Oil is the single most important commodity that holds the position of a key factor in each and every economy of the world. India is one of the largest consumers of oil in the world. US tops the list of largest consumer of oil. India’s demand for oil is expected to grow at an annual growth rate of 3.6% whereas domestic production is expected to grow at approx...more

Oil is the single most important commodity that holds the position of a key factor in each and every economy of the world. India is one of the largest consumers of oil in the world. US tops the list of largest consumer of oil. India’s demand for oil is expected to grow at an annual growth rate of 3.6% whereas domestic production is expected to grow at approximately 2.5%. Oil sector is mainly classified into exploration, refining & marketing segments. 1 bbl = 153 litre. New Exploration Licensing Policy (NELP) was launched by the Government for accelerating the pace of hydrocarbon exploration in the country. Oil blocks are awarded under this policy. HPCL, BPCL, IOC are the oil marketing companies eligible for oil subsidy provided by the government. The upstream oil sector refers to the searching for and the recovery and production of crude oil and natural gas. The upstream oil sector is also known as the exploration and production (E&P) sector. The downstream oil sector refers to the refining of crude oil, and the selling and distribution of natural gas and products derived from crude oil. The oil industry classifies crude oil in three different ways based on geographic location, gravity (or American Petrochemical Institute) & sulphur content. The byproducts of crude oil are lubricating oils, diesel fuel, jet fuel, petrol, chemicals, liquefied petroleum gas, waxes, polishes, bitumen for roads and roofing, fuel for ships and factories & others include plastics (Ethylene and propylene), rubbing alcohol, medicines (e. g. Aspirin), rubber, etc. Aviation fuel is a specialized type of petroleum-based fuel used to power aircraft. Oil marketing companies set the prices of ATF based on vis-à-vis movement of crude.  hide