Oil & Gas Industry in India 2021: Market Size, Key Players, Recent Plans

Abinaya Arangarajan Abinaya Arangarajan
Sep 18, 2021 6 min read
Oil & Gas Industry in India 2021: Market Size, Key Players, Recent Plans

The Oil and Gas Industry has been playing a vital role in the development of the Indian Economy as well as being a crucial sector among the eight core industries in India. Apart from the agricultural, Automobile, Chemical and other major industry sectors, the oil & gas industry lobbying an impact on the Indian economy since its commencement.

Back in time, people considered petroleum, gas, oil, diamonds, gold and other high-priced metals, as a source of income in trading them. Moreover, India stands as the 3rd Largest consumer of oil in the world and fourth place as the biggest refiner in the world.

The industry accomplishes every task which they have planned to do prior to the deadline, and ultimately became an on-demand energy industry globally. Whereas, India was the second top net crude oil products importer as of 2019. Regardless, the industry is also planning to enhance as much as an investment to result in the top oil & gas industry in the world.

The journey began in 1889, when India discovered the first oil deposits and gas fields in the town of Digboi, Assam. Later, India magnified the natural gas and oil industry in the 1960s and dilated the services to a pinnacle industry and eventually bolstered the economy as a prominent industry in India.

The Oil and Gas Industry in India built reserves & Petrol stations etc. Besides, it cast the Indian economy in good terms of Imports, trading, refining, consumption, distribution and foreign trade.

Classification of Oil & Gas Industry in India
Market size of Oil & Gas Industry in India
Recent plans of the Oil & Gas Industry in 2021
Key Players to look out for in the Oil & Gas Industry in India
FAQ

Classification of Oil & Gas Industry in India

Upstream Companies:

The Oil and Gas Industry in India looks for dormant underground crude oil or natural gas by penetrating exploratory wells and extracting the resource to the surface. Notable Oil and Gas Industry in India Upstream attributes to the exploration and production sector.

Midstream Companies:

On the other hand, those extracted resources are meant to process, store, market and trade as exports. Therefore, Midstream companies function as a connection between the production area and ultimate consumer location (marketplace).

Downstream Companies:

The third category of Oil & Gas industry operates the part of oil refineries, petroleum products distributors, planters of petrol chemical stations and retail outlets of natural gas.

Market size of Oil & Gas Industry in India

The Indian Oil & Gas industry became the third-largest consumer of oil in 2021 and planning to accomplish the position of largest contributors to non-OECD petroleum consumption thrive.

As mentioned above, India attains as one of the topmost crude oil production abreast importers in the world. In recent times, a provisional refinery has been installed on the concurred of Government in order to burgeon as the Largest Domestic refiner at a worth of 249.9 MMT (Metric Million Tonnes).

Last year the world faced a down economy because of the ongoing pandemic. According to the reports of the Financial year 2021, the industry faced a drawback in the exports of petroleum products which is estimated to fall from 65.7 to 56.8 MMT.

Export of Petroleum Products from India (MMT)
Export of Petroleum Products from India (MMT)

Nevertheless, still, the oil & gas industry in India showed a spiked percent of 4.5 in the consumption of petroleum products that is comparable to the financial year 2019. Last year, the Gas Authority of India Ltd. held the largest share of the country's natural gas pipeline network.

Currently, the industry anticipates enticing US corporations to invest around 25 billion dollars in Upstream companies by 2022. Additionally, the Oil & Gas industry in India showed a reduction in crude oil production which stood at 30.5 MMT for FY21, analogous to the 32.2 MMT in FY20.


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Recent plans of the Oil & Gas Industry in 2021

The major plans and schemes for the Oil and Gas Industry can be seen from the Union Budget 2021. The government has allocated funds worth INR 12,480 crores for direct benefit transfer of LPG and INR 1078 crores for feedback subsidy to BPCL / AssamGas Cracker Complex.

Prime minister Narendra Modi in February 2021, had declared that INR 7.5 trillion swill be invested by the Indian Government in improving Oil and Gas Infrastructure in the upcoming five years.

An LNG (Liquified Natural Gas) policy draft was published by the petroleum and Natural gas ministry and it aims at increasing the LNG regasification capacity of India.

Key Players to look out for in the Oil & Gas Industry in India

The top players in the Oil and Gas Industry in India that have made their mark are:

Reliance Industries Limited (RIL):

Reliance Industries Limited trades in the research and analysis of Oil and Gas and production is also a key part of the business concern. Reliance Petroleum headquartered in Ahmedabad, Gujarat founded in 2008 falls under the petroleum and natural gas industry. It was merged with Reliance Industries Limited in 2009.

Oil and Natural Gas Corporation (ONGC):

Oil and Natural Gas Corporation is a government-owned corporation that handles in production and distribution of crude oil and natural gas in India. In India, ONGC is the largest company that produces and explores oil and gas reserves. The company is owned by the petroleum and natural gas ministry of India and was founded in 1956.

Indian Oil Corporation Limited (IOCL):

Indian Oil Corporation is a publicly owned conglomerate. It is a property that is in the possession of the petroleum and natural gas ministry, Government of India. It is headquartered in New Delhi and was founded in June 1959.


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Conclusion

India with its increasing population has increasing needs and this is true in the case of Oil and Gas procurement and usage in India. India is the third-largest consumer of Oil in the world. Petroleum products have the highest share of 14 per cent in Indian exports. This points out that the Oil and Gas industry is one main source of revenue for the country and the increasing energy demands of the country can only signify the rapid growth of the Oil and Gas Industry in India in the future.

FAQ

What is the Oil & Gas Industry in India?

The Oil and Gas Industry is the industry in which organizations and other entities engaged in activities related to exploration, extraction, drilling and refining of gas and oil and its derivatives for the purpose of sale. The oil and gas industry in India dates back to 1889 when oil deposits were found for the first time in a town in Assam.

What is the net income of the Oil & Gas Industry in India?

India is the third-largest consumer of oil in the world and Oil and Gas is one of the 8 major industries in India. ONGC is the largest Oil and Gas exploration and production company in India and has a net income of INR two trillion as of 2020.

Who is governing and functioning the Oil & Gas Industry in India?

The Ministry of Petroleum and Natural Gas is responsible for the exploration, production, refining, distribution, marketing, import and export of petroleum, natural gas, petroleum products and liquified natural gas in India.

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