Petroleum Industry

-By RAM JR 
Introduction - Rohan
 Petroleum Industry is considered to be the back bone of an
economy because this is the main source of energy till date. Any
economy around the world would fail to proceed a single step in the
absence of Petroleum Industry.

 The petroleum industry involves the refining of crude petroleum

and the processing of natural gas into a multitude of products ,as well
as the distribution & marketing of petroleum derived products.

 The price of petroleum is determined by the demand-supply

mechanism around the globe. Petroleum is not a domestic product
and any kind of shortage in the same has serious ramifications on all
possible industries along with the economies all over the world.

 Petroleum Industry always need to perform exploration research

all over the world for finding more petroleum sites which also
become instrumental in the setting up Petroleum Industry
History - Rohan
 Petroleum exploration & production was
controlled by the Government-owned
National Oil Companies (NOCs), ONGC and
OIL.
 By the end of the 80s, Oil production had

begun to decline whereas there was a steady

increase in consumption .
 Today the two NOCs are able to meet only

about 35% of the domestic requirement

Relationship with World Petroleum
Industry - Rohan
Performance of Petroleum Industry -
Ajantha
 http://pib.nic.in/feature/feyr2000/fjan2000/
f180120001.html
Effect of petroleum industry on other
industries - Ajantha
Major Players - Ajantha
 ONGC
It is a public sector petroleum company in India
contributing 77% of India’s crude oil production.
Revenue (2006): $ 10.5 billion
 IOCL

◦ It is India's largest commercial enterprise, with a sales

turnover of US $36.537 billion.
Creation of Petroleum Products – Raj
Classification of Petroleum Products
- Raj
Market share – MJ
22
11
18

IOC
HP
ESSAR
ONGC
RELIANCE
20 OTHERS
28

1
SALES(IN CRORES) 2008-2009 MJ

134073.43
BHARAT PETROLEUM

64003.99
ONGC IOC
38106.35 HP
ESSAR
ESSAR
124934.83
HP

IOC 307123.99
Net Profit(After Taxes in crores) MJ

BHARAT PETROLEUM 2528.77

ONGC 9578.96
IOC
HP
ESSAR 747.91
ESSAR
ONGC
HP 816.83
BHARAT PETROLEUM

IOC
15564.71
Number of employees MJ

RELIANCE

ONGC 43000
IOC
31000
ESSAR HP
24000
HP ESSAR
11245
ONGC
IOC
RELIANCE
0 34158
10000
20000
30000
40000
50000
BCG Matrix MJ
Total sales & projected growth JS

 THE TOTAL OPPORTUNITY IN THE OIL AND

GAS SECTOR IS EXPECTED TO REACH US$35
BILLION TO US$40BILLION BY 2012
Future of Petroleum Industry JS
 http://business.mapsofindia.com/india-
petroleum-industry/future-of-indian-
petroleum.html
Working with Petroleum Industry JS
Advantages
• The petroleum industry in India is one of
the harbingers of huge economic growth.
• Petroleum industry has come up as a mass
employer.
• Demand for petroleum is growing in leaps
and bounds.
• The contribution of this industry towards
the economic growth of the country is
enormous.
• The oil industry has been a source of much
advanced technology and many new
products that have changed our lives for
the better.  with changing conditions.
Disadvantages
• Petroleum Industry always need to perform
exploration research all over the world for
finding more petroleum sites which also become
instrumental in the setting up Petroleum
Industry.
• Price and availability of crude oil and gas as
feedstock are critical factors.
• A large percentage of people do not want to
move geographic locations, so employment is
major issue during relocation.
• Petroleum is basically a non-renewable form of
fuel which is subject to extinction from the world
after a certain point of time.
• Extensive study as well as research is required
Thank you