Students with aim/ goal/ objective of this PROJECT WORK…!!! mainly will focus on capital discipline, increasing customer centricity, and investments in new technologies may help companies navigate effects on economic, geopolitical, and regulatory uncertainties occurring in the year 2025.
About Us The objective of establishing the “Indian Institute of Petroleum and Energy” (IIPE) is to meet the quantitative and qualitative gaps and to supply skilled manpower for Petroleum Sector. The Institute also aims to boost the research activities needed for the growth of the sector. Learn, Experience, and Implement is what IIPE strives for and inculcates the same in the students. The IIPE is an autonomous institute under the Ministry of Petroleum and Natural Gas, Govt. of India, and is backed by public sector Oil and Gas giants’ viz. HPCL, IOCL, ONGC, GAIL, and OIL. The top management of these companies constitutes the Governing Council of IIPE along with the academic experts.
Department of Management Studies conducted a Management Development Workshop on Project Management in Refining, Marketing and Gas Sector during February 19th – 21st, 2020 at Noida.
There were 48 participants from Oil companies and two students from the Institute who participated in the above workshop. The objective of the 3 days’ workshop was to enhance understanding of issues, techniques, concepts and managerial judgement related to projects in Oil and Gas Sector. The Workshop was convened under the guidance of Shri M. B. Lal, Ex – Chairman, HPCL and Member, RGIPT BoG. Eminent Industry Experts having over 3 decades of experience in project management in refinery/ marketing projects. The faculty gave insights to the participants by discussing case studies with hands on experience and in class simulation that spans the entire process of project management.
The workshop and study enriched the knowledge of the delegates to respond more effectively to their own services, enhancing expertise and in improving the productivity and quality of work. Contract Management is an important area of Project Management and it is essential that the clauses of the contract are studied thoroughly since, the impact is on the time and cost. The participants were shown innovative techniques and models to track various activities of the project.
Director, RGIPT during his valedictory address gave examples of effective project management techniques and informed the delegates that the project manager's role is very critical while implementing any project. He emphasized that learning from the program to be shared with their colleagues which will be beneficial for the organization. He congratulated the faculty for the excellent knowledge sharing and skills to the participants. He complemented Shri M. B. Lal and Shri D. N. Mathur for organizing the above Workshop which has been beneficial to the participants.
Shri M. B. Lal, Ex – Chairman, HPCL and Convener of the program complemented the faculty for their excellent deliberation and shared his own experiences of Project Management which were very useful for the delegates.
“Oil and Natural Gas” (ONG)
Information on Oil India Limited Detailed information of the “Oil India Limited” (OIL) is provided for the users by the “Ministry of Petroleum and Natural Gas” (MPNG). Users can find information on exploration, productions of crude oil, supply of gas to consumers, sale, and financial performance of the company.
Oil and Natural Gas Corporation Limited (ONGC) Get detailed information about the “Oil and Natural Gas Corporation Limited” (ONGC). Information is provided on business activities, shareholding, awards, marketing and trading etc. Annual reports are also available.
Gail India Limited “Information about the GAIL” (India) Limited and its various business activities is provided. Users can find information pertaining to business, corporate social responsibility, stakeholders, environment clearance and sustainable development etc. Information about the Gail management, joint ventures, milestones, awards, business and LPG transmission etc. is given.
Ministry of Petroleum and Natural Gas Users can find detailed information about the Ministry of Petroleum and Natural Gas and its various functions which include exploration and production of oil and natural gas, refining, distribution, marketing, import, export, conservation of petroleum products and “Liquefied Natural Gas” (LPG) in the country. Information is provided on the ministry’s flagships programs, petroleum conservation...!!!
Petroleum and Natural Gas Regulatory Board Detailed information about the “Petroleum and Natural Gas Regulatory Board” (PNGRB) and its functions is given. Users can find information related to voluntary consumer organizations and natural gas pipeline project etc. One can also find regulations, orders, guidelines, and events etc.
