To make a generic statement, India is one of the biggest markets for pin to petroleum to airplanes. The population, driven by the cultural, linguistic, economic, and ecological diversity, has made thousands of multinational companies to look at India for expansion. In past few decades, while the world economy was in great turmoil, it was India that carried the beacon of hope with thriving markets.
Now, to be specific to the Oil & Gas Industry, consider these facts:
- India is the 6th Largest consumer of oil
- India is 9th Largest crude oil importer
- 15% of the GDP in India, comes from oil and gas industry
- Oil consumption is slated to enhance by 4-5% per annum
- 100% FDI to boost the production in India
- Administered Pricing Policy, that restricted the pricing model, has been abolished
- New Exploration Licensing Policy (NELP) has been introduced to promote exploration activity
- Implementation of Enhanced Oil Recovery (EOR)/Improved Oil Recovery (IOR) has opened the scope of exploring new and/or deeper areas
- Indian offshore fields are widely open for Private/Joint Venture companies
- Only 30% of the Market is utilised by Private/Joint Venture Firms
- Over 78% of the nation's sedimentary area, is yet to be explored
- In 2004-05, the Exploration and Production spend was US$ 2.5 billion
- Currently, the overall E&P spend is supposed to be in range of US$ 90-110 billion, i.e. it has grown around 50 times
- Capital costs are lowered by 25-50% in comparison with other Asian countries
These are all figures and facts from various government and financial agencies like Invest In India, India energy Portal, Department of Industrial Policy and Promotion (Government Of India), Ministry Of Petroleum and Gas (Government Of India), India Brand Equity Foundation, etc.
