Oil and Gas Industry

Submitted By:-

Shalini.I

INTRODUCTION OF OIL & GAS INDUSTRY

• Oil and gas are amongst the most important resources that we have.

• The Indian oil and gas sector is one of the six core industries in India.

• The Indian oil and gas sector is of strategic importance and plays a predominantly pivotal role in influencing decisions in all other spheres of the economy.

LEGAL ASPECTS OF OIL AND GAS INDUSTRY

• Oil and Gas sector is divided into 3 parts

• Upstream

• Midstream

• Downstream

• OilandGasIQ.com is the online portal dedicated to providingthe latest intelligence for the oil and gas communityworldwide

USAGE OF OIL AND GAS IN EVERYDAY LIFE

• Today there are over 6,000 products refined from Natural Gas and Crude Oil.

COMPANIES IN OIL AND GAS INDUSTRY

MARKET SHARE OF OIL AND GAS COMPANIES

28%

22%20%

18%

11%

1%

Market Share of Oil and Gas Companies

IOCL

ONGC

Reliance

HPCL

BPCL

Others (GAIL, OIL)

LEVEL OF COMPETITION

• Level of competition generally refers to the life cycle of the Indian Petroleum and Gas Industry.

• Out of four stages, namely initiation, growth, maturity and stagnation, Indian Oil and natural Gas Industry is in its growing phase.

FLOW OF FOREIGN INVESTMENTS

• FDI Policy

• Private & Foreign Investments are on the rise

GOVERNMENT POLICIES AND REGULATIONS

• The Petroleum Act to control issues relating to import, transport, storage, production, refining and blending of petroleum was already in place since 1934.

• Hydrocarbon Vision

• Regulatory Bodies

• Section 11 and 12 of the PNGRB Act, 2006 states the functions and powers

• TAXATION

ENVIRONMENTAL EFFECTS

• Global Warming

• Extraction

• Oil Spills

• open-boat whaling.

Diesel fuel spill on a road

SWOT Analysis of Indian Oil & Gas Industry

Strengths•Strong economic growth• Alternate options• Demand for petroleum products• Scope of Conservation•High exploration of portfolio•Increase in demand for oil and gas

Weaknesses• High import dependence• Late start in acquisition • Geo-political disturbance•Self defeating policy

Opportunities• Supply channels• Interdependence nations•Technology• New sources•Growing market • collaborations• frontier markets

Threats• Production Stagnation • Ever increasing demand • Increasing competition •Lack of regional Institutions• Terrorism•Environment concerns

PEST Analysis Of The Oil And Gas Sector In India

SOCIAL & TECHNOLOGICAL

POLITICAL & ECONOMICAL

• Macro-economic factors (e.g. Oil Prices & Fiscal regime instability)

• Non-standard legal & environmental regulatory frameworks

• Financial and other resource constraints

•Non existence of expertise in new service offerings and emerging technologies

•Non-integrated operations at the organizational level

Current ratio

0

0.5

1

1.5

2

2.5

3

3.5

2010 2011 2012 2013 2014

OIL

HPCL

BPCL

ONGC

IOCL

Conclusion

• The Indian oil and gas sector is one of the six core industries inIndia and has very significant forward linkages with the entireeconomy. Government has taken many steps to regulate it.The Steps are also taken to increase the Indigenous oil and gasreserves.

• Although there are few loopholes which should be taken careof as soon as possible, one major drawback in the E&P sectoris that the Regulatory Body (DGH) does not have any statutoryvalue. The decisions of the DGH are merely advisory in natureand the Government is not to follow them.

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