The oil and gas sector is one of the six core industries in India and is the fourth-largest energy consumer of oil & gas in the world, accounting for 37 per cent of total energy consumption.
Oil consumption is estimated to reach four million barrels per day (MBPD) by FY16, expanding at a compound annual growth rate (CAGR) of 3.2 per cent during FY08-16. The country has 5.7 billion barrels of proven oil reserves.
India has 19 refineries in the public sector and three in the private sector. India has 9,460 km of crude oil pipelines and 14,083 km of product pipelines. Backed by new oil fields, domestic oil output is anticipated to grow to 1 MBPD by FY16. Gas consumption is likely to expand at a CAGR of 21 per cent during FY08–17.
India’s LNG imports are forecasted to increase at a CAGR of 33 per cent during 2012–17.
IOCL (Indian Oil Corporation Limited) operates 11,214 km network of crude, gas and product pipelines, with a capacity of 1.6 MBPD of oil and 10 million metric standard cubic meters per day (MMSCMD) of gas.
This is around 30 per cent of the nation’s total pipeline network. IOCL is the largest company, operating 10 out of 22 Indian refineries, with a combined capacity of 1.3 MBPD.
Reliance launched India’s first privately owned refinery in 1999 and gained considerable market share (30 per cent). Essar’s Vadinar refinery has a capacity of 20 MMTPA, currently accounting for around 10 per cent of total refining capacity.
Current foreign Investments
According to data released by the Department of Industrial Policy and Promotion (DIPP), the petroleum and natural gas sector attracted foreign direct investment (FDI) worth Rs 31,620 crores (US$ 4.97 billion).
Following are some of the major investments and developments in the oil and gas sector:
Government Initiatives and Future Plans
Some of the major initiatives taken by the Government of India to promote oil and gas sector are:
India being among the world’s fastest growing economies, there has been increasing demand for energy and, if current trends continue, India will be the world’s third largest energy consumer by 2020.
The National Gas Hydrate Programme (NGHP) Expedition-02 and 03 are under advanced stage of planning and are due in the period 2014 - 2017. Under the programme the government plans to core 20 sand prone sites and drill 40 wells.