OIL MARKETING COMPANIES (PRIVATE SECTOR)

Prepared By: Faizyabparveen Shaikh (20161015)

Deep Modh(20161009) Jvalent Jani (20161021)

Shivam pandey (20161052) Tushar Panja(20161057)

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To identify few oil marketing companies in private sector.

Compare these companies on the basis of various parameters concerning their operations as a whole.

Objective

Companies Identified

Essar Oil•The first private company in India to enter the refined products marketing sector.

•A pan-India network of 2,100 retail stations, it reaches every corner of the country covering the national and state highways and the rural areas.

•Supplies high-quality petrol and high-speed diesel.

Reliance Industries Limited•Petroleum refining and marketing (R&M) is one of the major link in Reliance's drive for growth and global leadership in the core energy and materials value chain.

• Its refinery at Jamnagar processes a wide variety of crude oils and produces a range of petroleum products for exports as well as supply in the Indian market.

Petronas• Owns three refineries in Malaysia and one in Durban, South Africa.

•The petroleum products produced from these refineries are marketed through its network of service stations around the world.

•Aside from leading the petrochemical business in Malaysia, it is also one of the largest producers in Southeast Asia.

ExxonMobil•ExxonMobil has presence in India through chemical, downstream and upstream businesses.

• Chemicals business is conducted as a service provider to and marketing agent for other ExxonMobil affiliates, facilitating imports, provide business analysis.

• In the downstream sector, its operations include the import of base oils, lubricant oil blending, packaging, and distribution and marketing of Mobil-branded lubricants and specialties.

Parameters for Comparison

1. Types of Products

2. Market Factors

3. Innovation

4. Environment Sustainability

Types of Products

Essar Oil RIL Petronas ExxonMobil

Liquefied Petroleum Gas

Liquefied Petroleum Gas

Crude Oil Commercial Vehicle Lubricants

Superior Kerosene Propylene Lubricants Passenger Vehicle Lubricants

Air Turbine Fuel Naptha Base Oil Industrial Lubricants

Petcoke Gasoline Vehicle Fuels Bitumen

Furnace Oil Aviation Turbine Fuel Aviation Fuels Aviation Lubricants

Bitumen Superior Kerosene Oil LPG Natural Gas

Sulphur High Speed Diesel Marine Lubricants

High Speed Diesel Sulphur

Petrol Petroleum Coke

Market Factors

MarketFactors

Essar Exxon Mobil

Reliance Industries

Ltd.

Petronas

Total Revenue (in US billion

$)

27 268.9 73.10 59.1

Capacity Utilization (%)

100-105 86.7 110 98.3

Refining Capacity (BPD)

405000 1176000 1240000 500000

Gross Refining Margin

($/Barrel)

8.37 8.6

Retail Outlets 2100 20000 1700 2500

Market factors

Essar Exxon Mobil

Reliance Industries

Ltd.

Petronas

Distribution Region

Pan- India

North America,

Europe, Asia Pacific,

Middle East

USA, Europe, Middle East,

South-east Asia

Africa, Asia

Pacific,Latin

America,Europe,

USAMarket Share Domestic

Refining: 10%

Domestic Retail

market- 3%( with

RIL)

Downstream: 40.8%

Domestic Retail

Market- 3%( with Essar Oil)

Global Market Share: 5%-6%

Innovation

Essar Oil

•Partnered with SAP to build mobile applications in areas of sales force and dealer automation, customer connect, warehouse and travel management; to enhance technology and mobility on move.

•Marketing: The widespread network has created an excellent land bank resulting in the development of Non-Fuel Retail (NFR).

Reliance India Limited

•Innovations are carried out by Reliance Technology Group

•Ventured into areas like biomass gasification, CO2 Utilisation, and Nanotechnology based application.

Petronas• Uses technology through business diversification and monetisation of non-conventional carbon feedstock as replacement for petroleum based products.

• Produces base oil product for drilling which is a non-polluting alternative in oilfield drilling applications.

• It has forayed into a floating LNG facility

ExxonMobil

• Leads in one of the most important next-generation technologies: carbon capture and sequestration (CCS).

• Committed to investing in research and development of next-generation technologies across a broad spectrum of promising frontiers – both directly and in partnerships with leading institutions such as MIT, Stanford, and Princeton. 

Environment Sustainability

Essar Oil

•Undertook steps such as: installation of additional exchangers, replacement of process cooling tower fans by energy efficient fans, and periodic steam survey, which helped reduce energy consumption by 25 giga calories per hour

•Carried out detailed hydrological study, under refinery premises, to explore potential of recharging aquifer system, enabling watershed structures in entitled area to enhance ground water resources.

Reliance Industries Limited

•Recycled water as a percentage of total water consumed was 55.05% in production and manufacturing divisions.

• Made significant investment in shale gas exploration in USA to unlock huge potential in context of unconventional hydrocarbons.

Petronas• Promotes efficient use of water, materials, managing emissions and waste.

•Efforts are ongoing to strengthen internal processes and capabilities in areas of waste identification, handling, and disposal.

•Promoted energy generation using solar PV technology

ExxonMobil• In the year 2014-15, reduced greenhouse emissions by 21.5 million tonnes.

• Upgraded the biological oxidation (BIOX) wastewater treatment system at the refinery, that helped reduce the refinery’s overall reportable releases to the environment, including air emissions, water discharges and offsite waste transfers, by 30 %.

Conclusion

ExxonMobil and Petronas have a large global presence, but comparatively very less penetration in the Indian market.

While Indian market is dominated by public sector OMCs, RIL and Essar Oil are the major private players.

Reliance has the highest refining capacity, with higher revenue and gross refining margin.

Essar Oil has higher number of retail outlets than RIL

THANK YOU