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    Oil presentation Oil presentation Presentation Transcript

    • OIL INDUSTRY PRODUCTION & CONSUMPTION PREPARED BY NISHANT SINGH ANIL KUMAR 2010MB42 2010MB23 RAHUL SINGH MAYAPATI MISHRA 2010MB20 2010MB56
    • OUTLINE  INTRODUCTION  WORLD SCENARIO  OPEC COUNTRIES  OIL & INDIA  IMPACT ON INDIAN ECONOMY  GOVERNMENT INITIATIVE  RECENT DEVELOPMENT  MAJOR PLAYERS  REFERENCES
    • INTRODUCTION  UPSTREAM SECTOR: Deals with the exploration and production. Termed as first part of oil industry.  DOWNSTREAM SECTOR: Is second part, Related with manufacturing & processing.  RESEARVE TO PRODUCTION RATIO: Portion of identified resources from which natural resources can be economically and legally extracted from the ground.
    • WORLD SCENARIO  Crude oil use worldwide will average 86.9 million barrels a day in 2010  Expected 88.2 million barrels a day in 2011 (according to IEA monthly report)  Consumption of China and India expected to grow at a rate of 3.8 and 2.4 respectively.  Current price of crude oil is $80.78 pb (as on 18/10/10)
    • WHAT IS OPEC ?  OPEC stands for the Organization of Petroleum Exporting Countries.  OPEC members sell their products to the United States, Western Europe and Asia.  By working together, they regulate how much oil is available for sale and thus the price.
    • MEMBER COUNTRIES Algeria Libya Angola Nigeria Ecuador Qatar Iran Saudi Arabia Iraq U.A.E Kuwait Venezuela
    • OIL & INDIA  Shri Murli Deora is the union minister of Petroleum and Natural Gas.  About 36% primary commercial energy needs met from oil and gas.  Over 70% of domestic oil consumption is imported mainly from middle east.  Crude Oil production 33.51 MMT in 2008-09.  Achieved target lowered by 1.8% than that achieved in 2007-08
    • CONTI… At present 20 refineries are operating in country. Present refining capacity is 177.97 million metric tonnes per annum. 105.47 MMTPA by public sector unit and 72.50 MMTPA by private sector.
    • TOP WORLD OIL CONSUMERS IN 2008 (THOUSAND BARREL PER DAY) RANK COUNTRY CONSUMPTION 1 United States 19,498 2 China 7,831 3 Japan 4,785 4 India 2,962 5 Russia 2,916 6 Germany 2,569 7 Brazil 2,485 8 Saudi Arabia 2,376 9 Canada 2,261 10 South Korea 2,175 TABLE-1 Source: international energy association
    • TOP WORLD OIL IMPORTERS IN 2008 (THOUSAND BARREL PER DAY) RANK COUNTRY IMPORTS 1 United States 12,224 2 Japan 4,903 3 China 3,670 4 Germany 2,325 5 South Korea 2,210 6 India 1,964 7 France 1,897 8 Spain 1,583 9 Italy 1,519 10 Taiwan 950 TABLE-2 Source: international energy association
    • OIL PRODUCTION AND GROWTH Year Crude Oil Production (MMT) % Growth 2001-02 32.032 2002-03 33.034 3.16 2003-04 33.373 1.00 2004-05 33.981 1.82 2005-06 32.190 -5.27 2006-07 33.998 5.59 2007-08 34.118 0.38 2008-09 33.556 -1.79 TABLE-3 Source: annual report ministry of petroleum & natural gas
    • IMPACT ON ECONOMY With rise in oil prices, leads to increase in cost of production. Burden on consumer. Lead to inflation, Reduce other demand. Budget Deficit increase due to rise in government expenditure.
    • CONTI… Less money to spend in country for expediting growth. Government will borrow money from capital market. High interest rates reduce Growth. Government subsidize fuel to safeguard poor. Subsidy creates further imbalances.
    • CONTI… Transfer of income of country to exporting country. Exporting countries start playing more assertive and demanding role on world stage.
    • GOVERNMENT INITIATIVE FDI up to 100% under the automatic route is permitted in exploration activities of oil. FDI up to 49% is permitted in petroleum refining by the public sector undertakings (PSU). Introduction of New Exploration Licensing Policy (NELP) in 1997-98.
    • CONTI… Aim is to provide a level playing field to public and private parties, to compete on equal terms. Strategic crude oil storage 5 million metric tons (MMT). OIL and ONGC also participating in oil projects in different country for acquisition of producing properties.
    • RECENT DEVELOPMENT Indian Oil to invest Rs 1,700 cr. on new pipelines. Gujarat State Petroleum Corporation (GSPC) has inked an agreement with the Government of Egypt for oil and gas exploration in the African nation. IOC, along with the Tamil Nadu government is planning to invest US$ 2.22 billion to set up a gas storage terminal
    • MAJOR PLAYERS Name of Oil PSU % of GOI holdings as on 31.3.2009 ONGC 74.14 IOC 78.92 HPCL 51.11 OIL 98.13 BPCL 54.93 BIECCO LAWRIE 57.37 EIL 90.40 Source: annual report petroleum ministry
    • REFRENCES  Annual report 2008-09 of Ministry of Petroleum & Natural Gas.  Znews.com  International energy association reports.  Opec.org