Oil & Gas Company-I: Which directions should it be transiting towards?
If you are a large Indian oil & gas company, which direction do you go from here in a rapidly transiting world? 8One way is to follow the leads taken by international oil & gas super majors. They have more people deployed to figure out which way the world is going than any Indian company. And their horse sense can be trusted, for they have serious money following up on their instincts. 8Some of these companies have chalked out clear future business transformation processes, all of which, they claim, are capable of delivering double digit return on capital. 8Biofuels, hydrogen and electric vehicle charging are the obvious choices. 8Public sector OMCs can clearly leverage their vast retail outlet networks for electric charging as and when the electric vehicle revolution breaks out in India. They are also investing in biofuels and IOC, in particular, has been for long an advocate of hydrogen as a fuel. 8But there are other more specialized areas in which the super majors are now concentrating. 8The rapid transformation in the power sector is where the attention of at least one super major is focused. Around 20% of energy is currently consumed as electricity, and with the transition towards a lower-carbon energy system, electricity’s share could grow to more than 50% of the energy mix by 2060. 8The power industry is changing -- with more volatility, intermittent supply and intermittent demand. This is an area with vast opportunity to trade, integrate, and optimise. 8In India, this segment of the industry is vulnerable and oil & gas companies can break entry barriers here with an asset light, technology heavy approach Click on Reports to know more