CRUDE OIL AND GAS INDUSTRY

Why crude oil and Gas industry?

Economic Significance:
Central to India's energy sector; third-largest crude oil consumer.
Significant GDP contribution.
India imports ~80% of its crude needs; vulnerable to global price fluctuations.
Energy Security & Policy:
Priority for India due to increasing energy demand.
Key policies: HELP and OALP for boosting domestic production.
Market Dynamics:
Shifting preference from coal to natural gas in India.
Government promoting city gas networks, pipelines, and LNG terminals.
Environmental & Societal Impacts:
India's Paris Agreement commitments necessitate a shift from fossil fuels.
Transition to renewable energy technologies underway.
Investment Aspects:
Significant FDI inflows in the oil and gas sector.
Challenges include regulations, pricing, and geopolitical risks.

CAGR Calculation
+------------------+-----------------+-----------------+-----------------+-----------------+-----------------
+-----------------+
| Company Name | L - 4 Sales | L - 3 Sales | L - 2 Sales | L - 1 Sales | L Sales | 5-
Year CAGR |
+------------------+-----------------+-----------------+-----------------+-----------------+-----------------
+-----------------+
| Assam Company | 162.39 | 179.29 | 209.32 | 224.42 | 290.84 |-
|
| G A I L (India) | 75126.76 | 71885.63 | 56737.79 | 91645.72 | 144301.61 |-
|
| Govind Poy | 7.37 | 8.01 | 7.44 | 6.38 | 9.36 |- |
| Gujarat State | 10728.13 | 14370.64 | 15234.8 | 13583.09 | 24367.29 |-
|
| Hindustan Oil | 50.24 | 239.04 | 182.15 | 100.64 | 133.02 |- |
CRUDE OIL AND GAS INDUSTRY
| Oil India | 10656.47 | 13734.96 | 12128.52 | 8618.38 | 14542.81 |-
|
| Omkar Realtors | 727.53 | 353.14 | 164.97 | 390.74 | 67.4 |- |
| Shell India | 8596.94 | 10556.05 | 11726.93 | 12033.89 | 15584.49 |-
|
| Vedanta | 38644 | 35858 | 37440 | 63277 | 68080 |- |
+------------------+-----------------+-----------------+-----------------+-----------------+-----------------
+-----------------+
| Total | 136699.83 |- |- | 186490.54 | 242458.29 | 12.2% |
+------------------+-----------------+-----------------+-----------------+-----------------+-----------------
+-----------------

verage Market Capitalization over 5 years:

Average Market Cap=Total Market Cap for L-4+Total Market Cap for L-3+Total Market Cap for L-
2+Total Market Cap for L-1+Total Market Cap for L5Average Market Cap=5Total Market Cap for L-
4+Total Market Cap for L-3+Total Market Cap for L-2+Total Market Cap for L-1+Total Market Cap
for L
3. Standard Deviation of Total Market Capitalization over 5 years:
Standard Deviation=∑(Total Market Cap for each year−Average Market Cap)25Standard Deviation=
5∑(Total Market Cap for each year−Average Market Cap)2
Using the provided data:
Total Market Cap for L-4=0.01+1.08+0.92+0.86+1.63=4.5Total Market Cap for L-
4=0.01+1.08+0.92+0.86+1.63=4.5 Total Market Cap for L-
3=0.01+1.08+0.92+0.86+1.65=4.52Total Market Cap for L-3=0.01+1.08+0.92+0.86+1.65=4.52
Total Market Cap for L-2=0.01+1.08+0.9+0.86+1.65=4.5Total Market Cap for L-
2=0.01+1.08+0.9+0.86+1.65=4.5 Total Market Cap for L-
1=0.02+1.08+0.9+0.87+1.64=4.51Total Market Cap for L-1=0.02+1.08+0.9+0.87+1.64=4.51
Total Market Cap for L=0.02+1.07+0.9+0.87+1.64=4.5Total Market Cap for L=0.02+1.07+0.9+0.87+
1.64=4.5
Average Market Cap=4.5+4.52+4.5+4.51+4.55=4.506Average Market Cap=54.5+4.52+4.5+4.51+4.5
=4.506
Standard Deviation=(4.5−4.506)2+(4.52−4.506)2+(4.5−4.506)2+(4.51−4.506)2+(4.5−4.506)25=0.00
8Standard Deviation=5(4.5−4.506)2+(4.52−4.506)2+(4.5−4.506)2+(4.51−4.506)2+(4.5−4.506)2
=0.008
Interpretation:
 The average market capitalization for the industry over the 5-year period is 4.506.
 The standard deviation is 0.008, which is very low. This indicates that the market
capitalization values for the entire industry are very close to the average, suggesting a high
level of stability.
CRUDE OIL AND GAS INDUSTRY
In conclusion, the industry has shown remarkable stability in market capitalization over the 5-year
period. The low standard deviation indicates little variability in the industry's overall valuation,
reflecting consistent investor confidence and positive expectations about its future prospects.

