An Overview: Oil and Gas Scenario

The oil and gas sector plays a very important role in the economic and political scenario of the globe. The limited oil and gas reserve along with increasing energy requirement across the globe has led to spiralling of price resulting in supply related concerns for countries around the world.

The high economic growth in the past few years and increasing industrialisation coupled with a burgeoning population have created a lot of concern for India's energy scenario. India has 0.5% of the oil and gas resources of the world and 15% of the world's population. This makes India heavily dependent on the import of the crude oil and natural gas. India's crude oil production has not shown significant growth in the last 10 or more years whereas its refining capacity has grown by more than 20% over the last 5 years. Oil consumption is growing at approximately 4.1% per year and natural gas consumption at 68% per year.

The fact that India has not made any major breakthroughs in the field of renewable sources of energy, oil and natural gas would continue to hold a place of key importance in India's economy.

The prospects of Indian oil industry are for more exciting than any other, which India being among the least explored countries in the world at a well density of 20 per 10000 km2. India is the third largest oil consumer in Asia, even though on per capita basis the consumption is mere 0.1 tonne per year, the lowest in the region. Of the 26 sedimentary basins only eight have been explored so far. All this makes India the desired destination in terms of opportunities.