Description
ONGC/ESSAR/INDIAN OIL ECT
industry overview of oil industry. 1st iz: brief intro of the industry(oil industry) 2nd: various players in dis indus... eg: Reliance, adani,IOC etc...3rd: prospects/ problm of dis Indus
Introduction India is the fifth largest consumer of energy in the world, and is likely to surpass Japan and Russia to become the world's third biggest energy consumer by 2030. According to the International Energy Agency (IEA), hydrocarbons satisfy major energy demand in India wherein coal and oil, together, represent about two-thirds of total energy use. Natural gas accounts for about 7 per cent share. According to Oil & Gas Journal (OGJ), India has about 5.7 billion barrels of proven oil reserves. India's oil and gas sector has attracted investors round the globe as the country enjoys rich reserves of resources. The petroleum and natural gas industry in India has attracted foreign direct investment (FDI) worth US$ 3, 332.78 million during April 2000 to December 2011, according to the data provided by Department of Industrial Policy and Promotion (DIPP). The Department further recorded US$ 196 million during April– December 2011-12, in the industry. Oil & Gas- Market Dynamics Production and Consumption According to the provisional production data released by the Ministry of Petroleum and Natural Gas in a press release:
?
? ?
Crude Oil production was recorded at 31.87 million metric tonnes (MMT) for April-January 2012, as compared to the 31.41 MMT in AprilJanuary 2011 Natural Gas production was 40, 156.7 million cubic metres (MCM) during April-January 2011 During April-January 2012, 140.73 MMT of crude oil was refined, compared to 136.49 MMT of oil refined during corresponding period in 2011
According to Business Monitor International (BMI)'s India Oil and Gas Report for first quarter of 2012, India's average oil and liquids production for 2011 is estimated at 1.04 million barrels per day (B/D) which will touch the peak
production at 1.06 million B/D in 2012. Further, giving its demand outlook, BMI projects consumption to rise sharply to 4.29 million B/D by 2016 from 3.44 million B/D in 2011. Total gas consumption is estimated by BMI at around 81 billion cubic meters (BCM) in 2016 from around 58 BCM in 2011. Diesel & Petrol Around 40 per cent of fuel consumption in India is satisfied by diesel. According to IEA, there would be an increase in India's fuel demand by 3.8 per cent which would be majorly accounted by diesel and petrol (gasoline). IEA expects diesel's demand to have increased to 1.37 million b/d in 2011 (rising by 5.8 per cent) and further it projects an increment of 5.5 per cent in 2012 at around 1.44 million b/d. Demand for petrol is expected to have expanded by 7.6 per cent (363,000 B/D) in 2011 and is projected to increase by another 6.7 per cent (388,000 B/D) in 2012. The Ministry of Petroleum anticipates a growth of 4.6 per cent in the sale of oil products in the FY12. Gas Development of gas-fuelled power stations in India is boosting the demand for gas in the country. BMI states that gas consumption in India has increased by more than 160 per cent since 1995 while average annual demand would grow by 6 per cent over next few years. Gas production is estimated at 50 BCM in 2011 while total gas consumption is predicted at 81 BCM in 2016 from an estimated 58 BCM in 2011 by BMI. ndia as an international refining destination
India is steadily emerging as an international destination for oil refining with investment requirements lesser by 25% - 50% as compared to its Asian counterparts. As per the analysis carried out by Deutsche Bank, India is expected to enhance its refining competence by 45% in the next 5 years. Being the fifth biggest worldwide nation in context of distillation capacity, India enjoys 3% of the international capacity share. To move ahead in making its presence felt strongly in the global market, Indian petroleum firms are planning to raise their distillation capacity from the existing 149 mtpa to 243 mtpa by FY 2011-12.
Indian petroleum retail market
Expansion of Indian petroleum retail market is triggered by the growth in automobile sales that resulted in major foreign investments. The growth is estimated to sustain and the market is likely to expand further by 20 million every year till 2030, placing India at the world map in terms of being the biggest automobile market. Accordingly, the petroleum dealers Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Indian Oil Corporation in collaboration with each other are looking forward to add 2,262 petrol pumps in India by 2010. Investments in India Petroleum Industry
?
