Oil and gas exploration in India analysis of associated service industry

Abstract

Global energy consumption in the next two decades is slated to increase significantly, particularly in emerging economies. The extent of increase may be noted from the fact that energy consumption ofNon-OECD1 countries is expected to be 68% higher by 2030. Further this consumption will account for93% of global energy consumption. The production of oil and gas is expected to grow in all regions, particularly in Asia. As on date India is the fifth largest energy consumer after US, China, Russia and Japan. India with its projected GDP growth of 8-9 % is slated to be one of the fastest growing economies and India s energy needs are expected to treble by 2035.3 (refer Annexure A for macroeconomic indicators of India).Increased requirements are both a challenge and an opportunity for all stakeholders viz. Government and Industry. Oil and Gas exploration is a capital intensive industry. The associated services industry in this sector comprises of companies having specialized technical expertise and skilled manpower. There exist a number of Indian as well as Global players in this service sector. Our focus was to study the dynamics of this specific industry which is unique because of relatively very few Indian players.