Kudos
to the Indian Oil and Gas Industry! Despite soaring en- ergy
prices, it was able to sustain the top spot even in the financial
year 2006-07. Five major oil and gas companies have grabbed
all the first five consecutive ranks in The
500 ranking based on Net Sales. While Indian Oil Corporation
Ltd. leads the pack, others such as Reliance Industries Ltd.,
BPCL, HPCL and ONGC occupy the subsequent ranks.
Estimated
to be a US$110 bn industry, Indian Oil and Gas sector plays
a crucial role in the nation's energy security by accounting
for more than two-thirds of the total energy requirements
of India. Being the largest contributor to the central and
state exchequers, it accounts for about 64% of gross revenues
to Indian Government by way of taxes and duties. More importantly,
the sector has been instrumental in placing India on the global
map. One significant development in recent times has been
the landmark turnaround of the refining sector, which has
emerged as a net exporter of refined petroleum products from
being a net importer.
The
exponential growth of India in recent years has augmented
the demand for oil manifold. India is the sixth largest oil
consumer in the world and by 2010 it is projected to emerge
as the fourth-largest consumer of energy, after the US, China
and Japan. However, the domestic oil production has been stagnant
over the years and could not meet the increasing demand. In
fact, India produces on an average 0.68 million barrels per
day (MMbpd) while it consumes around 2.2 MMbpd. This has led
to a wide demand-supply gap, leading to increasing dependence
on import. |
