to from 33.50 MT in
2008-09.
• Refinery production in terms of crude throughput increased to 160.77 MT in 2008-09
as compared to 156.10 MT in 2007-08.
• The projected production of crude oil during the 11th Five-Year Plan (2007-2012) is
206.76 MMT, while that of natural gas is 255.27 BCM.(IBEF, 2009)
crude oil MMT
year Demand supply gap
2001-02 99.7 32.03 67.67
2002-03 114.3 33.05 81.25
2005-06 140 33.98 106.02
2011-12 199.6 33.47 166.13
2024-25 376.5 61.4 315.1
2.Demand and Supply of Natural Gas
• The production of natural gas went up to 32.84 billion cubic meters tones (BCM) in 2008-09, from 32.40 BCM in 2007-08.
• Production of gas from Reliance Industries' eastern offshore KG D-6 fields, with a life of 11 years, started on April 1, 2009 and will increase to 80 million standard cubic meters per day (MSCMD) by the end of the year. Production will help save US$ 9 billion in oil import.
• Gas demand in India is dominated by the power and fertilizer sectors which account for 66 per cent of the current consumption. In 2006, the total gas demand was around 152 MSCMD. The gas demand is expected to increase to 320 MSCMD, according to a report by Ernst & Young.
• ONGC has struck oil and gas in three new blocks. The gas find at Krishna Godavari (K-G) basin off the Andhra coast could prove as rich as the Reliance Industries’ D-6 block, which, at its peak, is expected to double India’s current natural gas output.(IBEF, 2009)
Natural Gas MMSCMD
year demand supply Gap
2001-02 151 81.4 69.6
2006-07 231 94.84 136.16
2011-12 313 158.05 154.95
2024-25 391 170 221
3. Yawning Demand-Supply Gap : Need to
a. Intensify exploration efforts to convert the remaining hydrocarbon reserves to established reserves
b. Increase recovery factor of producing fields
c. Tie up crude oil and gas imports – laying of transnational pipelines
d. Explore new technologies like coal gasification, coal to oil conversion, gas hydrates exploration, coal bed methane extraction etc.
year demand supply Gap
2001-02 151 81.4 69.6
2006-07 231 94.84 136.16
2011-12 313 158.05 154.95
2024-25 391 170 221
3. Yawning Demand-Supply Gap : Need to
a. Intensify exploration efforts to convert the remaining hydrocarbon reserves to established reserves
b. Increase recovery factor of producing fields
c. Tie up crude oil and gas imports – laying of transnational pipelines
d. Explore new technologies like coal gasification, coal to oil conversion, gas hydrates exploration, coal bed methane extraction etc.
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