India's Best Upstream & Downstream Oil Companies

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India's Best Upstream & Downstream Oil Companies
11 Feb 2023
5 min read

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In light of Russia's invasion of Ukraine, crude oil prices worldwide have reached all-time highs. The supply networks have collapsed as a result of a noticeable increase in demand. Until the Organization of Petroleum Exporting Countries (OPEC) increases production, the oil market will experience its worst supply crisis in decades. The cost of vital commodities may rise if oil prices continue to rise.

India's oil consumption is expected to double from its present levels to 11 million barrels per day by 2045, according to an OPEC prediction. The Indian government has implemented a number of policies and subsidies to promote upstream and downstream oil industries in response to the rising demand for petroleum products. In upstream and private sector refining projects, 100% foreign direct investment (FDI) has even been permitted.

We'll take a closer look at India's Best Upstream & Downstream Oil Companies in this blog post.

One of India's eight main sectors is the oil and gas industry. It has a significant impact on all important facets of our economy. Oil companies can be broadly categorised into two groups: upstream and downstream, depending on how they operate and where they fit into the supply chain for crude oil and its byproducts. These businesses are essential to the development of India's economy since they handle everything from oil exploration and production to distribution.

Learn about India's key upstream and downstream oil companies in this article.

India's Best Upstream & Downstream Oil Companies

Upstream oil companies

Crude oil and natural gas are found and produced by the upstream sector. This entails looking for potential oil fields, digging test wells, and determining whether they have the capability of producing a significant amount of oil. The businesses operating in this sector also bring surface-recovered natural gas and crude oil. Exploration and Production (E&P) corporations are another name for such organisations. Research and development (R&D) efforts are extremely important to them. Geologists, scientists, engineers, and seismic specialists are among the employees of E&P firms.

Geological surveys employing electronic equipment and artificial intelligence (AI) are essential for modern oil exploration . Over the past few years, mechanical drilling and fracking equipment has progressed and become more effective.

Oil & Natural Gas Corporation (ONGC)

Oil & Natural Gas Corporation (ONGC) The largest producer of crude oil and natural gas in India is Oil and Natural Gas Corporation (ONGC) Ltd. The extraction of oil is the main focus of its operations. About 71% of India's total crude oil production is accounted for by this corporation.

Nearly 105 oil drilling rigs and 74 workover (portable) rigs are operated by ONGC. Over 11,000 kilometres of oil pipelines are under its possession throughout India. The petroleum extracted by ONGC is used as a raw material by downstream oil businesses like Indian Oil Corp. (IOCL), BPCL, and HPCL.

In the business, the Government of India (GoI) owns a 60.4% majority share. The Ministry of Petroleum & Natural Gas has administrative supervision of ONGC. You may read more about the powerhouse of energy here.

Oil India Limited (OIL)

Oil India Limited (OIL) is a state-owned company that discovers, develops, and produces natural gas and crude oil both domestically and abroad. 1,157 kilometres of cross-country crude oil pipelines are run by the firm. In Assam, West Bengal, and Bihar, it also owns 10 crude oil pumping stations, 13 drilling rigs, 14 work-over rigs, and 14 work-over rigs.

In the Mahanadi Offshore, Mumbai Deepwater, and Krishna Godavari Deepwater New Exploration Licensing Policy (NELP) blocks, OIL holds participation interests. Additionally, it participates in a number of offshore projects in Venezuela, the United States, Sudan, Nigeria, and Libya.

Reliance Industries Ltd

One of the main private participants in the Indian upstream oil sector is Reliance Petroleum, a division of RIL. Dhirubhai Deepwater (DD) KG-1 and DD KG-2, two well-known oil rigs in the Bay of Bengal, are operated by it. The Jamnagar oil refinery, which is owned by Reliance Industries, is also the biggest refinery in the world. 1.97 lakh cubic metres of crude oil can be produced there every day!

Larsen & Toubro Ltd

Numerous projects involving oil extraction and processing are being worked on by the top engineering and construction firm. Additionally, L&T provides essential tools and systems for oil and gas projects. The company's hydrocarbon business serves every step of the hydrocarbon value chain, including the processing of oil and gas, petroleum refining, chemicals, and petrochemicals.

BP Plc

London is home to the multinational British oil and gas corporation BP Plc. The business established a joint venture (JV) in India with Reliance Industries Ltd. in 2020. The JV, which operates under the "Jio-bp" brand, seeks to dominate India's gasoline and transportation industries.

Downstream oil companies: 

Petroleum products are refined, manufactured, and marketed by downstream oil firms. Petrochemical plants, fuel retailers, and oil refineries make up this market segment. They sell a variety of goods, including gasoline, diesel, natural gas, jet fuel, plastics, synthetic rubber, insecticides, and pharmaceutical chemicals. Thus, downstream oil firms are in charge of managing the crucial final processes of refining and turning crude oil into finished goods that are then offered for sale to end users.

Indian Oil Corporation Ltd (IOCL)

In India, IOCL is involved in petroleum product refining, transportation, research & development, and marketing. Petrol, diesel, lubricants, greases, aviation fuel, commercial fuels, and marine oils are among its offerings. The state-owned business runs 7 overseas subsidiaries, around 15,000 km of crude oil and gas pipelines, and 11 refineries throughout India. A 32% market share belongs to IOCL in the downstream oil sector.

Hindustan Petroleum Corporation Ltd (HPCL)

In India and around the world, Hindustan Petroleum Corporation Ltd. (HPCL), a division of ONGC Ltd., refines and sells petroleum products. The business sells lubricants, greases, aviation turbine fuel, liquefied petroleum gas (LPG), kerosene, gasoline, diesel, and naphtha. Additionally, it sells and exports bitumen, marine lubricants, and jet and marine gasoline.

A total of 18,634 retail locations, 6,192 LPG distributors, 46 aviation service facilities, and 41 oil and gas ports made up HPCL's operating network as of March 2021. Two refineries owned by the firm are located in Mumbai and Visakhapatnam. A 25% market share has been attained by HPCL in the downstream oil industry.

Bharat Petroleum Corporation Ltd (BPCL)

In India, BPCL refines crude oil and sells petroleum-based goods. Its network of over 15,402 fueling locations sells gasoline, diesel, liquefied petroleum gas (LPG) for automobiles, and compressed natural gas. Additionally, the business provides jet fuel, gear oils, greases, and car engine oils to airlines. In Mumbai, Bina (Madhya Pradesh), Numaligarh, and Kochi, BPCL runs oil refineries. 2,241 km of multi-product pipelines are run by them.

In the downstream oil market in India, BPCL holds a 24% market share.

Conclusion 

The majority of the aforementioned oil businesses are now slowly shifting to renewable energy sources, nevertheless. Natural resources for crude oil, hydrocarbons, natural gas, and other fossil fuels are finite. In recent years, these supplies have been fast running out. There will come a time when oil is in short supply. India has committed to reducing its GDP's proportion of carbon emissions by 33% to 35% from 2005 levels by 2030. By 2025, the government wants to increase the nation's use of renewable energy by twofold, reaching 20%.

To assist India in achieving these lofty goals, major oil firms are making significant investments in green energy initiatives and infrastructure for EV charging stations. Let's anticipate how they carry out their strategic plans.

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