Trade Analytics
Oil And Gas
India will overtake Japan to become the world’s third largest oil consumer behind the US and China by 2025.

Indian Oil and Gas Industry Analysis

Latest update: April, 2018

  • Oil consumption has expanded at a CAGR of 3.3 per cent during FY2008–16F to reach 4.0 mbpd by 2016.
  • Due to the expected strong growth in demand, India’s dependency on oil imports is likely to increase further
  • Rapid economic growth is leading to greater outputs, which in turn is increasing the demand of oil for production and transportation
  • With rising income levels, demand for automobile is estimated to increase, in turn leading to augmented demand for oil and gas.

Notes: F- Forecast, CAGR - Compound Annual Growth Rate, mbpd - Million Barrels Per Day
Source: Ministry of oil and Natural Gas, BP Statistical Review 2015 BMI Forecasts, Aranca Research

Growth
  • In FY16, total crude oil imports were valued at US$ 64.4 billion as compared to US$ 112.7 billion in FY15. In FY14, imports accounted for more than 80 per cent of the country’s total oil demand.
  • Backed by new oil fields, domestic oil output is anticipated to grow to 1.0 mbpd by FY16.
  • In March 2017, the Indian Strategic Petroleum Reserve Ltd (ISPRL) and Abu Dhabi National Oil Company (ADNOC) of UAE signed an agreement, to fill up 0.81 MMT or 5,860,000 million barrels of crude oil at ISPRL storage facility at Mangalore, Karnataka.
  • According to the Organisation of the Petroleum Exporting Countries (OPEC), the demand for oil across the world will grow by 1.26 million barrels per day (mb/d). Moreover, majority of the oil demand across the globe is expected to originate from India.

Notes: F - Forecast, mbpd - Million Barrels Per Day
Source: Ministry of Oil and Natural Gas, BMI forecasts, Aranca Research

Growth

 

Last Updated: April, 2018

In 2016, India remained the third-largest energy consumer^ in the world with oil and gas accounting for 37 per cent of its total energy consumption. Annual consumption stood at 4.33 million barrels per day (MBPD) of oil and 50.09 billion cubic meters (bcm) of gas. By 2035, India’s energy demand is expected to double to 1,516 Mtoe by 2035 from 723.9 Mtoe in 2016. According to the International Energy Agency (IEA), India is expected to account for almost one-third of the global growth in energy demand by 2040.

India has proven oil reserves of 600 million metric tonnes (MMT), and gas reserves of 1.2 trillion cubic meters. In 2016-17, India’s production of crude oil and natural gas stood at 0.72 mbpd and 30.92 bcm respectively, yet given the low production base, the country remains a net importer of energy. Production of crude oil and natural gas during April-February 2017-18 reached 0.65 mbpd and 29.11 bcm, respectively.

India has a flourishing crude oil refining industry with an annual capacity of 247.566 MMT, as of 2017. In 2017, India’s public and private sector refineries processed 157.8 MMT and 91.622 MMT of crude oil. Public and Private sector refinery throughput reached 27.7 MMT and 15.14 MMT during Jan-Feb 2018. India’s oil consumption is expected to grow 129 per cent during 2016-2040.

Several initiatives have been taken by the Government of India including the launch of Open Acreage Licensing Policy (OALP) and Coal Bed Methane (CBM) policy. It has allowed 100 per cent foreign direct investment (FDI) in E&P projects/companies and 49 per cent in refining under the automatic route.

Note: MMT – Million Metric Tonnes, ^As per BP Statistical Review 2017

Sectoral Presentation (April, 2018)

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