An important piece of business news at the moment suggests that India may expect to receive massive investment in the Oil and Gas sector in the forthcoming years.
As a matter of fact, in the next 8 or 10 years of time, one might see an investment worth $206 billion dollars in India’s Oil and Gas sector.
But nevertheless, let’s delve toward existential reality of the country.
2020, needless to say, being the pandemic-marred year strangulated India’s economic growth as well. What only exacerbated India’s woes was that, even before the pandemic jaded India’s economic situation, there already were several problems hurting the country:
1) A dearth in job situations
2) Sluggish economic growth
3) Contraction of the GDP
What didn’t help things anymore was the simple fact that in the immediate post-lockdown, there were more job losses and a situation cataclysmic to the extent that it truly highlighted the woes that no sugarcoated or hopelessly romantic narratives could hide.
Especially against that narrative, news that India’s Oil and Gas sector is hoping to (if not all set to, with absolute confirmation) receive investment in multiple of billions helps and in fact, helps massively.
That being said, just how is all of this all said to be achieved?
Not because anyone wishes to show penchant toward dubbing any positive piece of news as being something that’s ‘too good to be true!’
But because, it wasn’t that long ago where the country’s largest oil and gas producer- none other than ONGC- reported a loss of not less than INR 3,098 crore in the January-March quarter.
This is when during the same period, exactly, a year ago, it had reported a profit of INR 4,240 crore.
But that being said, here’s what a news published in Business Standard had to say. And therefore, it’s important to note the following:
With Prime Minister Narendra Modi addressing the top global executives at the India Energy Forum by CERA Week on Monday, it is expected he would further entice companies to promote an cor a self-reliant India. This when the domestic fuel market is recovering from the pandemic-driven decline.
The three-day forum will see participation from Dan Brouillette (US Secretary of Energy), Prince Abdulaziz (Minister of Energy of Saudi Arabia) and Sultan Ahmed Al Jaber (CEO of Abu Dhabi National Oil Company).
“The importance of such a global meet comes when you realise that the country is set to see such large investment this decade. This includes investments to the tune of $67 billion in gas infrastructure — LNG capacity increase, pipelines and CGD networks. Global players like Total, Exxon Mobil and Shell have shown their interests in this field” said a government official. He indicated that put together Reliance-BP, ONGC and Oil India, exploration and production scenario would see investment of around $59 billlion.”
All of that being said, there’s nothing more than India would want than receiving a big investment in a critical sector. But, whether or not that comes true, is something one would have to really see. For now, only the future can reveal what might actually happen.