Future of Indian Petroleum Industry

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The future ofIndian petroleum industry has good potential but it needs developmental activities in this sector to strengthen itself.

The world at present is experiencing a lot of changes of mammoth proportions. The Petroleum Industry inIndia is one of the harbingers of huge economic growth. The arena for business has now gone global since trade boundaries are fast dissolving. These developments presentIndia with tremendous opportunities in the future to be one of the major players in the export of petrochemical intermediaries.

Today,India imports more than 70% of its oil requirements. The search for more oil ledIndia to sift through the international markets comprising of the emerging energy-trading countries - China, Russia, and Iran.India has made new partnerships with Venezuela, Burma, Middle East nations, and Pakistan.

The long-term energy strategies ofIndia have to emphasize on the methods of using energy effectively and efficiently, and to enhance energy self-sufficiency. To lift theIndian economy to enhanced economic standards innovation, diplomacy, creativity, and vision are the need of the hour.

India has to compete for conventional energy sources and for that there must be developmental activities for energy efficient buildings and vehicles. The main problems with the Petroleum Industry inIndia are related to infrastructural developments. The lack of proper storage facilities, enhancements in refining capacities, and fluctuating import prices plays important role in the development of the sector.

The target of improvement for the growth of the economy forIndia should be in the area of the petrochemical sector. The need for intermediary products for the manufacturing of the end use products is an important sector to tap in. With the per capita consumption for the petrochemical products inIndia being low and the production of these products being high,India may become one of the leading exporters of such intermediary products.

The future of Indian petroleum industry depends on:

  • Demand for petroleum is growing in leaps and bounds
  • Shifting focus to more production of olefin - ethylene, propylene, butadiene,
  • Price and availability of crude oil and gas as feedstock would still be critical factors
  • The demand of the end products would affect the demand of the intermediary products

Last Updated on 13 December 2011