Importing Crude Oil for Indian Refineries – Future Strategies for Tonnage Requirements
19 Pages Posted: 11 Jan 2012
Date Written: January 11, 2012
As India is opening up its regions of oil & gas Exploration, Production, Refining and Marketing and is set to become a potential exporter in this multi-billion dollar industry. India is well placed to be a major player in the hydrocarbon value chain as it has 20 refineries with a total refining capacity at over 179 MMTPA and is emerging as an international destination for oil refining. It is expected to enhance its refining competence by 45% in the next 5 years and is becoming a significant exporter of petroleum products.
India being the 4th and 6th largest consumer of oil and importer of oil respectively, imported about 72% of our total oil consumption in the year 2004-05. During the year 2008-09, Indian refineries have imported 132 million metric tonnes and our import requirement is expected to increase to 91% by 20304 as our demand for crude oil has been increasing every year but production being stagnant since last five years. For meeting out import requirement lot of vessels (crude oil tankers) will be required in future.
For importing more than seventy percent of our crude oil requirement, our Indian refineries will have to take lot of vessels. This paper assesses/analyzes the crude oil import scenario, the number of vessels required for importing the crude oil from different countries and to estimate the tonnage requirement for shipping industry in the coming future so that the Indian shipping industry can take an advantage of this big emerging opportunity.
Keywords: oil and gas, tonnage, exploration, production, crude oil import
JEL Classification: F14, F21, F43, L20, L90, Q40
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