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 providing

the latest intelligence for the oil and gas community
worldwide
 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

Market Share of Oil and Gas Companies

1%

11%
28% IOCL
ONGC
18%
Reliance
HPCL
BPCL
Others (GAIL, OIL)
20% 22%
 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 Weaknesses
•Strong economic growth • High import dependence
• Alternate options • Late start in acquisition
• Demand for petroleum products • Geo-political disturbance
• Scope of Conservation •Self defeating policy
•High exploration of portfolio
•Increase in demand for oil and gas

Opportunities Threats
• Supply channels • Production Stagnation
• Interdependence nations • Ever increasing demand
•Technology • Increasing competition
• New sources •Lack of regional Institutions
•Growing market • Terrorism
• collaborations •Environment concerns
• frontier markets
PEST Analysis Of The Oil And Gas Sector In India

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

instability)
POLITICAL &
• Non-standard legal & environmental regulatory
ECONOMICAL
frameworks
• Financial and other resource constraints

•Non existence of expertise in new service offerings and

SOCIAL & emerging technologies
TECHNOLOGICAL
•Non-integrated operations at the organizational level
 Current ratio
3.5

2.5
OIL
2 HPCL
BPCL
1.5
ONGC
1 IOCL

0.5

0
2010 2011 2012 2013 2014
 Conclusion
• 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. Government has taken many steps to regulate it.
The Steps are also taken to increase the Indigenous oil and gas
reserves.

• Although there are few loopholes which should be taken care

of as soon as possible, one major drawback in the E&P sector
is that the Regulatory Body (DGH) does not have any statutory
value. The decisions of the DGH are merely advisory in nature
and the Government is not to follow them.
THANK YOU