In 2010 the state-owned oil firms are expected to splurge US$ 11.34 billion on developing supplies and constructing new shipping networks for petroleum and natural gas.
?
Indian Oil Corporation is looking forward to establish a petroleum plant in the state of West Bengal by bringing in investments worth US$ 596.63 million.
?
ONGC will bring in US$ 694 million for raising services at its oil fields in Assam and adjoining states to enhance the petroleum output. In addition it will also splurge US$ 5.65 billion on capital expenses in the next two years.
?
GAIL (India) Limited and OVL, the international associate of leading oil and gas player ONGC, are expected to bring in investments worth US$ 250 million.
Future of India Petroleum Industry
As per the latest CII-KPMG analysis, the energy industry of India will help tin the expansion of the petroleum sector by bringing in investments worth US$ 120 billion-US$ 150 billion in the next 3-5 years. By 2012, the prospects in India Petroleum Industry are estimated to accomplish US$ 35 billion to US$ 40.
1. Indian Oil Corporation 2. ONGC 3. Bharat Petroleum 4. Reliance Petroleum Limited 5. Essar Oil Limited
Indian Oil Corporation Limited, or IndianOil, (BSE: 530965, NSE: IOC) is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India. The company is the world's 98th largest public corporation, according to the Fortune Global 500 list, and the largest public corporation in India when ranked by revenue.[2] IndianOil and its subsidiaries account for a
47% share in the petroleum products market, 34% share in refining capacity and 67% downstream sector pipelines capacity in India. The IndianOil Group of Companies owns and operates 10 of India's 21 refineries with a combined refining capacity of 65.7 million metric tons per year. The President of India owns 78.92% (1.9162 billion shares) in the company. In FY 2011 IOCL sold 64.1 million tons of petroleum products and reported a PBT of 90.96 billion, and the Government of India earned an excise duty of 257.899 billion and tax of 16,500 million. It is one of the five Maharatna status companies of India, apart from Coal India Limited, NTPC Limited, Oil and Natural Gas Corporation and Steel Authority of India Limited[3] IndianOil operates the largest and the widest network of fuel stations in the country, numbering about 19,463 (15,946 regular ROs & 3,517 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over 62.4 million households through a network of 5,456 Indian distributors. In addition, IndianOil's Research and Development Center (R&D) at Faridabad supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad. On 28th May 2012, Indian Oil hinted at reduction in prices of petrol.[4]
Oil and Natural Gas Corporation Limited (ONGC) (NSE: ONGC, BSE: 500312) is an Indian state-owned oil and gas company headquartered in New Delhi, India. It is one of the largest Asia-based oil and gas exploration and production companies, and produces around 77% of India's crude oil (equivalent to around 30% of the country's total demand) and around 81% of its natural gas.[2] ONGC is one of the largest publicly traded companies by market capitalization in India.[3] It is ranked #361 globally on Fortune Global 500 list in 2011 and is among the Top 250 Global Energy Company by Platts.[4][5] ONGC was founded on 14 August 1956 by the Indian state, which currently holds a 74.14% equity stake. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India, and owns and operates over 11,000 kilometers of pipelines in the country. ONGC Videsh Limited (OVL) is the international arm of ONGC. It was rechristened on 15 June 1989. It currently has 14 oil and projects across 15 countries. Its oil and gas production reached 8.87 MMT of O+oEG in 2010, up from 0.252 MMT of O+OEG in 2002/03.
