CRUDE OIL - $76.

26

GAS - $4.22 Per MMBTU

-As on May 12th 2010.

 “The energy scene in the 21st century is going to
see a major shift. Very soon, oil and gas will see its
finiteness. It is high time that we realize this factor
and work towards the fuel of the future.
- Dr. A P J Abdul Kalam,
Former President of India, Address at Energy
Technology Conclave “Technology for
Sustainability”
 The Indian Oil and Gas sector is one of the six
core industries in India and has very significant
forward linkages with the entire economy.
 The oil & gas sector meets more than two third
of the total primary energy needs in the
country. The sector has been instrumental in
putting India on the world map
 At present India is the sixth largest crude oil
consumer in the world and the ninth largest
crude oil importer
 At present Indian refining sector is the sixth
largest in the world.
 In India production of natural gas has
increased over 3 times in the last two decades.
 Nearly 60% of the total primary energy
consumption the world over is accounted by
oil and gas.
 India has vast potential in the Exploration Sector.
 Oil was struck at Makum near Margherita in Assam
in 1867
 First commercial oil was discovered in Digboi in
1889
 Giant Discovery - Bombay High field in 1974 in
west coast offshore
 Public sectors companies, ONGC and OIL have
discovered over 260 oil and gas fields.
 India has 5.6 billion barrels of proven oil reserves
 Oil and Gas Industry Size is estimated at USD 110
bn (about 15% of Indian GDP)
SIZE
 Oil & Gas cater to 45% of India’s primary energy requirements
 Crude oil demand is currently about 146 MMT while the
domestic production of crude is only 34 MMT
 Natural gas demand is currently about 179 MMSCMD while the
domestic supply is only 80 MMSCMD

STRUCTURE
 ONGC and OIL, largest upstream companies, with about 82%
share of the total domestic oil and gas production
 Exploration and Production sector witnessing increased private
sector participation.
POLICY
 100% FDI is allowed in the exploration of Crude Oil and
Natural Gas through the automatic route .

 New Exploration Licensing Policy (NELP) is in place (since

1998) to facilitate private sector participation in Oil and Gas
exploration.

 Coal Bed Methane (CBM) Policy has been formulated which

provides for attractive fiscal and contract terms for the
exploration of CBM blocks
OUTLOOK
 Crude oil demand is likely to increase to about 235 MMT by
2012.
 Gas demand is expected to reach 279 MMSCMD by 2012
POTENTIAL
 Growing demand-supply mismatch provides ample opportunities
for investment
 Exploration and production of crude oil, gas and CBM
 Active promoting and creation of strategic oil and gas reserves
through partnerships with the private sector
 22% of the Indian sedimentary area is unexplored – discovery of oil
fields by investors such as Cairn Energy and “giant” gas fields by
Reliance, ONGC, etc. indicate a large potential for profitable
investment in exploration
 An investment need of US$40 billion is expected in exploration and
production by 2012
 Reliance alone plans to spend over US$10 billion in oil & gas
exploration and production over the next 3 years.
 Increasing urbanization and greater concern for
environment and safety, the share of pipeline
transportation is likely to increase in India
 About 50-60% of the primary transportation of
petroleum products in developed countries is done
through pipelines
 Pipeline network of Indian Oil has grown to 9273
km with a capacity of about 62 million metric
tonnes per year.
 GAIL owns and operates 6700 km. of natural gas
transmission network which is over 82% of the total
pipeline infrastructure in the country.
 India plans to bring 200 of its cities under the
gas pipeline network by 2020.
 India at present uses around 150 million cubic
meter of gas a day.
 At present economic growth rate, consumption
to increase 3 fold by 2012.
 Reserves Production R/P
Place (TCF) (TCF/ Yr) (Years)

World 6263 98 60.3

India 37 1 35
 Resources India World

 Oil 37.4 33.22

 Natural Gas 24.3 9.34
 Coal 25.5 53.54
 Nuclear 6.5 1.04
 Hydel 6.3 2.63
Source : www. planningcommission.gov.in
 9% 6% 1% Coal
Oil
Gas
53%
31% Hydro
Nuclear