Crude Oil & Gas: Oil Is Well!

Despite several challenges, the crude oil and gas industry has recorded a swift turnaround in the wake of the waning of the pandemic. Mandar Wagh explains how, being one of the country's eight core sectors, the government's focus and initiatives, as well as developments such as ethanol blend and use of alternative fuels, will determine the direction of the industry.

The global economy depends heavily on oil, which affects everything from transportation to electricity as well as industrial production and manufacturing, making it one of the major economic sectors in the world in terms of dollar worth. The Indian crude oil and gas industry is a key contributor to the economy, and being one of the country’s eight core industries, it has a significant influence on decision-making for all other critical sections of the economy. The industry is responsible for a significant portion of India’s GDP and provides employment to millions of people. India is a net importer of oil and gas, but it has significant domestic reserves of both commodities.

As India’s economic growth is strongly tied to its energy demand, there will likely be a rise in the country’s requirement for oil and gas. Since the year 2000, energy consumption has more than doubled, with coal, oil and solid biomass still meeting 80 per cent of the demand. While India is the world’s fourth-largest refiner, it is also the world’s third-largest energy and oil consumer, as well as the fourth-largest importer of liquefied natural gas (LNG). The oil and gas sector is divided into three segments based on their stage of operation in the supply chain including upstream, midstream and downstream.