Bharat Petroleum Corporation Limited (BPCL) (BSE: 500547, NSE: BPCL) is an Indian state-controlled oil and gas company headquartered in Mumbai, India. BPCL ranked #272 in Fortune Global 500 list in 2011.[1] In 1860s during vast industrial development, an important player in the South Asian market was the Burma oil company ltd Though incorporated in Scotland in 1886, the company grew out of the enterprises of the Rangoon Oil Company, which had been formed in 1871 to refine crude oil produced from primitive hand dug wells in Upper Burma. In 1928, Asiatic Petroleum Company (India) started cooperation with Burma oil company. This alliance led to the formation of Burmah-Shell Oil Storage and Distributing Company of India Limited. Burmah Shell began its operations with import and marketing of Kerosene. On 24 January 1976, the Burmah Shell was taken over by the Government of India to form Bharat Refineries Limited. On 1 August 1977, it was renamed Bharat Petroleum Corporation Limited. It was also the first refinery to process newly found indigenous crude Bombay High. In 2003, following a petition by the Centre for Public Interest Litigation, the Supreme Court restrained the Central government from privatizing Hindustan Petroleum and Bharat Petroleum without the approval of Parliament.[2] As counsel for the CPIL, Rajinder Sachar and Prashant Bhushan said that the only way to disinvest in the companies would be to repeal or amend the Acts by which they were nationalized in the 1970s.[3] As a result, the government would need a majority in both houses to push through any privatization.
Reliance Petroleum Limited (BSE: 532743) was set up by Reliance Industries Limited (RIL), one of India's largest private sector companies based in Ahmedabad. Currently, RPL is subsidiary of RIL, and has interests in the downstream oil business. RPL also benefits from a strategic alliance with Chevron India Holdings Pte Limited, Singapore, a wholly owned subsidiary of Chevron Corporation USA (Chevron), which currently holds a 5% equity stake in the Company. [2]
Essar Oil (BSE: 500134, NSE: ESSAROIL) is an India-based company engaged in the exploration and production of oil and natural gas, refining of
crude oil, and marketing of petroleum products. It is a part of the Essar Group based in Mumbai. It operates a major refinery in Vadinar, Gujarat, India, which made it the second largest non-state refiner in India in 2009.[3] In July 2009, Essar acquired a 50% stake in Kenya Petroleum Refineries Ltd.[4] a
doc_976812767.docx
ONGC/ESSAR/INDIAN OIL ECT
industry overview of oil industry. 1st iz: brief intro of the industry(oil industry) 2nd: various players in dis indus... eg: Reliance, adani,IOC etc...3rd: prospects/ problm of dis Indus
Introduction India is the fifth largest consumer of energy in the world, and is likely to surpass Japan and Russia to become the world's third biggest energy consumer by 2030. According to the International Energy Agency (IEA), hydrocarbons satisfy major energy demand in India wherein coal and oil, together, represent about two-thirds of total energy use. Natural gas accounts for about 7 per cent share. According to Oil & Gas Journal (OGJ), India has about 5.7 billion barrels of proven oil reserves. India's oil and gas sector has attracted investors round the globe as the country enjoys rich reserves of resources. The petroleum and natural gas industry in India has attracted foreign direct investment (FDI) worth US$ 3, 332.78 million during April 2000 to December 2011, according to the data provided by Department of Industrial Policy and Promotion (DIPP). The Department further recorded US$ 196 million during April– December 2011-12, in the industry. Oil & Gas- Market Dynamics Production and Consumption According to the provisional production data released by the Ministry of Petroleum and Natural Gas in a press release:
?
? ?