Oil India Limited Users can get detailed information about the “Oil India Limited” (OIL). Information is given about the company’s mission, vision, projects, management and Board of Directors etc. Details pertaining to business such as exploration, production, drilling and pipeline works etc. are given. Information related to the global presence and business of the company is also provided.
Oil Industry Safety Directorate The Oil Industry Safety Directorate is a technical directorate under the Ministry of Petroleum and Natural Gas that formulates and coordinates the implementation of a series of self – regulatory measures aimed at enhancing the safety in the oil and gas industry in India. Detailed information is given on the major activities of the Directorate, “Oil Industry Safety Directorate” (OISD) purchase standard, events and safety auditors...!!!
Oil Industry Development Board You can get detailed information about the “Oil Industry Development Board” (OIDB). Information about the Board’s vision, mission, functions, financial results, programs, new initiatives, IT initiatives, etc. is given. You can also get the annual reports, publications, newsletter, etc.
Maharashtra Natural Gas Limited Detailed information about the “Maharashtra Natural Gas Limited” (MNGL) and its various activities is given. Users can find information related to the corporates, shareholding, products, and piped natural gas etc. Details of “Compressed Natural Gas” (CNG) outlets are also available.
Indian Oil Corporation Limited (IOCL) Get information about the “Indian Oil Corporation Limited” (IOCL). Users can find information about the company’s vision, mission, objectives, corporate governance, group of companies etc. Details of major units and projects of the company are also given. Information about the products such as gas, auto gas, natural gas, kerosene and petrochemicals etc.
Petroleum Planning and Analysis Cell Detailed information about the “Petroleum Planning and Analysis Cell” (PPAC) of Ministry of Petroleum and Natural Gas is provided. Users can find information related to petroleum and natural gas production, consumption, export and import etc. The government notifications and petroleum laws are given already.
In 2024, the crude oil and natural gas market navigated a complex landscape of controlled OPEC+ supply and variable demand, heightened geopolitical tensions, macroeconomic weakness, and a continued focus on energy transition. This resilience is reflected in the stability of oil prices: Brent crude oil prices exhibited a minimal average monthly change and a monthly range – bound movement between US $ 74 and US $ 90 per barrel in 2024, making 2024 one of the most stable years in the past 25 years. Globally, the oil and natural gas industry distributed nearly US $ 213 billion in dividends and US $ 136 billion in buybacks between January 2024 and mid – November 2024 (Figure 1).
In the Year 2025 Energy, Resources, and Industrials Outlooks By prioritizing high – return investments and maintaining a focus on production efficiency, oil and natural gas companies have worked to ensure robust financial performance and retained investor trust. Over the last four years, the industry’s capital expenditures have increased by 53%, while its net profit has risen by nearly 16%. In fact, oilfield services reported its best performance for the 2023 to 2024 period in the past 34 years. Additionally, some companies are engaging in increased investments in low – carbon technology projects to help balance the risks associated with the traditional oil and gas market. These investments will likely help companies position themselves as key players in the future energy landscape and goals drastically changing scenario overall around @ global scale.
TABLE OF CONTENTS The “Permian Basin” (PB); Oilfield Services;
National Oil Companies; Refining and Marketing;
Global Energy Policies; Way Forward;
The “Permian Basin” (PB): Repositioning for growth; Oilfield Services: Emerging from the Shadows; National Oil Companies: Breaking Barriers; Refining and Marketing: Navigating under Uncertainty; Global Energy Policies: Government Priorities to Come into Play;
The “Permian Basin” (PB): Repositioning for Growth The “Permian Basin” (PB) is synonymous with US oil and gas production, contributing to 46% of US crude oil production, 20% of US gross natural gas production, 51% of rig count activity, and nearly 40% of the total mergers and acquisitions deal value in the US upstream sector in 2024. In fact, the basin’s oil production is growing at an annual average of 485 kilo barrels per day (kbbl/ d) — equivalent to Colombia’s annual consumption — highlighting its importance in both domestic and international energy marketplaces. But with great significance and rapid growth come formidable challenges (Figure 2).
