PETROLEUM INDUSTRY

Presented By: Amit Sharma Chanappa Sneha Singh Vivek Surana

A BRIEF OVERVIEW OF INDIAN ECONOMY High Growth Rate

Attractive Destination For Investment

Excited Market

CURRENT MACROECONOMIC ENVIRONMENT Exports From SEZ

Increase in FDI

Growing Foreign Exchange Reserve

Growth in RHC

Increase in manufacturing sector

KEY INDUSTRIES IN INDIA Automobile Industry

Food Industry

Real Estate

INDUSTRY OVERVIEW Petroleum industry is the back bone of the

economy. Most important part of petroleum industry is

Petroleum Refining Industry. The oil consumed around the world in a year

is about 30 billion barrel. The price of petroleum is determined by the

demand-supply mechanism around the globe.

INDIAN PETROLEUM INDUSTRY Started it’s journey during the fiscal year

1980. Initially petroleum industry was small in size

with the production of not more than 250,000 tones per year.

Government of India declared oil industry as core industry under Industrial Policy Resolution 1954.

Demand for oil is expected to reach 250 million metric ton by 2024.

CURRENT SCENARIO India one of the least explored countries of

the world. GOI maintains price control on four sensitive

petroleum products:-(I). Petrol(II). Diesel(III). LPG(IV). Kerosene GOI downstream the petroleum sector.

FACTS AND FIG.

India has total reserve of 757 million metric ton of oil and 1241 billion cubic meters of gas oil.

Crude oil production is 37.7 million metric tones.

Refining capacity has increased from 183.386 MMTPA to 187.386.MMTPA.

CONT….

Production of petroleum product was 190.364 million metric tones against 179.769.

The country exported 59.13 million metric tones of petroleum product against the import of 26.31 million metric tones.

The consumption of petroleum product was 141.786 million metric tones 3.60% higher than last previous year.

KEY PLAYERS HPCL Operates producing international standards

lube base oils with capacity 335MT Market share is 20% and 10% of the national

refining capacity Revenue earned 34000cr with profit margin

0.6%

IOCL Covers entire hydrocarbon value chain Market share 48% with 34.8% national

refining capacity Revenue earned 271,074cr with profit

10221cr

BPCL Major distributor of petroleum products Revenue earned 36000cr with profit margin

of 0.5%

Reliance Industry Oil and gas giant in private sector Cash rich with more than $15 billion

WORLD OIL CONSUMPTION

CRITICAL FACTORS Environmental factors economic environment legal environment technological environment Unplanned refinery shortage Unforeseen demand increases Pipeline problems

ISSUES AND CHALLENGES Pricing Sluggish investement Climatic changes Demand

CONCLUSIONSTRENGTHS

• Developing economy• Governmnet decisions(custom & excise duty)

WEAKNESS

• Crude prices• Lack of freedom

OPPORTUNITIES

• Equity oil• Natural gas

THREATS

• Competition• Government interferance

REFERENCES

www.ibef.org

www.wconomywatch.com