Crude Oil production was recorded at 31.87 million metric tonnes (MMT) for April-January 2012, as compared to the 31.41 MMT in AprilJanuary 2011 Natural Gas production was 40, 156.7 million cubic metres (MCM) during April-January 2011 During April-January 2012, 140.73 MMT of crude oil was refined, compared to 136.49 MMT of oil refined during corresponding period in 2011
According to Business Monitor International (BMI)'s India Oil and Gas Report for first quarter of 2012, India's average oil and liquids production for 2011 is estimated at 1.04 million barrels per day (B/D) which will touch the peak
production at 1.06 million B/D in 2012. Further, giving its demand outlook, BMI projects consumption to rise sharply to 4.29 million B/D by 2016 from 3.44 million B/D in 2011. Total gas consumption is estimated by BMI at around 81 billion cubic meters (BCM) in 2016 from around 58 BCM in 2011. Diesel & Petrol Around 40 per cent of fuel consumption in India is satisfied by diesel. According to IEA, there would be an increase in India's fuel demand by 3.8 per cent which would be majorly accounted by diesel and petrol (gasoline). IEA expects diesel's demand to have increased to 1.37 million b/d in 2011 (rising by 5.8 per cent) and further it projects an increment of 5.5 per cent in 2012 at around 1.44 million b/d. Demand for petrol is expected to have expanded by 7.6 per cent (363,000 B/D) in 2011 and is projected to increase by another 6.7 per cent (388,000 B/D) in 2012. The Ministry of Petroleum anticipates a growth of 4.6 per cent in the sale of oil products in the FY12. Gas Development of gas-fuelled power stations in India is boosting the demand for gas in the country. BMI states that gas consumption in India has increased by more than 160 per cent since 1995 while average annual demand would grow by 6 per cent over next few years. Gas production is estimated at 50 BCM in 2011 while total gas consumption is predicted at 81 BCM in 2016 from an estimated 58 BCM in 2011 by BMI. ndia as an international refining destination
India is steadily emerging as an international destination for oil refining with investment requirements lesser by 25% - 50% as compared to its Asian counterparts. As per the analysis carried out by Deutsche Bank, India is expected to enhance its refining competence by 45% in the next 5 years. Being the fifth biggest worldwide nation in context of distillation capacity, India enjoys 3% of the international capacity share. To move ahead in making its presence felt strongly in the global market, Indian petroleum firms are planning to raise their distillation capacity from the existing 149 mtpa to 243 mtpa by FY 2011-12.
Indian petroleum retail market
Expansion of Indian petroleum retail market is triggered by the growth in automobile sales that resulted in major foreign investments. The growth is estimated to sustain and the market is likely to expand further by 20 million every year till 2030, placing India at the world map in terms of being the biggest automobile market. Accordingly, the petroleum dealers Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Indian Oil Corporation in collaboration with each other are looking forward to add 2,262 petrol pumps in India by 2010. Investments in India Petroleum Industry
?
In 2010 the state-owned oil firms are expected to splurge US$ 11.34 billion on developing supplies and constructing new shipping networks for petroleum and natural gas.
?
Indian Oil Corporation is looking forward to establish a petroleum plant in the state of West Bengal by bringing in investments worth US$ 596.63 million.
?
ONGC will bring in US$ 694 million for raising services at its oil fields in Assam and adjoining states to enhance the petroleum output. In addition it will also splurge US$ 5.65 billion on capital expenses in the next two years.
?
GAIL (India) Limited and OVL, the international associate of leading oil and gas player ONGC, are expected to bring in investments worth US$ 250 million.
Future of India Petroleum Industry
As per the latest CII-KPMG analysis, the energy industry of India will help tin the expansion of the petroleum sector by bringing in investments worth US$ 120 billion-US$ 150 billion in the next 3-5 years. By 2012, the prospects in India Petroleum Industry are estimated to accomplish US$ 35 billion to US$ 40.
