Daily Archives: March 6, 2015

Underrecovery in the oil sector explained

You must have come across the term underrecovery (UR), while reading newspaper articles related to the oil sector. Most people erroneously think that UR amounts to loss. But this is not true. Before we try to understand what exactly UR is, lets get few related terms clear. Upstream Company (UC) These are the companies which extract crude oil and supply it to the Oil Marketing Companies (OMCs). An eg. of upstream company would be ONGC. Oil Marketing Companies ( OMCs) They buy the crude oil… Continue Reading »