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.