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With the huge decline in the crude oil prices and increase in the pumping of Oil in the World market is a favorable environment for Oil importing Nations

India: In an interview with the owner of world's largest refining complex and Reliance Industries chairman, Mukesh Ambani said that India would benefit from the fall in crude oil prices that is expected to continue for the next 3-5 years following the decrease in the demand from economically slowing China and no abatement in production of oil from OPEC and non-OPEC countries. He also said that it would mop up incremental revenue for India thereby narrowing the fiscal deficit.

TechSci Research depicts that decrease in consumption coupled with increase in supply of crude oil and political unrest in Middle East will have a cumulative impact in depressing crude oil prices and as India meets more than 80% of its crude oil demand from imports so any changes resulting into the prices of crude oil will have direct impact on India. As the prices of crude oil start to increase, therefore, to reduce the import dependence, the Government of India (GoI) is mulling a prolonged strategy to increase E&P activities in India by positive policy action like auctioning marginal and small fields. Increase in E&P activities will lead to increase in the demand for Oilfield Services in India.

According to a released report of TechSci ResearchIndia Oilfield Services Market Forecast & Opportunities, 2020”, the oilfield services market is projected to surpass USD7.87 billion by 2020. With more number of blocks being awarded via NELP rounds i.e. 261 blocks being awarded so far from NELP-1 to NELP-9, has boosted exploration and production activities from 2000 till 2012 which is further estimated to grow with increasing number of contracts signed under NELP, which will increase the market for oilfield services by 2020.

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