Industry Analysis On Oil and Gas

Oil and Gas is one of the oldest industries in the world. Oil & Gas industry, also called Energy industry is sub divided into multiple segments- upstream, where crude oil is extracted from oil reservoirs
(could be on land or in sea), midstream (it include the transportation of crude oil to refineries) and downstream (refining the crude oil to manufacture for consumers petroleum products like petrol, diesel, aviation fuel etc. India is the fifth largest energy consumer in the world with primary commercial energy consumption in 2004 was 375.8 Million Metric Tones of Equivalent(MMTOE) (survey 2005). In 2004, the consumption of oil and gas formed a major percentage in the world energy consumption basket. In India, however, coal still dominates the major source of energy. Indian oil and gas industry has emerged as significant contributor in growth of Indian economy. After establishment of New Exploration Licensing Policy (NELP) in 1997 efforts were made to strengthen the industry which include acquisition of oil and gas assets in India and abroad, identifying new oil and gas fields, improving techniques to enhanced oil recovery. Despite of several efforts made by Indian government, India has not made any major breakthroughs in the field of oil and natural gas that has hold a place of key importance in India’s economy. The prospects of Indian oil industry are for more exciting than any other, which India being among the least explored countries in the world at a well density of 20 per 10000 km2. India is the third largest oil consumer in Asia, even though on per capita basis the consumption is mere 0.1 tone per year, the lowest in the region. the 26 sedimentary basins only eight have been explored so far. The petroleum industry has three major components: Upstream,