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CRUDE OIL - $76.26
GAS - $4.22 Per MMBTU
-As on May 12th 2010.
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The energy scene in the 21st century is going to see a
major shift. Very soon, oil and gas will see its
finiteness. It is high time that we realize this factor and
work towards the fuel of the future.
- Dr. A P J Abdul Kalam,Former President of India, Address at Energy
Technology Conclave Technology for Sustainability
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The Indian Oil and Gas sector is one of the sixcore industries in India and has very significantforward linkages with the entire economy.
The oil & gas sector meets more than two thirdof the total primary energy needs in thecountry. The sector has been instrumental inputting India on the world map
At present India is the sixth largest crude oilconsumer in the world and the ninth largestcrude oil importer
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At present Indian refining sector is the sixthlargest in the world.
In India production of natural gas hasincreased over 3 times in the last two decades.
Nearly 60% of the total primary energyconsumption the world over is accounted by
oil and gas. India has vast potential in the Exploration Sector.
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SIZE
Oil & Gas cater to 45% of Indias primary energy requirements
Crude oil demand is currently about 146 MMT while the domestic
production of crude is only 34 MMT Natural gas demand is currently about 179 MMSCMD while the
domestic supply is only 80 MMSCMD
STRUCTURE
ONGC and OIL, largest upstream companies, with about 82%
share of the total domestic oil and gas production
Exploration and Production sector witnessing increased private
sector participation.
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POLICY
100% FDI is allowed in the exploration of Crude Oil and
Natural Gas through the automatic route .
New Exploration Licensing Policy (NELP) is in place (since
1998) to facilitate private sector participation in Oil and Gas
exploration.
Coal Bed Methane (CBM) Policy has been formulated which
provides for attractive fiscal and contract terms for the
exploration of CBM blocks
OUTLOOK
Crude oil demand is likely to increase to about 235 MMT by
2012.
Gas demand is expected to reach 279 MMSCMD by 2012
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POTENTIAL
Growing demand-supply mismatch provides ample opportunitiesfor investment
Exploration and production of crude oil, gas and CBM
Active promoting and creation of strategic oil and gas reservesthrough partnerships with the private sector
22% of the Indian sedimentary area is unexplored discovery of oilfields by investors such as Cairn Energy and giant gas fields byReliance, ONGC, etc. indicate a large potential for profitableinvestment in exploration
An investment need of US$40 billion is expected in exploration andproduction by 2012
Reliance alone plans to spend over US$10 billion in oil & gasexploration and production over the next 3 years.
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Increasing urbanization and greater concern forenvironment and safety, the share of pipelinetransportation is likely to increase in India
About 50-60% of the primary transportation ofpetroleum products in developed countries is donethrough pipelines
Pipeline network of Indian Oil has grown to 9273km with a capacity of about 62 million metric
tonnes per year. GAIL owns and operates 6700 km. of natural gas
transmission network which is over 82% of the totalpipeline infrastructure in the country.
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India plans to bring 200 of its cities under thegas pipeline network by 2020.
India at present uses around 150 million cubic
meter of gas a day.
At present economic growth rate, consumptionto increase 3 fold by 2012.
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PlaceReserves
(TCF)
Production
(TCF/ Yr)
R/P
(Years)
World 6263 98 60.3
India 37 1 35
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Resources India World
Oil 37.4 33.22
Natural Gas 24.3 9.34
Coal 25.5 53.54 Nuclear 6.5 1.04
Hydel 6.3 2.63Source : www. planningcommission.gov.in
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53%31%
9% 6% 1% Coal
Oil
Gas
Hydro
Nuclear
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