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The oil and gas industry is closely monitoring the upcoming winter session of Parliament, starting November 25, as it anticipates the approval of the Oilfields (Regulation and Development) Amendment Bill, 2024. This legislation aims to replace the outdated 1948 Act, fostering investment and policy stability in India's exploration sector.Major international companies, including Chevron and ExxonMobil, are poised to collaborate with Oil and Natural Gas Corporation (ONGC) but are awaiting clarity on the new regulations. ONGC's director of exploration, Sushma Rawat, highlighted ongoing discussions with these firms regarding both exploration and unmonetized discoveries.
Brent crude oil prices are projected to remain around $75 per barrel for the next few months due to weak demand from China and increased supply from the US and other producing nations. Experts anticipate a bearish trend, with prices potentially dropping further as OPEC+ countries ramp up production. As of November 15, Brent was trading at approximately $71 per barrel, significantly lower than the $90 peak in April amid geopolitical tensions.
Oil Minister Hardeep Singh Puri announced that major oil-consuming countries are unlikely to experience fuel shortages as producers like the US, Brazil, and Canada increase crude supply. Brazil is set to add 300,000 to 400,000 barrels per day, while the US may contribute an additional million barrels. Puri emphasized the importance of stable crude oil prices for India's economic decisions, given its reliance on imports for over 85% of its oil needs.
Artificial Intelligence (AI) is poised to transform the energy sector, according to Hardeep Singh Puri, Union Minister of Petroleum and Natural Gas. Speaking at KPMG’s ENRich 2024, he highlighted AI's potential to enhance operational efficiency and support the vision of a “Viksit Bharat” by 2047, with an estimated contribution of Rs 33.8 lakh crore to India's economy by 2030. Indian Public Sector Undertakings are already leveraging AI and Machine Learning to boost safety and operational efficiencies.
Petroleum Minister Hardeep Singh Puri stated there is no global oil shortage and prices are expected to decline soon, despite recent increases influenced by geopolitical tensions and production cuts. He emphasized stable prices over the last three years and highlighted India's expanded oil procurement from 39 suppliers to enhance energy security.
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