The Oil And Natural Gas Sector

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The oil and natural gas sector is constituted of three major components – upstream, midstream and downstream. The upstream industry includes exploration and production, midstream includes processing, storing and transporting while the downstream industry includes oil refineries and distribution. It provides consumers with various products like petroleum, gasoline, diesel, lubricants. The purpose of our project is to study the downstream oil and natural gas sector industry environment, that is, oil refining and distribution in India. The Indian oil and gas sector is one of the six major industries in India that have a huge impact on the country’s economy. We, in this project, have made an attempt to identify
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Presently the oil refining and distribution sector is dominated by public sector and as the per capita consumption is increasing in India there is a need to add new capacity to meet demand. Globalization had a huge impact on this sector as it bought technological advancements which improved the recovery rate substantially.
Through our studies we came to a conclusion that there is a vast opportunity to increase domestic oil refining which will eventually be a boom for refineries and distribution companies. This could be achieved through following strategic actions like approving 100 percent foreign ownership, promoting the involvement of private organizations and joint-ventures. Tax holidays to new investors and advancing technology are another measures to enhance the oil refining and distribution industry in India.

There are number of agencies in Indian government that oversees the energy policies of India & they include
• The Ministry of Petroleum & Natural Gas,
• The Ministry of Coal
• The Ministry of Non-Conventional Energy Sources,
• The Ministry of Environment and Forests,
• The Department of Atomic Energy,
• The Ministry of Power
The Directorate General of Hydrocarbons (DGH) and the Oil Coordination Committee comes under the scanner of the Ministry of Petroleum and Natural Gas. These (DGH) were established in 1993 to see the working of various petroleum exploration
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