The energy demands in India have increased rapidly. With such an increase in demand, it is only natural that the need for oil refineries would also increase, and this is where oil and gas engineering comes into play. Not only do they help meet domestic and industrial demands, but they also play a crucial role in offshore services.
Opportunities on the Horizon
Multiple opportunities come with the Oil and Gas industry, which also plays a crucial role in Offshore engineering. The table below shows the opportunities in detail.
| Topic | Key Points |
| Robust Demand Growth | Petroleum demand rising; mid-single-digit growth expected in FY24; 10% surge in FY23. |
| Long-Term Oil Demand | Forecast to reach 6.7 mb/day by 2030 and 8.3 mb/day by 2050 (up from 4.7 mb/day in 2021). |
| Diesel Dominance | Diesel demand to double by 2029–30; diesel & gasoline to make up 58% of oil demand by 2045. |
| Natural Gas Growth | Consumption to grow 25 BCM with 9% CAGR until 2024. |
| Strategic Gas Target | Gas share in energy mix to rise from 6% to 15% by 2030; >500% growth in gas demand expected. |
| Downstream Sector | Expansion via strategic petroleum reserves commercialisation & new storage facilities. |
| Investment Plans | ONGC to invest US$4B (FY22–25) for exploration. |
| Foreign Investment | 100% FDI allowed in upstream & private refining projects; encourages international investment. |
Challenges in the Industry
However, some challenges come with this. The table below explains the challenges.
| Challenge/Issue | Key Point |
| Environmental Compliance | Need to reduce carbon footprint and meet strict regulations. |
| Foreign Dependence | Reliance on imports risks supply disruptions and price spikes. |
| Refining Capacity | Shortage of refining capacity vs. demand. |
| Talent Shortage | Ageing workforce and limited new talent. |
| Price Volatility | Global market fluctuations affect prices. |
| Addressing Talent | Upskilling/reskilling programs to develop workforce skills. |
Conclusion
The oil and gas engineering industry has a lot of opportunities in India, as well as challenges that persist. The key would be to tackle these challenges effectively with a full-service maritime consultancy and alleviate them.