India stands out as the world's fastest-growing economy, with the oil and natural gas industry assuming a pivotal role in bolstering the nation's economic prosperity. This industry contributes significantly by powering transportation networks, driving manufacturing processes in mills and factories, and offering lucrative investment opportunities for investors seeking substantial returns.
The oil and natural gas sector occupies a prominent position among India's eight core industries, exerting a profound impact on the nation's economic landscape. Its historical significance is evident, considering it is one of the oldest industries in the country. The industry's initial development was characterized by a slow and steady progression, primarily commencing in the northeastern region, notably in Diadoi, Assam.
In 1970, the production and exploration of petroleum in the northeastern states faced restrictions, leading the Government of India to introduce the Industrial Policy Resolution of 1954. This policy, under the purview of the Ministry of Petroleum and Natural Gas, was designed to foster the growth and promotion of industries across India. The government took complete ownership and control of all pertinent activities within the oil and natural gas sectors. Subsequently, with the advent of liberalization and privatization in India, the private sector also became actively involved in this industry. Notably, the industry now allows for 100% foreign direct investment (FDI).
The oil and natural gas sector encompasses a spectrum of processes and activities, including exploration, refining, petrochemicals, transportation, and the marketing of petroleum and natural gas products. It is categorized into three major segments: upstream, midstream, and downstream. Companies engaged in crude oil and gas exploration and extraction fall within the upstream category, while those involved in storage and production operate in the midstream sector. Companies engaged in refining, production, and marketing constitute the downstream sector.
