An Empirical Analysis of the Relationship Between Crude Oil Imports and Net Sales of ONGC

P Dhanalakshmi; M Gurupandi

doi:10.34293/commerce.v14i1.9968

P Dhanalakshmi Research Scholar, Department of Commerce, Alagappa University, Karaikudi, Tamil Nadu, India https://orcid.org/0009-0005-7802-1332
M Gurupandi Associate Professor, Department of Commerce, Alagappa University, Karaikudi, Tamil Nadu, India https://orcid.org/0000-0002-6250-0110

DOI: https://doi.org/10.34293/commerce.v14i1.9968

Keywords: Crude Oil Imports, Net Sales Revenue, ONGC, Energy Dependency, Energy Security, Oil and Gas Industry, Corporate Financial Performance, India’s Energy Sector

Abstract

Purpose: This study outlines the correlation between net sales revenue and crude oil imports by the Oil and Natural Gas Corporation Limited (ONGC) from 2001 to 2024. Given the critical role that the oil and gas industry plays in Indian energy security, this study attempts to determine the relationship between dependence on imported crude oil and the financial performance of ONGC and to generalise the results of this study on corporate sustainability and national energy policy.
Methodology: The study uses rigorous quantitative methodologies using a corpus of secondary data collected by extracting publicly available financial statements, annual reports, and industry repositories. They are trend analysis, calculation of the Pearson correlation coefficient, and simple linear regression models to question the correlation between crude oil imports and net sales revenue during a given time range.
Results: The empirical evidence shows that there has been a consistently decreasing trend in crude oil imports accompanied by an equivalent increasing trend in net sales revenue of ONGC. The correlation analysis also showed that the two variables had a strong negative correlation. In addition, the results of the regression support the fact that the negative impact of crude oil imports on the net sales revenue of ONGC is statistically significant.
Conclusion: The conclusions made on the basis of this investigation are that although there is a weakened reliance on imported crude oil, ONGC has managed to attain growth in revenues. This tendency implies the existence of increased operational efficiency, sophistication of resources, and enhancement of domestic production capacities. The results shed light on a paradigm shift in energy dependence in India and its implications for corporate financial performance in the energy industry.
Future Research Directions: Future research can expand the analytical model by adding more covariates, such as international oil price shocks, national production indicators, investments in technological capital, and governmental energy policy tools. The understanding of the dynamics of energy dependency and its effects on corporate performance would also be enhanced by comparative studies of various Indian oil companies or wider cross-country research that includes emerging economies.