At the India Energy Forum by CERAWeek on Tuesday, oil and gas executives agreed on the continuance of a low oil and gas price regime.
While an energy company such as Oil and Natural Gas Corporation (ONGC) looks to firm up strategies to sustain profits, gas processing company such as GAIL (India) aims to gain with higher domestic consumption and train focus on shorter procurement contracts.
“This is the new normal. We may not see pre-2014 levels of crude oil at $100 per barrel,” said Shashi Shanker, chairman and manging director (CMD), ONGC.
Shanker was speaking at the India Energy Forum’s ‘Technologies to Optimise Costs, Recovery, and Emissions in the Upstream’ session.
“Year 2020 has not been a good year for oil companies. It started with a price war, prices touched all-time lows and then the pandemic struck. This has put oil companies through the wringer,” said Shanker.
He remains hopeful of coping with tech advancements and other initiatives.
Gas distributor GAIL (India), on the other hand, is working towards increasing India’s consumption. “The past one year has been volatile. Natural gas prices have fallen sharply, even before Covid put paid to our plans,” said Manoj Jain, CMD, GAIL (India), at the ‘Growing Share of Gas in India’s Energy Mix: What is realistic?’ session later in the evening.
He added, “We are the largest buyer of US liquified natural gas in India and the price outlook seems to be on a downward trend.”