India is the fifth largest energy
consumer in the world with
primary commercial energy
consumption in 2004 of 375.8
Million Metric Tonnes of Equivalent
(MMTOE) (Source: bp statistical
survey 2005). In 2004, the
consumption of oil and gas formed
a major percentage in the world
energy consumption basket. In
India, however, coal dominated the
consumption basket.
Energy consumption grew at
an average compounded annual
growth rate (CAGR) of 3.8 per cent
in the period 1999-2005 with the
GDP growing at CAGR of 6.3
per cent resulting into a very
attractive GDP elasticity of little
above 0.6.
Overview of oil and gas sector
The significance of the Indian oil
and gas sector can be gauged from
the following facts:
* Largest contributor to the
national exchequer in 2004-05with
taxes amounting to US$ 27 billion.
* Oil and Gas constituted 40
per cent of primary energy source
in 2004.
* India is sixth largest crude oil
consumer in the world with
consumption at 119.3 MMT in 2004.
* Petroleum, oil lubricants (PoL)
imports is 28 per cent (Source: PwC
Analysis) of the total imports of
India and PoL exports is eight per
cent of total exports for 2004-05.
* All five Indian companies
appearing on the fortune 500 list
operate in the Oil and Gas sector.
* India is ninth largest crude oil
importer in the world.
Demand and supply overview of
crude oil and natural gas
India met 75 per cent of its crude
oil demand through imports. The
domestic production of crude oil
has been in the range of 32-34
MMT over the past few years.
About 60 per cent of its crude
imports are from the Middle East.
The consumption of natural gas
grew at a CAGR of 2.7 per cent in
the period 1999-2005 supported
by rise in availability through
domestic and imported sources
of gas. The imports through
LNG route commenced in
early 2004.
....CONTD
