As the country decides to go low carbon and starts looking to reduce oil consumption in transport, industry, and materials, what about state-owned oil refining and marketing companies such as Indian Oil Corp. [IOC], Bharat Petroleum Corp. Ltd. [BPCL], and Hindustan Petroleum Corp. Ltd. [HPCL], set up to source and refine crude to meet India’s growing energy demands?
Oil-marketing companies are gearing up for a transition to non-fossil fuels by transforming into green energy companies selling biofuels and high-value chemicals.
While the future is most likely electric, and almost certainly not fossil fuels, that future is some time away. Predictions are that even by 2050, almost 50% of all vehicles sold worldwide could be petrol/diesel based. In countries like India, the change could happen much slower.
The oil behemoths hence will need to factor in the above and strategize for different timelines - perhaps one until 2030, another for 2030-2050, one for 2050-2070, and the final one for the post-2070 period when they perhaps will have little or none of their core business left.
