India’s Untap Oil Import Market

India’s Untap Oil Import Market

Oil The beginning of this years has proven to be a strong start for India’s oil production. India imported 4.93 million bpd (barrels of oil per day) in January. Per Thomson Reuters Oil Research & Forecast report.

India is the third oil importer shipping 13.6 percent more oil than last December. India imports about 80 percent of its oils, they are one of the primary key players for the global oil demand.

With the rising prices in crude and increasing demand, India’s import bill rises to 42.6 percent from a year ago to a staggering $11.66 billion.

The U.S Energy Information Administration report is forecasting India will supersede China as the growing oil product in Asia market, with fuel increasing demand by 6.1 percent this year alone.

With new refinery in full operations, January production reached 5.27 million bpd. Which is a 280,000 bpd higher than a year earlier.

With Spring maintenance coming ahead, the production runs are higher across all India’s region. With the extension of Kochi and Bathinda plants an additional 170,000 bpd has been produce. With a 300,000 bpd at Paradip refinery, all refineries are operating at full capacities

Reliance Industries, operator of the biggest refining complex in western India, has reported a 30 percent increase in its capacity export focused plant

With its anticipating growth in fuel demand, India has expanded the refining capacity to meet its demand.

India is planning to boost its refining capacity by 77 percent to 8.8 million bpd by 2030, according to a government report

With increase in importing crude BP, Rosneft, Saudi Aramco and Total are showing an interest to enter the market of the growing Indian fuel market.

As new players are ready to enter this untap market, we should continue to watch this year how India’s market grows.  This untap market landscape is about to change providing a stronghold for India’s economy across the region.