INDIAN OIL INDUSTRY AT A GLANCE IN 2015 - 2016 The oil and gas industry is among the six core industries in India and plays a major role in shaping the Indian economy. The Indian oil and gas industry was worth US$ 139.8 billion in 2015. Indias economic growth is related to energy demand; hence the Indian oil industry is one of the pivots of the country. The government has allowed 100 per cent Foreign Direct Investment (FDI) in the oil sector. Backed by new oil fields, the Indian domestic oil output is anticipated to grow to 1 MBPD by FY16. Gas consumption is likely to expand at a Compound Annual Growth Rate (CAGR) of 21 per cent during FY0817.
The country's gas production is expected to touch 90 Billion Cubic Metres (BCM) in 2040 from 35 BCM in 2013. Gas pipeline infrastructure in the country stood at 15,808 km in December 2015. The State-owned Oil and Natural Gas Corporation (ONGC) accounts for approximately 68 per cent of the countrys total oil output (FY14).
Indian Oil Corporation Limited (IOCL) operates 11,214 km network of crude, gas and product pipelines, with a capacity of 1.6 MBPD of oil and 10 MMSCMD of gas. This is around 30 per cent of the nations total pipeline network. IOCL is the largest company, operating 10 out of 22 Indian refineries, with a combined capacity of 1.3 MBPD.
According to data released by the Department of Industrial Policy and Promotion (DIPP), the petroleum and natural gas sector attracted FDI worth US$ 6.64 billion between April 2000 and December 2015. By 2015-16, Indias demand for gas touched 124 MTPA against a domestic supply of 33 MTPA and higher imports of 47.2 MTPA, leaving a shortage of 44 MTPA.
