REPORT ON INDIAN PETROLEUM

INDUSTRY


Submitted To Submitted By-
Prof. Vikram Sharma Manish Yadav
(Faculty Of Marketing 13BSP0392
Research) SEC C




INDIAN PETROLEUM INDUSTRY

This research is about the Indian petroleum refining industry. But this
industry is extremely open; trade flows are large compared to production.
And there is considerable overlap between oil production and refining
internationally, and to some extent in India. So we begin with a brief
discussion of the international petroleum industry and its components
refining being one of them.

The Indian oil and gas sector is one of the six core industries in India.
The Indian oil and gas sector is of strategic importance and plays a
predominantly pivotal role in influencing decisions in all other spheres
of the economy.
India has total reserves (proved & indicated) of 1201 million metric
tonnes of crude oil .

Petroleum Industry:
Petroleum industry started its operations in the year 1867 and is considered as the
oldest Indian industry. India is one of the most flourishing oil markets in the world
and in the last few decades has witnessed the expansion of top national companies
like ONGC, HPCL, BPCL and IOC.There has been considerable increase in
refining capacity in the country over the years .
India imports three-quarters of the crude it refines. It exports refinery
Products , its net exports are roughly ten per cent of production. The
government operates an elaborate set of cross-subsidies to insulate
domestic from international prices; such cross-subsidies have serious
effects on the finances of the Indian companies involved, and influence
competition amongst them. The oil companies, both public and private, are
so large a part of the economy that the cross-subsidy regime cannot be
sustained in all circumstances; sooner or later, the government has to bring
domestic prices closer to international prices. Hence the state of
competition in the international market and international prices are
important for the domestic market.




OBJECTIVE OF THE RESEARCH


Research is aimed at understanding the Indian Petroleum Industry ,
finding out the major players involved in the market and analyzing the
trend of previous 14 years (1994-2008) which can help in forecasting
future production of petroleum products .








METHODOLOGY


The project involves exploring Indian Petroleum Industry .

Both primary as well as secondary data is collected. Primary data is given by
the faculty Guide and Secondary data is collected with the help of research
websites and industry reports .


Sample Size is 15 Companies. Availability of complete data of a company is
included in the sample .

Analyzing the trend from 1994-2008 about the Indian Petroleum Industry .



Results:








Major Players in the market ,


1) Reliance Industries Ltd.
2) Indian Oil Corpn. Ltd.
3) Hindustan Petroleum Corpn. Ltd.
4) Bharat Petroleum Corpn. Ltd.









INTERPRETATIONS


Average Profits have been rising since 1994 from where the data was selected , as
the demand of petroleum products have increased year by year due to :

The Ministry of Petroleum & Natural Gas has taken several measures for
enhancing exploration and exploitation of petroleum resources, apart from
developing the distribution and marketing of petroleum products.

There has been considerable increase in refining capacity in the country over the
years . There was an increase in domestic refining capacity by over 13.70% .





Average Net Export had a sluggish scenario , as

India is not amongst the largest producers of petroleum products . i.e consumption
is larger than its production .

Moreover , demand of petroleum products has been adapted in India at such a rapid
rate that they have to rely on imported petroleum products rather then relying on
domestically produced goods .

During the period Rupee had faced quite fluctuations in the international market as
well , due to which government policies were amended according to the scenario .


Imports & Exports of Petroleum Products:
It may be seen that despite considerable variations in International prices of
crude oil, imports have followed a steady growth primarily to meet domestic
demand of a burgeoning economy, apart from re-exports of petroleum
products. With substantial increase in refining capacity in India, as seen
earlier, exports of petroleum products have picked since 2005-06 although
the slowdown in global economy has affected the exports in recent years.
Imports of petroleum products are relatively limited to supplement domestic
refinery production as and when required.










References:


Petroleum & Natural Gas Statistics - Govt of India, Ministry of Petroleum &
Natural Gas , Economic Divison

Indian Petroleum Industry Indicus Analytics Report , 2009