Oil Refinery in India

1710 Words Mar 23rd, 2008 7 Pages
Oil Refinery in India

An Industry Overview


Table of Contents
INTRODUCTION 2
GLOBAL VIEW ON REFINING 3
INDUSTRY OVERVIEW 4
REGULATORY FRAMEWORK 8
INDUSTRY ANALYSIS 9
FUTURE OUTLOOK 11
REFERENCES 12

"THE ONCE RELIABLE CONSTANTS HAVE BECOME GALLOPING VARIABLES"
-ALVIN TOFFLER
India the world's seventh largest country and the second most populace nation has been a destination of unrealized potential. In the recent past it has seen as stir of economic activity changing the prim face of the nation. The country has had breath taking reforms bringing in foreign direct investments and foreign institutional investments into the country at a brisk pace. Today India is one of the most exciting emerging markets in the world to be in. A new
…show more content…

Product MMT %
Diesel 40.2 35.9%
Petrol 8.6 7.7%
LPG 10.3 9.2%
Kerosene 9.4 8.4%
FO/LSHS 12.7 11.4%
Naphtha 12.2 10.9%
Bitumen, ATF, Lubes, Solvents 18.5 16.5% 111.9 100%

Key Indian Players

Regulatory Framework NELP (New Exploration Licensing Policy) is the new government policy which is to have a direct impact on the E&P activity in India and an indirect effect on the refining sector. This is to promote the participation of foreign companies in India and have a check on the on the rising crude bill. In India one of the major problems is the price control that the government has over selling end products what this has done in that made refining companies less profitable even though this is done in the larger interest of the nation. The government is also planning to put in strategic petroleum reserve but this on paper as of now. For India to sustain its economic growth this sector is to play a vital role and the government understands this and doing all to liberalize it the fullest.  
Industry Analysis
This sector has so far been dominated by public sector companies and now is getting a tang of liberalization. The government has spoken about the export of refined oil products as this provides a value addition in reducing the oil prices on
Open Document