Valuation Through Multiples in Oil and Gas Industry

Abstract

India has around eight vital industries, among which the Oil & gas industry plays a crucial role in determining the economy of the other vital industries. This sector is the world’s largest market for growth. IEA reported that it is expected that the essential energy demand would rise to twice the current demand by 2040 with the increasing GDP. India being the world’s 3rd largest oil consumer, has 10420 km of crude oil pipeline. The capacity of these pipelines is approximately around 140 MMT (as of financial year 2022). Assam, Gujarat, and Rajasthan contribute more than 90% towards India’s oil production. The oil and gas industry alone contributes almost 15% towards India’s GDP. The tax from petroleum alone contributes almost 2% of India’s GDP.