Crude oil prices reached USD52.26 per barrel as of June 08, 2016
India: The oil & gas industry
was undergoing a major setback due to fall in the oil prices which had reached
a lower level of USD27.82 per barrel as on 20 Jan 2016 which was the lowest
since 2003. Low oil prices have put
a huge impact on the domestic drilling and production activities as a result of
which, many projects have been kept on hold due to price fluctuations. However,
as of June 08, 2016, the crude oil prices reached USD52.26 per barrel. For the
upstream companies, the prices between USD50 per barrel to USD70 per barrel would
be a positive sign thereby attracting huge investments that would further
revamp the drilling and production activities.
TechSci Research depicts the ongoing
exploration of hydrocarbons will have a major impact on domestic production.
India meets 80% of its crude oil demand through imports leading to huge import
bills. The domestic increase in production will help reduce the budget deficit.
It will also lead to increased investment by private sector in India’s oil and
gas exploration industry. The ongoing Exploration & Production (E&P)
activities will give a major boost to India Oil Field Services market.
According
to a released report of TechSci
Research, “India Oilfield Services Market Forecast & Opportunities, 2020”, the country’s oilfield services market is projected to
surpass USD7.8 billion by 2020, on account of anticipated increase in oil and
gas E&P activities. Government’s decision of auctioning 69 idle oil and gas
fields of state-owned ONGC and Oil India to private companies on new revenue
sharing model is expected to boost oil and gas E&P over the next five
years, which in turn would fuel growth in the country’s oilfield services
market through 2020.