Oil Industry

The oil and gas industry has been instrumental in fuelling the rapid growth of the Indian economy. The petroleum and natural gas sector which includes transportation, refining and marketing of petroleum products and gas constitutes over 15 per cent of the GDP.

Petroleum exports have also emerged as the single largest foreign exchange earner, accounting for 17.24 per cent of the total exports in 2007-08. Growth continued in 2008-09 with the export of petroleum products touching US$ 23.63 billion during April-December 2008.

In November 2008, the Cabinet Committee on Economic Affairs awarded 44 oil and gas exploration blocks under the seventh round of auction of the New Exploration Licensing Policy (NELP-VII). With NELP VIII, the overall number of blocks brought under exploration exceeded 200.

The allocation brought in investments worth US$ 1.5 billion. The eighth round of auction which ended on October 12 2009 attracted over US$1.34 billion in minimum investment.

Production :

• Refinery production in terms of crude throughput increased to 160.77 MT in 2008-09 as compared to 156.10 MT in 2007-08.

• The production of natural gas went up to 32.84 billion cubic metres tonnes (BCM) in 2008-09, from 32.40 BCM in 2007-08.

• The projected production of crude oil during the 11th Five-Year Plan (2007-2012) is 206.76 MMT, while that of natural gas is 255.27 BCM.

• Production of gas from Reliance Industries' eastern offshore KG D-6 fields, with a life of 11 years, started on April 1, 2009 and will increase to 80 million standard cubic metres per day (MSCMD) by the end of the year. Production will help save US$ 9 billion in oil import.

• Cairn India is anticipating over 1.3 million tonnes of crude oil production from the Ravva field in the Krishna Godavari basin during the current financial year. Moreover, according to a Goldman Sachs report, production from Cairn India's prolific Rajasthan oil fields will bring down India's oil import bill by US$ 6.8 billion.

• Cairn has commenced crude oil production from the Mangala oilfield in Rajasthan, where output is set to touch a peak of 175,000 bpd (8.75 million tonnes a year) by 2011.

The Oil Industry started off more than five thousand years back. Oil sipping up from the ground were used to make the boats waterproof in the Middle East and also used as medicating as well as for painting different things.

The demand for Oil was much higher than what it actually produced and this brought forward the concept of making oil production companies which is collectively known as the Oil Industry.

The Oil Industry is a very important industry in the world and a lot depends on the price of the oil and it has been observed that whenever the oil prices increase the price of various products also increases. TheOil Industry also through oil production accounts for a large amount of the consumption of energy. In this issue the Middle East is in the first position and the lowest consumption is done by the countries in Europe.

According to the statistics the amount of oil consumed by the world every year is as many as 30 billion barrel among which nearly 25 percent of the oil consumption is done by United States of America. The Oil Industry can be parted in two, Upstream and Downstream. The importance of oil in the world evolved at a slow pace but once it was identified, it became one of the most important thing in the lives of human beings.

Oil Industry Statistics : The oil sector is considered to be one of the important areas of concern for the world economy.

It has acted as a challenge before the global economic scenario. There is fast growing oil consumption in the non-OECD Asian countries.

The non-OECD Asia (Including both India and China) accounts for around 40 percent of the total increase in world oil use. From estimation it is found that to meet the projected increase in world oil demand the total petroleum supply in 2030 is required to reach 118 million barrels per day from 80 million barrels per day as of the year 2003.

The world oil consumption has increased by 1.2 million barrels per day in the year 2005, even after the increase of 2.6 million barrels per day as in the year 2004.

In the year 2004, China's oil use have increased by 0.9 million barrels per day and at the same time its demand increased by only 0.4 million barrels per day in 2005.

Among the various sectors, the transportation sector in the world has led to a high pressure to the industry, as there are few alternatives to the petroleum.

Oil & Gas Journal in its report has shown that world oil reserves estimated at 1,293 billion barrels as of January 1, 2006.

