Lower crude regime to impact upstream companies, dampen capex plans

Firms fear huge impact on top lines, say investments in oil and gas sector will be affected

Though a drop in international crude prices is seen as a positive sign for the Indian economy, both public and private sector upstream companies such as Oil and Natural Gas Corporation (ONGC), Cairn India and Oil India (OIL) may be hit badly on crude realisation by the crash in prices. This may also dampen the investments lined up by these firms.

“These prices are not sustainable for any company and upstream companies are going to struggle. This will take investments away from oil and gas. For every $1 a barrel decline in prices, our top line will also get affected on