OIL & NATURAL GAS INDUSTRY

OVERVIEW SUMMARY
 INTRODUCTION
 HISTORY
 PROCESS & USES
 SWOT ANALYSIS
 COMPARATIVE STUDY
 VISION & MISSION
 CONCLUSION
 BIBLIOGRAPHY
INTRODUCTION
Oil and Natural Gas Corporation Limited (ONGC) is India's leading oil & gas
exploration company. ONGC has produced more than 600 million metric tonnes of
crude oil and supplied more than 200 billion cubic metres of gas since its inception.
Today, ONGC is India's highest profit making corporate. It has a share of 77 percent
in India's crude oil production and 81 per cent in India's natural gas production.

ONGC has a fully owned subsidiary, ONGC Videsh Ltd (OVL) that looks for
exploration opportunities in other parts of the world. OVL is pursuing exploration of
oil and gas in Russia, Iran, Iraq, Libya Myanmar and other countries. ONGC has
also acquired 72% stake in MRPL with full management control of the 9.69 tonne,
state-of-the-art refinery.
HISTORY
Oil & Gas sector has a long history in India
Oil struck at Makum near Margherita in Assam in 1867
First commercial oil discovery in Digboi in 1889
Systematic E&P in 1899 after Assam Oil Company formed 1947

India’s domestic oil production just 250,000 tonnes per annum

1954 IPR - petroleum to be core sector
1955 – ONGC set up
1958 - First Gas & Oil pool discovered in Jwalamukhi (Punjab)

and Cambay. Oil India Limited (OIL) was set up

Discovery of giant Bombay High field in 1974 – Western offshore

highest producer
1991 – Liberalized petroleum exploitation and exploration policy
PROCESS
OIL :
 Crude oil usually consists of a mixture of hydrocarbons having varying molecular
weights and differing from one another in structure and properties. These various
species are separated into groups, or fractions, by a process of distillation called
refining.
 The oil is first heated to a vapor, then passed upward through a tower containing

trays at various levels.

 The vapors are very hot at the bottom, but become cooler as the rise, so that different

fractions condense in the trays at different heights.

 The lighter the fraction the higher up it condenses. In an average crude oil the

fractions, beginning with the lightest, are: (1) dissolved gases, (2) petroleum ether,
(3) gasoline, (4) kerosene, (5) gas oil, (6) lubricating oils, (7) fuel oils, and (8)
asphalt.
 Because so much gasoline is needed, ways were developed to break down the larger

molecules of the heavier fractions to produce it. This process is called "cracking"
and may be accomplished by subjecting these fractions to high temperature and
pressure, or by employing a chemical catalyst.
 NATURAL GAS :

 Natural gas is a highly flammable hydrocarbon gas consisting chiefly of methane

(CH4). Although methane is always the chief component, it may also include other
gases such as oxygen, hydrogen, nitrogen, ethane, ethylene, propane, and even some
helium.
 The gas is found entrapped in the earth's crust at varying depths beneath impervious

strata, such as limestone, and may or may not be in association with oil. If oil is
present it is called wet gas, else dry gas. Deposits are fairly widely distributed,
however, in the contiguous US only Texas and Louisiana are net exporters. All of the
other states use more gas than they produce. The gas is drawn from wells, similar to
oil wells, and is usually transported by pipelines, sometimes a thousand miles or more.
 As a fuel, natural gas is convenient and efficient. It is used primarily for heat, in

industrial, commercial and residential settings. In many homes the house and water
are heated by gas, the food is cooked with it and clothes dried. It is also used to
produce electricity, in many cases using gas fired turbines that are similar to jet
engines.
 Gas has the great advantage of producing no smoke or ash on burning, although it is

usually much more expensive than coal as a fuel.

 E&P Infrastructure
 Globally comparable Production & Transportation
facilities240
 Onshore Installations 194
 Offshore Installations > 22,000 Km
 Pipelines 30
 Offshore Supply Vessels 25

E&P Infrastructure
• State-of-the-art exploration facilities 28
• Seismic Crews 79
• Drilling Rigs 78
• Work Over Rigs 108
• Well Stimulation Units
USES
• Oil has very wide range of uses in industry, commerce ad agriculture. It has
contributed very significantly to modern civilization, which would not be able of
function without it.
More than half of the world's output goes into the transport network as jet fuels in
aircraft, petrol for cars and diesel for trucks, buses, taxis, ships and tractors.

