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Oil & Gas Industry Report - India

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Oil & Gas Industry Report - India
The oil and natural gas sector comprises of exploration and production of crude oil, natural gas, refining and marketing of the petroleum products, which are classified as upstream, downstream and midstream.

Industrial Research on India - Oil & Gas Sector
July 2012, BIM Trichy
Arjun Venugopal, Divakaran, Revathy Prasad, Sreejesh N, Vincent

Ministry of Petroleum & Natural Gas

Government of India

Domestic Production Natural Gas (52.22 bcm) Petroleum (37.7 MMT)

Imports Natural Gas (13 bcm) Petroleum (87.97 MMT)

Upstream Pipelines (174.96 MMTPA, 19300 km)

Refineries (200.02 MMTPA)

Petroleum Products (206 MMT)

Petrochemicals (15.54 MMT) Midstream

Natural Gas

Downstream

Users

Figure 1: India - Oil & Gas Sector - Snap shot BIM Trichy | INDUSTRY RESEARCH – OIL & GAS 1

INDUSTRY OVERVIEW
The oil and natural gas sector comprises of exploration and production of crude oil, natural gas, refining and marketing of the petroleum products. The oil and natural gas are classified under primary, nonrenewable, commercial sources of energy. Crude oil and Natural gas are found under the earth’s surface between folds of rocks and in areas that are porous. Natural gas is lighter than air and is mostly made up of methane gas. Natural gas is usually found underground near petroleum reserves. Crude oil is measured in barrels (one barrel=159 litres) whereas Natural gas is measured in Billion Cubic Metres. The crude oil is classified into different types based on specific gravity expressed in degrees and sulphur content by API (American Petroleum Institute). Based on API degrees, the crude oil is classified as light, heavy and intermediate. Based on the sulphur content, the crude oil is classified as sweet if low and sour if high. Two crude oils which are traded were Brent and Western Texas Intermediate (WTI). WTI crude oil is light (39.6 degrees of API gravity) and contains only 0.24 percent of sulphur. Brent Crude is light and sweet but not light
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