Waha Woes Relative strength in crude oil prices — the US oil – to – gas ratio is at a 10 – year high of 40: 1 — has incentivized leading operators in the “Permian Basin” (PB) to prioritize oil operations, resulting in an abundance of associated natural gas production. Additionally, large shale operators are exploring tier 2 and tier 3 acreage — which are generally much more gas – heavy — to help offset flattening production from their tier 1 acreage, unlock invested capital, and test new productivity and cost – efficiency measures. The result: The “Permian Basin” (PB)’s natural gas production has nearly doubled to 25 billion cubic feet per day (Bcf/ d) in the last five years. However, the takeaway capacity of natural gas remains highly constrained in the basin, with natural gas pipeline utilization exceeding 90% in 2024, pushing regional Waha Hub spot prices below zero level. As of early September 2024, prices at the Waha Hub were below zero for 46% of trading days in 2024, including every day since July 26.
However, new midstream infrastructure, such as the 2.5 Bcf/ d Matterhorn Express Pipeline, which began transporting natural gas in October 2024, is expected to alleviate some bottlenecks. In addition to Matterhorn, three new “Permian Basin” (PB) pipeline projects with a combined capacity of 7.3 Bcf/ d are in various stages of development and are expected to be completed between 2026 and 2028. However, any slowdown in shale production growth over the next 6 to 18 months, especially if large shale operators reduce their drilling and completion activity due to weak prices, could lead midstream companies to shift their focus toward optimizing existing pipelines, rather than constructing new ones. Some major midstream companies have already highlighted this cautious investment approach for the “Permian Basin” (PB).
Stable production and timely completion of pipeline projects can help reduce volatility in natural gas prices and support the broader “Liquefied Natural Gas” (LNG) export market, but also meet the rising power demand driven by increasing numbers of data centers. It is projected that data centers will consume 9% of US electricity by 2030, driving over 3 Bcf/ d of new natural gas demand by the end of the decade.
Growing Responsibly Over the past decade, US upstream companies have prioritized capital discipline, digital transformation, and strategic acquisitions to grow profitably. This strategy contributed to a 7% rise in their net income from 2014 to 2023, despite an 18% drop in oil prices. In the coming year, companies will likely adapt their strategy to address challenges including low oil prices, peaking productivity gains (with rigs in the Midland basin having drilled an average of 47 miles of horizontal lateral wells over the year to June 2024), an all – time low inventory of drilled but uncompleted wells at 4,500, and the forecasted resurgence in global liquids consumption that is expected to increase by 1.5 MMbbl/ d (million barrels/ day) in 2025. Against the backdrop of major acquisitions, eyes will be on US shale majors to share and execute their “What’s Next…?” strategy for the “Permian Basin” (PB).
Consolidating acquired assets and leveraging investments in new technologies, while benefiting from strengthening natural gas prices due to new pipelines, will likely support the profitable growth strategy of shale majors in 2025. However, a bigger prize could be in how shale majors rethink their tier 2 and tier 3 acreage across shale basins. By adopting new re – fracturing, enhanced oil recovery, and innovative completion techniques, they have the potential to enhance their capital returns and well productivity. Development in tier 1 acreage is growing by 5% to 10% annually in the Bakken Shale Play, while tier 2 acreage is growing by 20% annually.
Additionally, by implementing new water – treatment protocols and oil – skimming technologies, shale majors may also strive to reduce their environmental footprint and costs associated with managing produced water. In fact, the industry’s cost of reusing water now stands at US $ 0.15 to US $ 0.20 per barrel, which is cheaper than the disposal cost of US $ 0.25 to US $ 1 per barrel.
M and A Frontiers With nearly US $ 136 billion in deals since 2023, the upstream sector has seen major M and A consolidation in the “Permian Basin” (PB). However, higher acreage prices and limited high – quality acquisition targets in the basin, combined with favorable financial markets, may lead to increased drilling and buying activities in other basins, primarily Eagle Ford and Bakken. In fact, the availability of acquisition targets and re – fracturing opportunities, without significant infrastructure constraints, makes these basins strong rotational candidates for the short to medium term. In the first three quarters of 2024, these two basins have already seen a buying interest of around US $ 7.7 billion. This competition, or rotation, can be necessary and healthy. Not only can it reduce the concentration risk on the “Permian Basin” (PB), but it can also bridge the valuation gap across the shale basins, keep the overall production profile of US shale basins stable, and help bring back private equity or venture capital players. This is especially true in the US upstream sector, where public company consolidations offer more favorable valuations for undeveloped inventory, compared to private equity buyouts, with premiums remaining modest at 10% to 15%.