1. Indian Oil Corporation 2. ONGC 3. Bharat Petroleum 4. Reliance Petroleum Limited 5. Essar Oil Limited
Indian Oil Corporation Limited, or IndianOil, (BSE: 530965, NSE: IOC) is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India. The company is the world's 98th largest public corporation, according to the Fortune Global 500 list, and the largest public corporation in India when ranked by revenue.[2] IndianOil and its subsidiaries account for a
47% share in the petroleum products market, 34% share in refining capacity and 67% downstream sector pipelines capacity in India. The IndianOil Group of Companies owns and operates 10 of India's 21 refineries with a combined refining capacity of 65.7 million metric tons per year. The President of India owns 78.92% (1.9162 billion shares) in the company. In FY 2011 IOCL sold 64.1 million tons of petroleum products and reported a PBT of 90.96 billion, and the Government of India earned an excise duty of 257.899 billion and tax of 16,500 million. It is one of the five Maharatna status companies of India, apart from Coal India Limited, NTPC Limited, Oil and Natural Gas Corporation and Steel Authority of India Limited[3] IndianOil operates the largest and the widest network of fuel stations in the country, numbering about 19,463 (15,946 regular ROs & 3,517 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over 62.4 million households through a network of 5,456 Indian distributors. In addition, IndianOil's Research and Development Center (R&D) at Faridabad supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad. On 28th May 2012, Indian Oil hinted at reduction in prices of petrol.[4]
Oil and Natural Gas Corporation Limited (ONGC) (NSE: ONGC, BSE: 500312) is an Indian state-owned oil and gas company headquartered in New Delhi, India. It is one of the largest Asia-based oil and gas exploration and production companies, and produces around 77% of India's crude oil (equivalent to around 30% of the country's total demand) and around 81% of its natural gas.[2] ONGC is one of the largest publicly traded companies by market capitalization in India.[3] It is ranked #361 globally on Fortune Global 500 list in 2011 and is among the Top 250 Global Energy Company by Platts.[4][5] ONGC was founded on 14 August 1956 by the Indian state, which currently holds a 74.14% equity stake. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India, and owns and operates over 11,000 kilometers of pipelines in the country. ONGC Videsh Limited (OVL) is the international arm of ONGC. It was rechristened on 15 June 1989. It currently has 14 oil and projects across 15 countries. Its oil and gas production reached 8.87 MMT of O+oEG in 2010, up from 0.252 MMT of O+OEG in 2002/03.
Bharat Petroleum Corporation Limited (BPCL) (BSE: 500547, NSE: BPCL) is an Indian state-controlled oil and gas company headquartered in Mumbai, India. BPCL ranked #272 in Fortune Global 500 list in 2011.[1] In 1860s during vast industrial development, an important player in the South Asian market was the Burma oil company ltd Though incorporated in Scotland in 1886, the company grew out of the enterprises of the Rangoon Oil Company, which had been formed in 1871 to refine crude oil produced from primitive hand dug wells in Upper Burma. In 1928, Asiatic Petroleum Company (India) started cooperation with Burma oil company. This alliance led to the formation of Burmah-Shell Oil Storage and Distributing Company of India Limited. Burmah Shell began its operations with import and marketing of Kerosene. On 24 January 1976, the Burmah Shell was taken over by the Government of India to form Bharat Refineries Limited. On 1 August 1977, it was renamed Bharat Petroleum Corporation Limited. It was also the first refinery to process newly found indigenous crude Bombay High. In 2003, following a petition by the Centre for Public Interest Litigation, the Supreme Court restrained the Central government from privatizing Hindustan Petroleum and Bharat Petroleum without the approval of Parliament.[2] As counsel for the CPIL, Rajinder Sachar and Prashant Bhushan said that the only way to disinvest in the companies would be to repeal or amend the Acts by which they were nationalized in the 1970s.[3] As a result, the government would need a majority in both houses to push through any privatization.
Reliance Petroleum Limited (BSE: 532743) was set up by Reliance Industries Limited (RIL), one of India's largest private sector companies based in Ahmedabad. Currently, RPL is subsidiary of RIL, and has interests in the downstream oil business. RPL also benefits from a strategic alliance with Chevron India Holdings Pte Limited, Singapore, a wholly owned subsidiary of Chevron Corporation USA (Chevron), which currently holds a 5% equity stake in the Company. [2]
Essar Oil (BSE: 500134, NSE: ESSAROIL) is an India-based company engaged in the exploration and production of oil and natural gas, refining of
crude oil, and marketing of petroleum products. It is a part of the Essar Group based in Mumbai. It operates a major refinery in Vadinar, Gujarat, India, which made it the second largest non-state refiner in India in 2009.[3] In July 2009, Essar acquired a 50% stake in Kenya Petroleum Refineries Ltd.[4] a
doc_976812767.docx