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This small amount of production made the oil experts from different countries predict the future of the oil industry as a dull one and also doubted India’s ability to search for new oil reserves. But the Government of India declared the Oil industry in India as the core sector industry under the Industrial Policy Resolution bill in the year 1954, which has helped the oil industry in india vastly.
Oil exploration and production in India is done by companies like NOC or National Oil Corporation, ONGC or Oil and Natural Gas Corporation and OIL who are actually the oil companies in India that are owned by the government under the Industrial Policy Rule.
The National Oil Corporation during the 1970s used to produce and supply more than 70 percent of the domestic need for the petroleum but by the end of this amount dropped to near about 35 percent. This was because the demand on the one hand was increasing at a good rate and the production was declining at a steady rate.
Oil Industry in India during the year 2004-2005 fulfilled most of demand through importing oil from multiple oil producing countries. The Oil Industry in India itself produced nearly 35 million metric tons of Oil from the year 2001 to 2005. The Import that is done by the oil industry in india comes mostly from the middle east asia. Over the years India Petroleum Industry has played an influential part in triggering the speedy expansion of the country’s economy by contributing 15% in the total GDP.
Further to this, petroleum exports gave new dimension to foreign exchange earnings by drawing US$ 23. 4 billion in the FY 2008-09 The Oil that is produced by the Oil Industry in India provides more than 35 percent of the energy that is primarily consumed by the people of India. This amount is expected to grow further with both economic and overall growth in terms of production as well as percentage. The demand of oil is predicted to go higher and higher with every passing decade and is expected to reach an amount of nearly 250 million metric ton by the year 2024 The future of Indian petroleum industry has good potential but it needs developmental activities in this sector to strengthen itself.
The world at present is experiencing a lot of changes of mammoth proportions. The Petroleum industry in India is one of the harbingers of huge economic growth. The arena for business has now gone global since trade boundaries are fast dissolving. These developments present India with tremendous opportunities in the future to be one of the major players in the export of petrochemical intermediaries. Today, India imports more than 70% of its oil requirements. The search for more oil led India to sift through the international markets comprising of the emerging energy-trading countries like China, Russia, and Iran.
India has made new partnerships with Venezuela, Burma, Middle East nations and Pakistan The long-term energy strategies ofIndia have to emphasize on the methods of using energy effectively and efficiently, and to enhance energy self-sufficiency. To lift the Indian economy to enhanced economic standards innovation, diplomacy, creativity, and vision are the need of the hour. India has to compete for conventional energy sources and for that there must be developmental activities for energy efficient buildings and vehicles. The main problems with the Petroleum Industry in India are related to infrastructural developments.
The lack of proper storage facilities, enhancements in refining capacities, and fluctuating import prices plays important role in the development of the sector. The target of improvement for the growth of the economy for India should be in the area of the petrochemical sector. The need for intermediary products for the manufacturing of the end use products is an important sector to tap in. With the per capita consumption for the petrochemical products inIndia being low and the production of these products being high, India may become one of the leading exporters of such intermediary products.
The future of Indian petroleum industry depends on: * Demand for petroleum is growing in leaps and bounds * Shifting focus to more production of olefin – ethylene, propylene, butadiene, * Price and availability of crude oil and gas as feedstock would still be critical factors * The demand of the end products would affect the demand of the intermediary products Some of the major companies in the oil industry in India are: * India Oil Ltd. * Reliance industries * Bharat Petroleum Corporation Limited * Hindustan Petroleum * ONGC
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