Oilfield Services: Emerging from the Shadows In the last 10 years, the oilfield services sector has lagged behind the rest of the oil and gas industry, as efficiency and productivity gains in the shale market reduced the business and margins of this sector. Simply put, the sector became a victim of its own technological success for its customers, reporting US $ 155 billion in losses between 2015 and 2021. However, there are visible signs of a reversal in fortunes. Over the last three years, the sector’s net income has cumulatively exceeded US $ 50 billion. Currently, its capex is at the highest level, while net debt is at one of its lowest points since 2016 (Figure 3). Similarly, oilfield services M and A deal – making within the first nine months of 2024 reached US $ 19.7 billion, the highest since 2018. In fact, oilfield services companies seem to be repeating what their upstream shale customers did years ago — growing profitably without a commensurate increase in capex. There are several drivers of this change, with each having different implications for companies in the upcoming year.
Student’s tasks will be required to undertake in order to successfully complete the PROJECT WORK…!!!
Innovating the Core The sector’s transformation can be attributed in part to a strategic blend of innovation and cost – reduction measures. Oilfield companies are leveraging their digital capabilities to deliver high – margin, lower – carbon solutions to their customers. For example, SLB is developing an all – electric subsea infrastructure aimed at reducing costs, improving efficiency, and lowering carbon emissions. Concurrently, these companies are often implementing various cost – reduction measures, including restructuring operations, exiting non – profitable business lines, implementing variable cost management programs, and streamlining corporate structures. These initiatives have yielded substantial financial benefits — for instance, NOV Inc. reported US $ 75 million in annualized cost savings and Weatherford reported a 160 – basis – point increase in gross margin. By recalibrating its strategies, the sector has navigated the challenges posed by reduced demand for certain services, while continuing to drive efficiency and maintain capital discipline.
Transitioning into Energy Technology Some oilfield services companies are transitioning into “Energy Technology Companies” (ETC) by diversifying their portfolios to include low – carbon ventures such as carbon capture and hydrogen generation. They are building niche capabilities in these areas and expanding their customer base, thus decoupling their business from the energy industry’s cyclicality. For example, Baker Hughes is developing supercritical carbon dioxide turbo expanders to support NET Power’s low – cost, emission – free, carbon – capturing power system. Similarly, SLB is developing an integrated direct lithium – extraction solution that could be significantly faster than traditional methods, while lowering resource usage, thereby possibly reducing operational costs. Additionally, cross – sector partnerships are being leveraged to develop advanced technologies — for instance, SLB and Baker Hughes are collaborating with Genvia and Air Products, respectively, to create new solutions for producing clean hydrogen. These new technology solutions are expected to drive the long – term growth of oilfield services companies, with companies like Baker Hughes targeting approximately US $ 6 billion to US $ 7 billion in new orders by 2030.
References; Own Source and Resources; {Especially Designed for Marketing People/ Students/ Dealers/ Corporate Sectors Exclusively like Automobile Industries; Aviation Industries; Universities/ Colleges/ Institutes/ Esteemed Organizations in terms of Students Studying in the streams like (BA/ MA/ BBA/ BCA/ MBA/ MCA) B. Sc./ M. Sc./ B.E./ B. Tech./ M.E./ M. Tech./ Ph. D./ Post – Doctoral programs in Civil and Mechanical Engineering ++ All branches of Engineering/ Applied Sciences/ Marketing etc. etc.} ++ Department of Engineering Mathematics and Computing Recommended in the BoS Meeting of “Department of Engineering Mathematics & Computing” held on 04th December, 2024; Course Name: Sustainability and Environmental Science Course Code: 25241211;
