Crude oil - BLACK GOLD
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Crude oil - BLACK GOLD Presentation Transcript

  • 1. CRUDE OIL $ Black Gold $ Made By : Jaskaran S. Kohli
  • 2.  Crude Oil is a naturally occurring thick , dark brown flammable liquid which is derived from Fossil Fuels.  Crude Oil is also referred as Black Gold as it of immense economic importance.  It is a non renewable resource ,thus its demand > supply leading to high price rise.  An international body called OPEC controls the pricing of oil all throughout the globe.  Oil prices have risen from $18.5 in 1976 to $150 in 2012.
  • 3. WHAT IS CRUDE OIL ?  Petroleum or Crude Oil is a naturally occurring thick , dark brown flammable liquid found in the Upper Strata of the Earth’s Crust.  It is recovered mostly through oil drilling and is then refined into a large number of consumer products, like petrol,kerosene,plastics andpharmaceuticals.  It is a type of Fossil Fuel consisting of a complex mixture of hydrocarbons. Hydrocarbon Crude Oil
  • 4. • Before it can be used crude oil must be refined. • Hydrocarbons can be separated using distillation, which produces different fractions (or types) of oil and gas. Jet fuel Car fuel Road tar Distillation Plant Oil refinery
  • 5. WHY BLACK GOLD?  Petroleum products are extracted from Crude Oil, which is black in colour.  Availability is minimum but demand is more.  Its economic value is immense.  Causes Inflation and affects the pricing of almost everything.
  • 6. # Nation 103bbl/d (2007) 103bbl/d (2008) 103bbl/d (2009) Present Share 1 Saudi Arabia 10,234 10,782 9,760 11.8% 2 Russia 9,876 9,789 9,934 12.0% 3 United States 8,481 8,514 9,141 11.1% 4 Iran 4,043 4,174 4,177 5.1% 5 China 3,901 3,973 3,996 4.8%
  • 7. Nation (1000 bbl/day) (1000 m3/day) population in millions bbl/year per capita United States 19,497.95 3,099.9 314 22.6 China 7,831.00 1,245.0 1345 2.1 Japan 4,784.85 760.7 127 13.7 India 2,962.00 470.9 1198 0.9 Russia 2,916.00 463.6 140 7.6
  • 8. SOARING PRICES
  • 9. FACTORS AFFECTING PRICE RISE  Changes in Supply & Demand.  Global Equity Market.  Movement in Dollar($).  Organization of the Petroleum Exporting Countries (OPEC) controls the price.  Increase in Tax Rate.  Wars , Recessions and Natural Calamities are other important factors.
  • 10.  Supply & Demand determine the price of fuel.  If Demand > Supply , prices will rise and vice-versa.  Global Consumption has grown by 1.2 Million Barrels per day.  Oil is a Non-Renewable resource, hence is limited.
  • 11. ROLE OF  Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of twelve oil-producing countries .  It controls and regulates Global Price of crude oil.  Its main objective is to peruse various ways and measures to stabilize the price of oil in International Markets.
  • 12.  Peak oil is the point in time when the maximum rate of petroleum extraction is reached, after which the rate of production is expected to enter terminal decline. o In 1956, Hubbert predicted that global oil production would peak around the Year 2000 and trigger an Energy Crisis with power blackouts and rising costs of energy and fuel . Era of energy crisis
  • 13. WHEN OIL PRICES RISE :  Rise in Inflation Rates.  Government spending on Subsidy Increases.  GDP is affected negatively.  Foreign Currency reserves reduce.  Prices of almost everything increases, causing extreme hardship towards the common man.  Leads to wars, protests and political instability.
  • 14. ECONOMY  Overall consumption of gasoline is down by 7%.  2.5% decline in USA GDP due to rising oil prices.  Prices hit a shocking $150 per barrel leading to rapid inflation.  A $10-a-barrel increase in the price of oil reduces U.S. GDP growth by 0.5 percentage points.
  • 15. PRICE IN INDIA  Prices of crude oil have risen by more than 33% in the past two months.  Indian Rupee has depreciated from Rs. 44 per dollar in April 2011 to Rs.49 now. o Inflation also went up to 12.27% which was highest for India in 2 decades. o India’s subsidy zoomed to 2.5%of GDP.
  • 16. EFFECT ON INDIAN ECONOMY  Rapid Inflation.  Hike in Interest Rates.  Slowdown in Economic Growth.  Fall in Employment Opportunities.  Reduced amount for infrastructure.
  • 17.  Inflation : went up to 12.27%.  Fuel Subsidy Burden : of Rs. 1,42,203 Crores  Rise in Cost of Imports : have risen by $1.2 Billion.  Widening of Trade Deficit :for 2009-10 was $117.3 Billion.  Estimated that a sustained 10 dollar increase in oil prices lead to a 1.5 per cent reduction in the GDP.
  • 18.  Extinction of whales.  Extraction of Oil leads to land degradation.  Global Warming: petroleum releases carbon dioxide, a greenhouse gas.  Oil Spills: damages land, pollutes water and kills marine animals.  Tar balls: huge blob of oil causing contamination and pollution.
  • 19.  Crude oil and refined fuel spills from tanker ship and damage natural ecosystems.  Can be on land or sea.  Quantity of oil spilled during accidents has ranged from a few hundred tons to several hundred thousand tons.  Land Degradation.  Pollutes sea water.  Kills Marine life.  Illnesses and Diseases.
  • 20. ALTERNATIVES Alternatives to petroleum-based vehicle fuels: Internal Combustion Engines Natural Gas Vehicles Biodiesel Powered Vehicles Hybrid Electric Vehicles Solar Cars Alternatives to burning petroleum: Solar Powers Wind Power Hydro Electricity Nuclear Energy
  • 21. IN A NUTSHELL 2012 1997
  • 22. Jaskar an Singh