BUSINESS TO BUSINESS

MARKETING
ABOUT THE PETROLEUM INDUSTRY

The oil and gas sector is among the eight core industries in the Asian nation and plays a serious
role in influencing deciding for all the necessary sections of the economy. India’s economic
process is closely related to its energy demand, therefore, the requirement for oil and gas is
projected to grow additional, thereby creating the arena quite contributive for investment. The
Government has adopted many policies to fulfill the increasing demand. it's allowed 100%
Foreign Direct Investment (FDI) in several segments of the arena, as well as gas, fossil fuel
merchandise, and refineries among others. Today, it attracts each domestic and foreign
investment due to presence trusted firms like Reliance Industries Ltd (RIL) and Cairn Asian
nation. It contributes around 15% to India’s economy.

EFFECT OF COVID-19 ON THIS INDUSTRY

The expansion of the epidemic drastically brought down the demand and value of the crude. On
31st December when the outbreak of COVID-19 was noted around 61 percent fall was there
within the value of WTI crude resembling demand imbalance. Due to continuous lockdown, all
transportation was on break causing a decline in demand for fossil fuels except LPG and
domestic natural gas. It is anticipated that international oil demand could shrink by 15-20 million
barrels for the day, thanks to Corona’s impact causing misbalance in oil-consuming economies.
Also, a number of the oil exportation nations expected to go bankrupt coming time. Indian oil
companies, particularly the E&P house (upstream) like ONGC and Oil Asian nation, could face
robust times ahead due to exaggerated pressure to sell their product at lower costs ahead. The
refiners and distributors (downstream) like HPCL, Reliance, and IOCL are in hope for envision
of improved margins within the coming back quarters, once the demand picks up once more. As
for the storage, if the Indian corporations will manage their stockpile well, this is often an honest
time to shop for and reserve oil for future use.

MARKETING MIX (4Ps)

PRODUCT

• The product portfolio in its selling combine includes Indane gas, Autogas, fossil fuel,
petrol, diesel, jet fuel, lubricants & greases, kerosene, industrial fuels, Bitumen,
petrochemicals, and crude oil. They also help in running other industries like automobiles
and airlines by providing the core product for running. In the extraction of core product
• AI helps the associated corporations by developing algorithms that offer correct and
precise intelligence to guide drills on water and land. exactness drilling helps in reducing
the danger of accidents, oil spills, fires, and enhances the speed of penetration. They are
integrating the Internet of Things (IoT) into offshore instrumentality, staff can track and
monitor lifetime and different components that may have an effect on production, low
wave heights, temperature, and humidness.

PRICE

• Like the other government firms, the costs of merchandise are regulated for each oil
company, the valuation of price choices is taken by the central government after taking
into the thought of all the taxes and subsidies obtainable in its initiatives. the costs set are
completely different in different cities So, a geographical valuation mechanism is
followed during this pricing strategy the costs are divided into geographical locations like
railway system cities, State capitals, city, and region.
• AI technology is incorporated into the working of the industry which causes automation
of processes along with great efficiency and also decreases the cost of production thus
controlling the price.
 PROMOTION

• Promotional activities include mostly removing the allegation of environment

destructions, for example, companies like Shell and IOCL use sponsorship, collaboration
with B2B companies for promoting campaigns, and also earning points to give back to its
consumers.
• AI-powered chatbots facilitate oil and gas corporations to move with their customers by
providing data about the product, resolution of their queries, recommendations, etc.
Chatbots conduct surveys on their websites to gather client feedback and any enhanced
customer expertise.

PLACE
• Petroleum isn't distributed equally around the world. The quantity of oil and natural gas
produced isn't forever proportionate to the dimensions of its tested reserves. as an
example, the center East contains or so 50% of the world’s tested reserves, however,
accounts for under about thirty percent of world production (though this figure continues
to be beyond in the other region).
• Oil and gas corporations utilize AI-enabled drones to examine pipelines. These drones
record footage in period and discover cracks or leaks within the pipelines used for the
distribution process.
• Some well-known companies of this industry like Shell is additionally working with
partners to develop autonomous underwater vehicles (AUV) for subsea baseball diamond
examination and pipeline inspection.

APPLICATION OF AI AND ROBOTICS

• Accidents are monitored from AI-powered cameras, robots, drones, etc. to scale back the
extent of potential injury. Frequent scrutiny of kit and risk assessment can facilitate firms
in taking prognosticative measures to avoid unforeseen circumstances.
• Robotics is vital for the oil and gas business to reduce human exposure to risk.
Operations that are dangerous are presently done by humans are replaced by Robotic
 systems which have the potential to deliver a spread of safety and business edges and
some company like Shell is working with business partners, vendors, and educational
establishments to develop novel robotic systems (currently a system called SENSABOT)
for specific applications, the Sensabot system is used for plant examination and initial
response situations.
• The introduction of remotely operated aerial vehicles (ROAVs) to assess inaccessible
structures and therefore the Pet robot initiative that's developing robot systems for
internal examination of tanks and pressure vessels.
• AI and machine learning facilitate optimize the planning of oil wells, troubleshoot the
underperforming wells, drilling, enhance reservoir modeling, prognosticative and
preventive maintenance, finding sedimentary rock resources, etc.

CONCLUSION

Thus with a world health crisis and a few key trade developments, the oil and gas trade is gazing
a new normal of lower demand and later on lower crude costs. whereas the demand is anticipated
to extend because the world shakes out of the pandemic and OPEC+ normalizes its relation and
production quotas, trade players ought to be agile and nimble to survive within the new reality.
they have to concentrate on reworking their price chain and operations, reducing their value of
production, processing, and transportation. AI technologies will play a key half within the
transformation of the worth chain of the oil and gas trade.

REFERENCES

https://www2.deloitte.com/content/dam/Deloitte/in/Documents/energy-resources/in-enr-
CovidOilGasIndustryImpact-noexp.pdf

https://www2.deloitte.com/us/en/pages/energy-and-resources/articles/oil-and-gas-industry-
outlook.html

https://www.statista.com/statistics/1051145/india-oil-and-gas-sector-profits-to-gdp-ratio/
https://www.marketing91.com/marketing-mix-shell/#:~:text=for%20customer%20convenience.-
,Price%20in%20the%20Marketing%20mix%20of%20SHELL,expense%20of%20its%20consum
er%20base.

https://www.shell.com/energy-and-innovation/digitalisation/digital-technologies/shell-
ai.html#vanity-aHR0cHM6Ly93d3cuc2hlbGwuY29tL2Fp

https://qualetics.com/artificial-intelligence-in-oil-and-gas-applications-impact-
benefits/#:~:text=Applications%20of%20Artificial%20Intelligence%20in%20Oil%20and%20Gas
&text=AI%20helps%20these%20companies%20by,enhances%20the%20rate%20of%20penetra
tiont