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Oil & Gas - GE Operating Segments

GE Operating Segments

GE is a world leader in advanced technology equipment and services for a wide array of activities related to the oil and gas sector. Therefore, GE Oil & Gas is already deeply involved in all three segments of India’s oil and gas sector. However, given each of these segments’ potential for growth, the company continues to search for opportunities where its cutting edge technological solutions can unlock value.

Upstream

India’s upstream segment is perhaps most exemplary of the overall sector’s enormous potential. Although the country has proven reserves of 206 billion barrels of oil, only 67 billion barrels are online. In addition, less than 25% of India’s sedimentary basins are explored, with subsea areas particularly underexplored. In fact, only one of the country’s 83 deep-water blocks has been developed. The enormous backlog in a wide variety of upstream activities plays to GE’s strengths. The company is not only able to provide a large number of advanced drilling solutions, but also has a myriad of offshore and subsea technologies that can be deployed in India’s deepwater blocks, including:

- Subsea trees

- Controls, manifolds, umbilicals,

- Specialty connectors and pipes

- Subsea Well Head Equipment

- Flexible risers

In addition, it has a variety of solutions designed specifically to improve well performance, like water injection, and gas-specific solutions like gas reinjection and gas lift. GE provides its upstream services through a number of well respected brands, including VG, Hydril, Woodgroup, and Wellstream.

Midstream

In the midstream segment India suffers from a comparatively low density of pipelines. While countries like the United States, United Kingdom, and China sport pipeline densities of 50 kilometers per 1000 square miles, India’s pipeline density is only 3 kilometers per 1000 square miles. Clearly India’s developing economy will require an increase in both pipeline length and capacity, and GE Oil & Gas has already demonstrated expertise in pipeline compression, integrity solutions, sensor-based measurement, inspection, asset condition monitoring, and data management experience in the Indian context.

Additionally, the company’s gas turbine product line is among the most extensive in the industry, and provides clients in the midstream segment support for a wide variety of applications. Also, given India’s growing gas reserves, the company’s strong track record with gas storage and natural gas liquefaction (LNG) could prove to be a boon for India’s long distance gas transportation plans.

Downstream

India’s increasing consumption of fertilizer, petroleum, and petrochemicals means the domestic downstream segment is set to expand as well. Already, growing demand for fertilizer is encouraging companies to reopen mothballed plants, with GE providing the necessary support to modernize fertilizer production. Analysts also predict refining capacity will increase 5 percent over the next decade. Essar Oil’s recent expansion of its refinery in Gujarat and Reliance Industries cracker project in the same state are not only exemplary of downstream segment expansion, but also relied heavily on know-how from GE Oil & Gas. Perhaps most importantly, with India’s energy consumption continuing to grow at a steady clip, GE’s ability to provide highly efficient power generation will be much sought after over the next ten years. The company’s steam turbines, heavy duty gas turbines, reactors, and steam condensers will likely play a major role as India ramps up its domestic energy generation.