. Total Liabilities for Each Year:

Using the provided data, we'll sum up the total liabilities values for all companies for each year:
Total Liabilities for L-4=∑Liabilities values for L-4Total Liabilities for L-4=∑Liabilities values for L
-4 Total Liabilities for L-3=∑Liabilities values for L-3Total Liabilities for L-
3=∑Liabilities values for L-3 Total Liabilities for L-2=∑Liabilities values for L-
2Total Liabilities for L-2=∑Liabilities values for L-2 Total Liabilities for L-
1=∑Liabilities values for L-1Total Liabilities for L-1=∑Liabilities values for L-1
Total Liabilities for L=∑Liabilities values for LTotal Liabilities for L=∑Liabilities values for L
Using the provided data:
Total Liabilities for L-
4=1486.64+272.28+69214.45+6.61+11719.39+534.23+47289.34+6714.49+6218.87+159779=249146
.3Total Liabilities for L-
4=1486.64+272.28+69214.45+6.61+11719.39+534.23+47289.34+6714.49+6218.87+159779=249146
.3 Total Liabilities for L-
3=1091.68+273.62+72719.29+8.13+684.61+51958.72+7797.44+8060.76+145382=236976.25Total L
iabilities for L-
3=1091.68+273.62+72719.29+8.13+684.61+51958.72+7797.44+8060.76+145382=236976.25
Total Liabilities for L-
2=985.25+169.04+78097.35+7.69+901.44+45827.49+7349.25+10126.28+143473=242936.79Total L
iabilities for L-
2=985.25+169.04+78097.35+7.69+901.44+45827.49+7349.25+10126.28+143473=242936.79
Total Liabilities for L-
1=972+184.39+92244.47+8.14+1037.55+53247.7+7000.03+12306.5+155443=272443.78Total Liabil
ities for L-1=972+184.39+92244.47+8.14+1037.55+53247.7+7000.03+12306.5+155443=272443.78
Total Liabilities for L=1001.07+266.98+100066.49+8.08+1277.63+53650.17+6308.32+13847.07+16
6287=288413.81Total Liabilities for L=1001.07+266.98+100066.49+8.08+1277.63+53650.17+6308.
32+13847.07+166287=288413.81
2. Average Liabilities over 5 years:
Average Liabilities=Total Liabilities for L-4+Total Liabilities for L-3+Total Liabilities for L-2+Total
Liabilities for L-1+Total Liabilities for L5Average Liabilities=5Total Liabilities for L-4+Total Liabili
ties for L-3+Total Liabilities for L-2+Total Liabilities for L-1+Total Liabilities for L
Average Liabilities=249146.3+236976.25+242936.79+272443.78+288413.815=257983.386Average
Liabilities=5249146.3+236976.25+242936.79+272443.78+288413.81=257983.386
3. Compound Annual Growth Rate (CAGR) of Liabilities over 5 years:
CAGR=(Total Liabilities for LTotal Liabilities for L-4)15−1CAGR=(Total Liabilities for L-4Total Li
abilities for L)51−1
CAGR=(288413.81249146.3)15−1=2.97%CAGR=(249146.3288413.81)51−1=2.97%
Interpretation:
CRUDE OIL AND GAS INDUSTRY
 The average liabilities for the industry over the 5-year period is approximately 257,983.39
crores.
 The Compound Annual Growth Rate (CAGR) of liabilities over the 5-year period is 2.97%.
This indicates that the industry's liabilities have been growing at an average rate of 2.97%
annually over the past 5 years.
In conclusion, the industry has seen a moderate increase in its liabilities over the 5-year period, with
an average annual growth rate of 2.97%. This suggests that while the industry has been taking on
more debt or obligations, the rate of increase is relatively moderate. It's essential for industry
stakeholders to monitor this growth and ensure that it aligns with the industry's growth in assets and
revenues to maintain a healthy financial position.