The Largest Oil Companies:

Rank by 2007 Oil Equivalent Reserves	Company	Worldwide Liquids Reserves, Million Barrels	Worldwide Natural Gas Reserves, Billion Cubic Feet	Total Reserves in Oil Equivalent Barrels, Million Barrels
1	Saudi Arabian Oil Company (Saudi Arabia) 3	259,900	253,800	303,285
2	National Iranian Oil Company (Iran) 3	138,400	948,200	300,485
3	Qatar General Petroleum Corporation (Qatar)	15,207	905,300	169,959
4	Iraq National Oil Company (Iraq)	115,000	119,940	134,135
5	Petroleos de Venezuela.S.A. (Venezuela)	99,377	170,920	128,594
6	Abu Dhabi National Oil Company (UAE)	92,200	198,500	126,132
7	Kuwait Petroleum Corporation (Kuwait)	101,500	55,515	110,990
8	Nigerian National Petroleum Corporation (Nigeria)	36,220	183,990	67,671
9	National Oil Company (Libya)	41,464	50,100	50,028
10	Sonatrach (Algeria)	12,200	159,000	39,379
11	Gazprom (Russia)	0	171,176	29,261
12	OAO Rosneft (Russia)	17,513	25,108	21,805
13	PetroChina Co. Ltd. (China)	11,706	57,111	21,469
14	Petronas (Malaysia)	5,360	82,992	19,547
15	OAO Lukoil (Russia)	15,715	28	15,720
16	Egyptian General Petroleum Corp. (Egypt)	3,700	58,500	13,700
17	ExxonMobil Corporation (United States)	7,744	32,610	13,318
18	Petroleos Mexicanos (Mexico)	11,048	12,578	13,198
19	BP Corporation (United Kingdom)	5,492	41,130	12,523
20	Petroleo Brasilerio S.A. (Brazil)	9,613	12,547	11,578
21	Chevron Corporation (United States)	7,087	22,140	10,870
22	Royal Dutch/Shell (Netherlands)	3,776	40,895	10,767
23	ConocoPhillips (United States)	6,320	25,438	10,668
24	Sonangol (Angola)	9,035	9,530	10,664
25	Petroleum Development Oman LLC (Oman)	5,500	30,000	10,628
26	Total (France)	5,778	25,730	10,176
27	Statoil (Norway)	2,389	20,319	5,862
28	ENI (Italy)	3,925	11,204	5,840
29	Dubai Petroleum Company (United Arab Emirates)	4,000	4,000	4,684
30	Petroleos de Ecuador (Ecuador)	4,517	NR	4,517
31	Pertamina (Indonesia)	903	20,538	4,414
32	EnCana Corp. (Canada)	927	13,300	3,201
33	Occidental Petroleum Corporation (United States)	2,228	3,843	2,885
34	China National Offshore Oil Corp. (China)	1,490	6,232	2,555
35	Devon Energy Corporation (United States)	998	8,994	2,535
36	Anadarko Petroleum Corporation (United States)	1,014	8,504	2,468
37	Repsol YPF (Spain)	952	8,137	2,343
38	Canadian Natural Resources (Canada)	1,358	3,666	1,985
39	XTO Energy (United States)	308	9,441	1,922
40	Ecopetrol (Columbia)	1,450	2,439	1,867
41	Chesapeake Energy Corp. (United States)	124	10,137	1,856
42	Talisman Energy Ltd. (Canada)	749	5,464	1,683
43	Apache Corp. (United States)	1,134	2,446	1,552
44	EOG Resources (United States)	179	7,745	1,503
45	Romanian National Oil Co. (Romania) 2	863	3,550	1,470
46	BHP Billiton Ltd (Australia)	565	4,727	1,373
47	BG Group PLC (United Kingdom)	393	5,572	1,345
48	Hess Corp. (United States)	885	2,668	1,341
49	Marathon Oil Corp. (United States)	650	3,450	1,240
50	Shell Canada Ltd. (Canada)	808	1,400	1,047

Notes:

¹ Ranked in order of 2007 worldwide oil equivalent reserves as reported in "OGJ 200/100", Oil & Gas Journal, September 15, 2008.
² Information from Energy Information Administration Country Analysis Briefings.
³ OPEC member