Operational Strategy Proposal : Oil Industry

OPERATIONAL STRATEGY: PROJECT WRITEUP INDUSTRY: ENERGY SECTOR (OIL INDUSTRY) By Group 8: Mayank Gupta (POC)

Oil provide the India's 1.2 billion people with 30-40% of their daily energy needs. The other 60% percent comes from coal, nuclear and hydroelectric power, and “renewables" like wind, solar and tidal power, and biomass products such as firewood. The Industry operational activities is majorly divided into 2 major components: 1.) Upstream Operations:- It includes exploration and production activities and have following sub-stages  Exploration  Appraisal  Development  Production  Abandonment 2.) Downstream Operations : It includes following sub-activities  Refining  Transportation of crude oil and finished products  Sales, Marketing and Distribution Major firms operating in this Industry in India are listed below: ONGC HPCL MRPL IOCL Reliance Chennai Petroleum Corp. Ltd. BPCL Essar Oil Ltd. Cairn India Ltd.

Some of the Operational Strategic choices to be made by firms operating in Oil Industry are:         Ensuring sustained exploration in existing and unexplored areas within the country Expansion possibilities of refining capacity : Green field Strategy Location of refinery Vertical and Forward Integration Maintaining low operating costs and sustaining production from existing fields Organic vs. Inorganic Growth Diversifying into alternate sources of energy Operational Flexibility to ensure compliance to ever changing environmental norms Tackling challenges posed by deregulation of oil Prices in India

The Aim of this project Case study is analysis some recent trends occurring in this sector with an Indian Perspective. The current challenges facing the energy industry, however, necessitate that the companies integrate sustainability, innovation and management of technology strategies with their core strategies of portfolio management, operational efficiency and financial management. Our main methodologies to be used in this project will...