oil & gas industry final

8/8/2019 Oil & Gas Industry FINAL

1/21

Industry AnalysisOil and Gas Industry


2/21

Agenda

1 Industry Value Chain & Structure

2 Market Size & Growth

3 Industry Segments

4 Competition

5 Issues & Concerns

6 Outlook


3/21

1.a Industry Overview

& %il Gas Industry accounts for 15.f The GDP

.ndia a net importer of crude oil .ndia is emerging as a refining hub .he industry is highly organized


4/21

ESMIC SURVEY.ovt NELP

EXPLORATIONPRODUCTION

SHIPPING&EFININGBLENDING

STORAGEDISTRIBUTION

MARKET

UPSTREAMDOWNSTREAM

, , / ,xploration appraisal of a discovery development of oil gas fields production of oi

, ,on of petroleum products storage in terminals and marketing of petroleum products in

1.b Industry Value Chain & Structure


5/21

& % ;il Gas Industry accounts for 15 of the Indian GDP . %;AGR of India s crude consumption is 5 9 ->et Sales of Major companies have increased India

.merging as a refining hub

:ource Annual Reports

2. MARKET SIZE AND GROWTH


6/21

REASON uge gap between

;emand and supply ;epreciating Dollar

SOARING CRUDE OIL PRICES -GLOBALLY


7/21

INDIAN CRUDE OIL BASKET

Indian crude basket lower thanNYMEX Brent crude but stillhigher than average crudeprice for the year

Price seems to be dipping innear future as Crude has

.corrected from highs


8/21

3.INDUSTRY SEGMENTS

&XPLORATION PRODUCTIONREFININGMARKETING


9/21


10/21

, . ; %f crude oil during 2006 07 was 21 474 71MMT PSU 80 Private Play , .duction during 2006 07 was 11 823 50MMT

, . ( )gas in 2006 07 was 44 506 75m cubic metres MCMon has increased

: . .Source www ibef com

3.1.2 PRODUCTION


11/21

q

q % -HPCL promises strong growth with around 11 growth in 2007 2008qq .BPCL expansion project of 5 1 MMTPA commissionedq

q MRPL has received orders from Mauritius governmentq

q

: . .Source www ibef com

3.2 REFINING


12/21

,s the market leader with roughly 5000 LPG distributors 11739 retai, ;s followed by BPCL HPCL and IBP IBP is now a part of IOCL

, -layers are Shell Essar and ONGC retail outlets only

: . .o urce www b usi ne ssw ee k c om

MARKETING


13/21

ntial demand from fragmented industries on gas availability%segment constitute 70 of the demand

hunk may come down because of low incremental urea demanddustrial sector may grow as various entities may find gas cheaper t

SECTOR WISE GAS DEMANDBREAKUP


14/21

-al consumption during 2006 2007 was 128 MMT- .esel has the maximum consumption 46 08MMT

sumption of ATF increased compared to previous year due to increase in theconsumption also increased comparatively as it was viewed as a good subs

: . - .Source www domain b com

CONSUMPTION PATTERN


15/21

, . . , f customs duty and taxes i e the government s share.rol at pumps we people pay Rs 28 tax extra

PRICE BREAK-UP


16/21

4.1 PORTERs ANALYSIS

4.2 HERFINDAHL INDEX

4. COMPETITION ANALYSIS


17/21

-hreat Of New Entrant MODERATECapital Intensive Business.Govt. regulation is a big hindrance as a large number of licenses are

required.FDI Norms relaxed, Foreign players can enter in JVs but Govt. pricingpolicy discourages.Bargaining power of supplier-HIGH

Highly dependant on international pricing mechanism, has to import bulkof crude oil.Competition among rivals-MODERATE

Oil exploration- Only few major players are allowed to bid under NELP.

Only PSUs are operating, no private participation.

Bargaining power of buyers- LOW

Prices are fixed by the govt. thus no choice for retail buyers.

Threat of substitutes-LOW

Technically, Economically not viable


18/21


19/21

5. ISSUES & CONCERNS

- % ; %or PSU FDI 49 in refining activities 100 FDI in;rivate refining companies ;overnment issued oil bonds worth 13943 crores Oil;ompanies can access maximum 1500cr daily

:ELP Commitment to invest of about US$5 billion inxploration phases :atural Gas In PSC the incremental revenue fromroduction is disproportionately in favour of government

.stablishment of bio fuel on PPP basis

Regulations


20/21

. OUTLOOK .ower profit margin for OMC .igher subsidy bill for govt which will

ncrease if crude edges Northwards igher crude realizing greater profit

argin for refining companies ubsidized selling by ONGC to continue

-ffecting the bottom line &any new E P players entering in offshorerilling so great room to expand in

segment


21/21

THANK YOU

oil & gas industry final

Documents