The Union petroleum ministry made a presentation on what the future holds for the oil industry to the group of ministers and think-tanks, set up by the Prime Minister earlier this year. The group is headed by finance minister Yashwant Sinha. The seven-member group includes the Union ministers for petroleum and natural gas, external affairs and the deputy chairman of the Planning Commission.

The group is expected to identify short-term and long-term measures for oil exploration, production and transportation, for making the best use of domestic resources. It is expected to formulate a credible plan for restructuring national oil companies, which includes disinvestment. The group will also create a time-bound framework for price and tariff reforms in petroleum and natural gas. It willidentify steps and policies for rapid development of refining and marketing segments of the oil industry.

The special group was set up following an announcement by the Prime Minister at Petrotech '99 earlier this year. The group was set up to create a specific framework for the vision that should guide policies on the petroleum industry in the years ahead.

The policy becomes necessary, not only in the light of the growing demand for new energy sources, but also because the hydrocarbon sector is now in the throes of a major metamorphosis. Beginning 2002, the Centre is scheduled to lift pricing and distribution controls on oil and gas.

The petroleum ministry had set up a working group, comprising senior bureaucrats and national oil company chiefs last month to assist the group of ministers in preparing the hydrocarbon vision. The working group prepared a comprehensive study on the demand, supply and investment requirements for the petroleum industry in the coming century.

The working group was beingassisted by sub-groups on petroleum industry infrastructure, refining, oil exploration, marketing, to name a few. The special group on Tuesday heard industry assessments of the total petroleum sector in the coming 27 years.

The oil industry study not only covered upstream and downstream projections, but on infrastructure building and changing marketing norms and strategems in the coming decades, as well.

The group of ministers and think-tanks will also formulate a prospective plan for developing non-conventional energy alternatives, like importing natural gas and developing coal bed methane. It will also assess infrastructure requirements of the oil and gas industry, like the need for more ports, shipping tonnage, railways, product pipelines and tankage. It will frame policies to upgrade the infrastructure.

The special group will also evolve a strategy for the manner in which the domestic industry will integrate with the world, for trading and transporting hydrocarbons for instance. To build thisvision, the group is expected to interact with the corporate sector at home, through key chambers of commerce and industry.

The meeting on Tuesday was the first of many that will culminate in the mega policy for the key source of energy, hydrocarbons.