• Much oil goes to thermal plants for generating electricity. It is also a major source
of industrial fuel in boilers, furnaces and machines and pumps in factories. It is
extensively used for heating and lighting in homes, offices, shops and factories.
Kerosene is use d in lamps in villages and in light buoys and lighthouses.

• It is used as a lubricant to grease and service machines, motor vehicles, equipment

and appliances. Petroleum by- products and petrochemicals from oil refineries are
used in wide range of manufactures such as plastics, fertilizers, adhesives and
carbon black for making carbon paper.
• Most oil wells also yield natural gas, which is exported as LNG, in especially made
refrigerated tankers that stores the gas at a temperature of 185 Celsius. LNG
accounts for 20% of the world's energy output and is used for lighting, heating and
generating thermal electricity
INDIA : OIL & GAS PRODUCTION
ONGC accounted for 79% of
Domestic oil & gas production in FY’09

OI
L 7%
% ONGC L
10 OI
ONGC 77%
t. %
81% Pv JV9 Pvt.JV16
%

Crude Oil Production Natural Gas Production

(2008-2009) (2008-2009)
 PRIMARY ENERGY

India, the 5th Largest Consumer of Primary Energy

2,299 ONE of the

largest
2,003
growing
3.84% of total market for
energy
685
507
433
330 311 258
240 228

a
a ny e r ic il
US INA S IA N d ia nad a nc Af az
CH RU
S PA In C a rm a Br
JA Ge Fr ut
h
So

PRIMARY ENERGY CONSUMPTION (MTOE)

SWOT ANALYSIS
Strength :
 ONGC Ltd is percieved to be the leader in oil production industry.
 ONGC has very efficient and professional management team.
 ONGC being an international company has sufficient resources and capital to
invest.
 ONGC has ISO-9001 and ISO 14001 registration.
Weakness :
 ONGC facing difficulties to produce oil from aging reserviors.
Opportunity :
 Energy utilization of buried coal resources (700-1700M) estimated 63 BT –
Equivalent to 1500 BCM.
 ONGC facing difficulties to produce oil from aging resources.
Opportunity :
 Energy utilization of buried coal resources (700-1700M) estimated 63 BT –
Equivalent to 1500 BCM.
 ONGC facing difficulties to produce oil from aging resources.

Threat :
 Security of personal and property especially crude oil continues to be a cause of
concern in certain area.
 In some exploration campaign company involves high technology ; High
technology , high investor and high risk.
VISION AND MISSION
 To be a world-class Oil and Gas Company integrated in energy business with dominant
Indian leadership and global presence.    
 World Class   Dedicated to excellence by leveraging competitive advantages in R&D
and technology with involved people.
 Imbibe high standards of business ethics and organizational values.
 Abiding commitment to safety, health and environment to enrich quality of community
life.
 Foster a culture of trust, openness and mutual concern to make working a stimulating
and  challenging experience for our people.
 Strive for customer delight through quality products and services.
 Intergrated In Energy Business   Focus on domestic and international oil and gas
exploration and production business opportunities.
 Provide value linkages in other sectors of energy business.
 Create growth opportunities and maximize shareholder value.      Dominant Indian
Leadership   Retain dominant position in Indian petroleum sector and enhance India's
energy availability.
 India
Overview Of India’s Energy Sector Rest of World

6%
1% 9%
%
99
91%

8% 19%
92%
81%
Major Achievements of ONGC
 Judged as Asia's best Oil & Gas company, as per a recent survey
conducted by US-based magazine 'Global Finance'
 Ranked as the 2nd biggest E&P company (and 1st in terms of
profits), as per the Platts Energy Business Technology (EBT) Survey
2004.
 Leads the list of Indian companies listed in Forbes 400 Global
Corporates and Financial Times Global 500 by Market
Capitalization.
 Only fully-integrated petroleum company in India, operating along
the entire hydrocarbon value chain.
 Holds largest share of hydrocarbon acreages in India.
CONCLUSION

 India’s total primary energy demand projected to grow 4 times

over next two decades while world energy grows 2 times in the
same period
 India offers attractive fiscal and contractual terms for
companies interested in E&P activities
 India emerging as a export hub for refined petroleum products.
 Natural gas market promises high growth potential following
large domestic gas discoveries and growing demand
 New regulatory reforms introduced to promote competitive
markets in the refining, marketing and natural gas segments
BIBLIOGRAPHY
 http://www.ongcindia.com
 http://www.ibef.com
 http://bpcl.com
PRESENTED BY ABHIMANYU GROUP
THANK YOU
THANKS
YTHNKOU
 FROM MOHD AABID SHEIKH