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Penetrating Oil Industry - A Breakthrough to Know Indian Refineries

What is current market status of Penetrating Oil Industry? What is country wise competition in this industry, both country wise and business wise? What is Market analysis of Penetrating Oil Industry by taking various forms and applications in consideration? What is the potential of oil market penetration? What are the factors that affect penetration of oil market?


According to some analysts, China holds the top position in world in terms of market share. It has almost 15% of world market share in the LPG and natural gas industry. India is second with ten percent of world market share. Japan, South Korea and Taiwan have a little share. Some factors influencing market share - penetration of domestic economy, political environment, institutional setting, oil prices, technology adoption, quality of local raw material and many other aspects.


There are various reasons for penetration of oil in Asia and penetration of Asian countries to export their products. However, as per many industry players, one of the most important reasons for growth of oil refining and downstream oil and gas sector in Asia is - a flexible infrastructure, highly scalable and affordable. These factors make Asia an attractive proposition for investment for many oil and gas sector players.


In order to tap the east's largest petroleum reserve - the DPRK, several pipeline projects including the Hyundai-iralong-ilirimide, Shin Won-jong and Suwon-do-jong pipeline were proposed in north as well as northeast parts of Korea. These projects provide easy access to south Korean markets, significantly improving competitiveness. The projects are expected to start by year end. Similarly, in northeast Asia, several hydrocarbon explorations block in China's Jiningdong province and Tibet have resulted in major breakthroughs, providing large supplies of suitable gases and liquids.


Apart from these factors, there are numerous factors that need to be taken into consideration while choosing penetrating oils. Factors such as physical quality, physical quantities and relative availability of the raw materials are key elements in determining the demand in the market. Of late, there has been a rapid growth in the number of Chinese firms involved in the production, processing and distribution of oil and gas liquids. The sheer volume of such companies has forced the prices of these liquids down considerably and improved liquidity position in the market. At present, China accounts for around a fourth of the world's petroleum consumption.


Competitiveness and size of market have an impact on the penetration rate and market share. However, market research reports suggest that in the coming years, India may consolidate its position in the top 5. Research reports indicate that the share of E&P segment in India is expected to grow slowly. Over the last five years, India's economy has grown at a moderate pace, resulting in enhanced competition in the oil and gas sector. It is believed that government policies and reforms, globalization, liberalization and privatization policies will boost the domestic market further. The rise of Information Technology and offshore mergers and acquisitions are also expected to accelerate the growth in India's economy.


With the increase in demand and the improvement of logistics and transportation infrastructure, Indian refineries are expected to experience increased productivity. This, in turn, will improve profitability. In India, the country's dependence on imported oil and gas products is largely due to poor market segmentation. Over the last few years, the demand for crude oil products and petroleum gases in the domestic market segmentation has declined, leading to the entry of new players in the segment.


With the growth in the demand for LPG, natural gas and diesel, there has been an increase in the export of crude oil products. These exports help in boosting the cash flows and reducing the cost of operations in the upstream segment in India. The future in the Indian Energy Outlook (ROI) projects a growth in the upstream and downstream industry over the next 10 years. Thereby, we can arrive at a conclusion that the penetration of Indian Refineries into the North American Market will be very high in the coming years.

Daniel Zayas
Daniel Zayas
Mars is a content writer and founder of Hesolite the place for you to get SEO tips, backlinks backlinks. He gained extensive knowledge by doing researches on various technology projects. You will find his SEO-related contributions on top sites online.
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