refinery in India

Importance of Oil and Petroleum Refineries in India

One such company is the Nayara Energy that is one of the top leaders of petroleum and oil refineries in India.

The Indian oil and gas sector is rising with daily demands for energy products. As a global supplier, India has opened its gate to collaborations with major companies to cover a maximum of 15 percent share of the GDP by the oil and gas industry in India. The competition is stiff and there are many private and public sector run oil and gas companies that are competing at very neck to neck level. As the products and services in this sector are important, thus it becomes necessary for every company to mark its position with calculative strategies and focus on maximum profitability. One such company is the Nayara Energy that is one of the top leaders of petroleum and oil refineries in India. As a downstream oil company, they are the second-largest producers of crude oil. Their refinery in Vadinar, Gujrat contributes to 8 percent of India’s total refining capacity that is massive. The well-designed oil refinery is constructed for taking forward the hydrocarbon value chain from refining to retailing with the vision of delivering crude to chemicals.

The oil industry is seen through two spheres;

1. Upstream

Upstream, deals primarily with the exploration and initial production stages of the oil and gas industry. As this is the first step, it becomes essential that petroleum exploration occurs in a highly-potential area where one can find petroleum deposits. The geophysical and geochemical analysis is done using techniques including induced polarization (IP) surveys, drilling and assaying, electrical currents, and so on. Once the resource is found then the next step is to set up wells and extract the resource.

2. Downstream

Downstream, plays the role of refining of petroleum, oil, and other gases into finished products. Down streaming works on refining crude oil into gasoline, natural gas liquids, diesel, and other energy products. The refining process gives a firm an additional opportunity to directly market their products to the customers. Most of the oil companies supply petroleum, and gas products to medical companies, agricultural companies, and other customers in the domestic and global market. The major products produced are gasoline, synthetic rubber, plastics, heating oil, lubricants, antifreeze, fertilizers, and pesticides.

Benefits of Oil and Petroleum refineries in India

Increased demand for various Petroleum Products

As per the information of the Indian oil and gas sector, the demand for petroleum products is estimated to reach 244.960 MT by 2021-22 at a CAGR of 10%. The increase in demand also shows that larger consumption of these products has been seen especially in medical services, agricultural areas transportation, and producing electricity. Every oil and petroleum refinery in India can benefit from the oil and gas market and make paths for maximizing their revenues.

Building more Retail Outlets

The Indian oil and gas sector has made important assessments. The total number of fuel retail outlets increased from nearly 18,848 in 2002 to more than 64K in 2019 at a CAGR of 7.5%. State-owned marketing companies are planning to plant nearly 78K new fuel retail outlets. As per the given information, the demand for petrol pump dealership will take rise as the newcomers like non-oil companies can now join hands with big private and public sector companies to become an investor and a profit maker in the Indian energy market.

Exporters and Promoters

The government has recently opened a path for foreign direct investment in the field of oil and gas industry. Hence, the ever-growing Indian economy has become the largest exporter of petroleum products in Asia. A variety of products rich in diesel, natural gas, LNG biogas, and petrol are high in demand. Hence, to increase global outreach the investment from abroad will help the economy is earning maximum profit through different oil and petroleum refineries in India.

India focusing to emerge as a top global energy market has to meet the need of its customers within the country, and abroad. India has to emerge as a supplier to those who have developed good partnerships with them worldwide. The negative fall of GDP can be revived if, the 15 percent share of the oil and gas industry is utilized 100 percent. This will ensure the profitability and availability of desired products and services and growth of every oil and petroleum refinery in India.

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