INDIAN OIL INDUSTRY AT A GLANCE IN 2021 - 2022
The oil and gas sector is one of the eight core industries in India that influences its economy in a major way. India retained its spot as the third-largest consumer of oil in the world as of 2021. Crude oil imports rose sharply to US$ 94.3 billion in FY22 from US$ 70.72 billion in FY17.
As of 2021, India's oil refining capacity stood at 248.9 million metric tonnes per annum (MMTPA), making it the second-largest refiner in Asia. Private companies owned about 35% of the total refining capacity. IOC is the largest domestic refiner, with a capacity of 69.7 MMTPA.
India's crude oil production in FY22 till January stood at 32.2 MMT. India's consumption of oil products stood at 201.26 MMT in 2021, a 3.7% YoY increase. India's oil consumption stood at almost 4.9 million barrels per day (BPD) in 2021, up from 4.65 million BPD in 2020.
Exports of petroleum products from India reached 56.8 MMT worth US$ 21.41 billion in FY21.
Natural Gas IndustryIndia's LNG import stood at 7.9 billion cubic meters (BCM) between October-December 2021. The import for the entire year stood at 24.46 BCM. India is the fourth-largest LNG importer in the world.
According to the International Energy Agency (IEA), consumption of natural gas in India is expected to grow by 25 BCM, registering an average annual growth of 9% until 2024. The Gas Authority of India Ltd. (GAIL) had the largest share (57.56% or 18,834 kms) of the country's natural gas pipeline network (32,718 kms).
Industry Investments
India has allowed 100% Foreign Direct Investment (FDI) in many segments of the sector, including natural gas, petroleum products and refineries, among others.
According to the data released by Department for Promotion of Industry and Internal Trade Policy (DPIIT), FDI inflows in India's petroleum and natural gas sector stood at US$ 7.98 billion between April 2000-December 2021.
Industry ForecastAccording to a research report, primary energy demand in India is expected to nearly double to 1,123 million tonnes of oil equivalent, as the country's gross domestic product (GDP) is expected to increase to US$ 8.6 trillion by 2040. India's energy demand is expected to double to 1,516 Mtoe by 2035 from 753.7 Mtoe in 2017. Moreover, the country's share in global primary energy consumption is projected to increase to two-fold by 2035.
Crude oil consumption is expected to grow at a CAGR of 4.66% to 500 MMTPA by 2040 from 201.26 million tonnes in 2021.India's oil demand is projected to rise at the fastest pace in the world to reach 10 million barrels per day by 2030, from 4.9 million barrels per day in 2021.
Natural Gas consumption is forecast to increase at a CAGR of 12.2% to 550 MCMPD by 2030 from 174 MCMPD in 2021.
Diesel demand in India is expected to double to 163 MMTPA by 2029-30.
