If any economy is growing then it needs fuel for that growth just like it needs steel and Cement for infrastructure.
There are two different segments in Oil sector. One is upstream and another is down streem. Upstream is mainly searching for the right place where oil is under the earth’s crust and weather it is economically viable to drill or dig. It also includes refinery which includes processing and making products which are posible to sell, which are sold from Downstream Companies.
OPEC is international body of Oil producers which holds big stake in oil production.
India’s oil demand is expected to grow at a CAGR of 3.6 per cent to 458 Million Tonnes of Oil Equivalent (MTOE) by 2040, while demand for energy will more than double by 2040 as economy will grow to more than five times its current size, as stated by Mr Dharmendra Pradhan, Minister of State for Petroleum and Natural Gas. Gas production will likely touch 90 Billion Cubic Metres (BCM) by 2040, subject to adjustment to the current formula that determines the price paid to domestic producers, while demand for natural gas will grow at a CAGR of 4.6 per cent to touch 149 MTOE. India is the fourth-largest Liquefied Natural Gas (LNG) importer after Japan, South Korea and China, and accounts for 5.8 per cent of the total global trade. Domestic LNG demand is expected to grow at a CAGR of 16.89 per cent to 306.54 MMSCMD by 2021 from 64 MMSCMD in 2015. Investments in India’s oil and gas sector will likely touch Rs 2.5-3 trillion (US$ 37.28-44.73 billion) over the next few years, which will help raise the share of gas in the country’s primary energy mix to 15 per cent by 2030, as per British multinational oil and gas company BP Group. State-owned Oil and Natural Gas Corporation (ONGC) dominates the upstream segment (exploration and production), producing around 22.37 MT of crude oil, which is approximately 60.5 percent of the country’s 36.95 MT oil output, as of March 2016. It has launched a start-up fund of Rs 100 crore (US$ 14.91 million) on its Diamond Jubilee year to encourage and promote new ideas related to oil and gas sector, thereby giving a fillip to Government’s Startup India initiatives. ONGC Videsh Ltd (OVL), the foreign arm of state-owned petroleum explorer Oil and Natural Gas Corporation (ONGC), has planned to acquire up to 15 per cent stake in CSJC Vankorneft, which owns Russia’s second-largest oil and gas field. (from Ibef)
The govt is also taking steps for making India self-sufficient for energy.
The Ministry of Petroleum and Natural Gas is seeking to enhance India’s crude oil refining capacity through 2040 by setting up a high-level panel, which will work towards aligning India’s energy portfolio with changing trends and transition towards cleaner sources of energy generation. The Ministry of New and Renewable Energy (MNRE) plans to launch an integrated bio energy mission with an investment of Rs 10,000 crore (US$ 1.49 billion) from FY 2017-18 to FY 2021-22, aimed at enhancing the use of bio-fuels like ethanol and biogas and reducing consumption of fossil fuels. As the sector is dominated by State Run companies, the decision of ONGC and Oil India is important. The Union Cabinet has allowed state-owned oil firms to evolve their own crude oil import policies which involve freedom to choose source companies as well as pricing for their crude oil imports, thus allowing them to compete in the market effectively.
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