ONGC is getting ready for a future in which oil prices might settle at around $60 per barrel due to the rapid changes occurring in the global energy market.
The state-run exploration Oil and Natural Gas Corporation (ONGC) is cautiously optimistic about the medium-term forecast for oil prices, despite the volatility of the world’s energy markets. A top ONGC official predicts that over the next two to three years, oil prices would fluctuate between $60 and $65 per barrel due to a delicate balance between growing global demand, changing supply dynamics, and the continuous transition to renewable energy.
“We expect oil prices to be volatile, but we anticipate a steady average range of $60 to $70 per barrel in the short to medium term,” the official said, adding that ONGC is putting itself in a strategic position to stay profitable and competitive in this pricing environment.
Due to targeted operational enhancements and new project ramp-ups, the business has seen a turnaround in the declining trend of its independent crude oil output. To maintain and improve production levels, ONGC is working on a number of development projects on its eastern and western offshore fronts.
The oil company has committed $400 million in capital expenditure for the ONGC-BP reconstruction project (Phase 1) as part of its expansion agenda. The official pointed out that this approach would be crucial to raising recovery rates from older fields and increasing production efficiency.
Furthermore, ONGC has determined that more than 20 strategic projects now under execution have value potential of over ₹4,300 crore. These include integrating cleaner and more sustainable technology into company operations, optimizing processes, and attempting digital transformation.
In light of the rapidly changing global energy scenario, ONGC is getting ready for a time when oil prices may settle at around $60 per barrel. According to the official, “we are recalibrating our operations, investments, and efficiency to prosper in a reduced pricing environment.”