The Oil and Gas industry comes under Energy group. It’s a commodity type industry.

Industry Strengths

Hugh refinery capacities in India and now India is an exporter of petroleum products
No substitute and customers have to pay the mandated prices
Huge and growing demand for crude and gas from industrial sector where it is used for power generation
Hugh and growing demand for gas like LPG and fuel like kerosene from domestic sector

Industry Weakness

Raw materials, crude oil and gas are largely imported and subjected to fluctuating prices
Crude oil supply is controlled by OPEC which influences the price
High level of government involvement
Heavily dependent on subsidies from government
Capital intensive, long gestation periods and high risk
Impacted negatively by weak rupee

Growth Drivers

Global economic growth which leads to increasing demand for crude oil and gas
Government proactive policies aimed towards India’s energy security
Government incentives to promote the sector especially to foreign and Indian private players.
High demand from aviation, power generation, fertilizer and road transportation sector
Growing industrial and domestic consumption

ONGC dominates India’s oil & gas production with more than two-third share of the country’s production of oil and oil equivalent gas. It contributes ~78% and ~73% to total oil and gas production, respectively, in India. The Company is engaged in the exploration, development and production of crude oil and natural gas.

Segment and Products

The Company's segments include

1.Exploration & Production (E&P), and
2.Refining.

The Company's geographical segments include operations in two categories:

1.In India, which includes Onshore and Offshore, and
2.Outside India.

The Company's business spread include various areas, such as oil field services, transportation of the oil and natural gas, and production of value-added products, such as Liquefied Petroleum Gas (LPG), Naphtha, Refining, Petrochemicals, Power, unconventional and alternate sources of energy.

The Company's subsidiaries include ONGC Videsh Limited (OVL), Mangalore Refinery and Petrochemicals Limited (MRPL) and ONGC Mangalore Petrochemicals Limited. The Company's oil and gas reserves are located internationally at Russia, Colombia, Vietnam, Brazil and Venezuela.