Indian’s oil and gas exploration and production will see an investment of USD 58 billion by 2023. The old fields are being developed to increase their oil generation capacities and field development plans worth USD 13.6 billion have been recently approved. India holds 160 terabyte information on sedimentary basins as per The National Data Repository (NDR) which if opened will mean and endless possibility of oil exploration in the country. More than 50 proposals seeking a few ten thousand sq. km area for oil exploration have already been received by the department. These figures certainly indicate the future of oil exploration industry which at the least can be termed as bright.
India is the one of the fastest growing economy in the world. As it grows, the demand for energy will continue to grow, which is why India presents tremendous opportunities in the oil exploration sector. As most of the country’s fuel requirement is met by exports that cost us a huge price, the government is continually committed to produce a self-sufficient stream of energy by exploring the huge number of sedimentary oil basins that the country enjoys. Technological advancements in oil exploration and extraction have also increased India’s competence in the sector, giving it another strong reason to accelerate. It is thus crucial for India to hold the reins and take a stride soon in development of this industry and strengthening its fuel generation capacity.
Given the global demand for oil and its increasing valuation, the sector is prone to various risks. Man made risks such as terrorism and thefts, cyber risks, errors and omissions, product recall, professional liability, legal and pollution risk are few risks that accompany the sector. Risks also involve injury or disability caused to employees, property and rig damage, price volatility, operational risks, risks in supply chain management, riggers legal liability, etc. With the multitude of risks involved, a sound policy that can insure the complete business lifecycle is imperative.
