MBA-B BATCH(2011-2013) SOP GROUP-10 TEENA KURIAN SHEFIN J PEREIRA KAMIA RAJU KASTHOORI RAHUL CYRIAC MATTAM PUNNOOSE RAJAN SREENANDH S
TOPICS Introduction Current situation Causes of rising oil prices Effects on Economy How affects Common man Solution Conclusion
INTRODUCTION Oil Main Energy Source Found beneath the Earths surface Petroleum is recovered mostly through oil drilling It is refined and separated Petroleum is used in manufacturing a wide variety of material Non Renewable
Current Oil Situation India as a globally significant oil consumer In 2008, India was the world‟s fifth largest consumer of crude oil and petroleum products India is forecast to become the world‟s fourth largest oil consumer by 2025 The recent fuel price rise will add to Indias inflation worries Oil price crossed $30 in 2003 and reached $60 in August 2005. Oil price reached a historic high of $147.30 in July, 2008 amidst global economic recession.
Government given power to oil companies to determining the price After June-2010 11 times price hike 44 to 70 Last hike was on sep-15 Crude oil price in international market-109 The world population is expected to grow from 6.6 billion today to 6.9 billion in 2011. Oil companies claiming that they are facing losses
Contd… Projected oil demand for 2011 is 31.57 billion barrels On a single day, say 1 Nov 2006, the demand would be 86.5 million bpd (barrels per day). On an average, the world consumes 4.58 barrels per capita, every year. The current oil demand is 82.8 million bpd
CONTD…… Tax cuts Lead to Fiscal Deficit Goldman Sachs increased its inflation forecast for 2011-12 to 8.6 percent from 8.1 percent previously after the fuel price rise Credit Suisse said the the fuel price rise was in line with its expectations and will add 0.6-0.7 percentage points to the wholesale price index oil price determination is no longer solely dependant on the OPEC countries.
Petrol Prices across the World Saudi Arabia 8.53 USA 39.64 Kuwait 9.45 Bulgaria 57.29 Afghanistan 12.37 Canada 53.01 Nigeria 16.63 Poland 62.48 India 70 Spain 64.25 Pakistan 38.78 France 74.84 China 37.31
Top Ten Oil Exporting Top Ten Oil ImportingCountries Countries * Saudi Arabia (8.73 * United States (11.8 million barrels per day) million barrels per * Russia (6.67) day) * Norway (2.91) * Japan (5.3) * Iran (2.55) * China (2.9) * Venezuela (2.36) * Germany (2.5) * United Arab Emirates * South Korea (2.1) (2.33) * France (2.0) * Kuwait (2.20) * Italy (1.7) * Nigeria (2.19) * Spain (1.6) * Mexico (1.80) * India (1.5) * Algeria (1.68) * Taiwan (1.0)
Causes of Rise in Oil Price Crude oil is a Non-renewable resource Depreciating rupee that have increased the cost of crude imports. Oil spills War and Political causes Investors demand Investment slowdown
Contd….• Supply cut-off Growing demand No spare capacity Standard of living Natural calamity Under recovery of oil companies
Effects On Economy High Oil Price Lead to Inflation Business will badly affect Tourism will badly affect Aviation Turban fuel [ATF] price hike will badly affect aviation industry as well people depending on Air Traffic
Export and import become costly Depreciating the value of money GDP will come down if oil price increase It will affect current account deficit Affect stock market
The high price of LPG,Kerosene is a problem People using petrol, diesel vehicle will have problem Family budget of salaried will have change Small scale business will have problem Bus charge hike will create problem Common goods price will increase
Solutions 1.Use of more Renewable Energy .Encourage use of renewable resources rather than natural resources which are nonrenewable. . Develop bio fuel from plants like Jetropha. . Discovery of potential substitutes for oil. 2.More Oil Exploration and Oil Refineries. .Establishment of oil refineries at potential places in the country. .Exploration of new source of oil within the country ,in order to reduce the import of crude oil. .Thus we can be self reliant in fixing the price of the oil
3.Reduce the transportation cost of oil. .Oil is not uniformly distributed around the globe. .Huge amount of oil is lost during its transportation .To avoid this cheap and safe methods should be adopted . eg. Pipeline.• 4.Use Public Transport System and reduce the number of vehicles. .Efficient public transport system. .Instead of using one car for each use of one car by four or five person should be encouraged.
5.Public Awareness .Researches for finding alternatives for oil cannot be successful without the support of public. .Public should be made aware about the decreasing oil resource and natural resources .People should be educated about the efficient usage of fuel and the importance of the oil conservation. . Some methods to create awareness among people is through social networking and advertisement. .Government had made many rules and regulations ,but people break those .Hence people should be responsible and take steps to reduce the hike of oil prices.
6.Government Measures. .Pass laws to check the number of vehicles owned by a person. .Government should improve the standard of the public transport system. .Oil should be avoided from the stock market. So that hoarding of oil can be eliminated. .Tax imposed by both central and state government should be reduced which will decrease the oil price . Government should have proper control over the oil companies ,in fixing the price.
7. Fuel Efficient Methods. . Vehicle Engines should be made more fuel efficient. . Switch off the vehicles in red signal. .Engines should be switched off when not in use.
Conclusion Oil is a finite resource and it’s getting harder and harder to find it.” We have to Preserve it for future generations We have to use this energy source properly Over Exploration should be avoided We can’t afford the high price of oil Responsibility of every person to preserve oil Efficient use of oil for Economic prosperous