Oil Industry Overview

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Oil Industry Overview

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Oil Industry Overview

  1. 1. Oil Industry Overview Misha Jain 4 years in HPCL Refinery as Maintenance Engineer
  2. 2. Agenda• Oil Value Chain• Oil Value Chain Economics (US)• Petrol Pricing in India• Petrol Prices across the world• Global Oil Scenario• Top 10 Proven Oil Reserves• World’s Largest Oil & Gas Companies• Indian Oil Scenario• Refinery Process Overview• Nelson Complexity Index• Refinery Products• How a Refinery looks like??
  3. 3. Oil Value Chain UPSTREAM Exploration Production DOWNSTREAMRefining Petrochemicals Distribution
  4. 4. Oil Value Chain Economics (US)• Over 75% of an integrated oil companys net margins are in the upstream.• Crude oil costs contribute nearly 60% to pump prices.• Severance and gasoline taxes cost consumers nearly 26% of pump prices.• Company net margins for refining and marketing are 10% of pump price.
  5. 5. Petrol Pricing in India % of PumpComponents of Pump Price PriceActual Crude Oil E&P Cost 15.57 Rs/litre 23.28E&P Margin 16.98 Rs/litre 25.39Crude Price 32.55 Rs/litre 115 $/barrel 48.67GRM 2.26 Rs/litre 8 $/barrel 3.39Petrol Basic Price 34.81 Rs/litre 52.05Excise Duty (Fixed) 14.35 Rs/litre 21.46Edu Cess (3% of Excise) 0.43 Rs/litre 0.64Dealer commission 1.05 Rs/litre 1.57VAT (15% of Basic+Excise) 7.60 Rs/litre 11.36Crude Oil Custom duty 1.10 Rs/litre 1.64Petrol Custom 1.54 Rs/litre 2.30Transportation Charge 6.00 Rs/litre 8.97Pump Price 66.88 Rs/litre 100.00Assumptions:1 barrel = 158.99 litresINR USD Rate 45.00E&P Margin is 75% of Full Margins of integrated company
  6. 6. Crude Price• Price drivers are: – Demand Supply gap Demand driven Speculation – Speculation driven
  7. 7. GRM• Gross Refining Margin = Selling Price of the basket of products – Cost of Crude (per barrel)
  8. 8. Petrol Prices across the world
  9. 9. Global Oil Scenario (in (in (in (in MMT) Prodn Capacity as a % (in MMTPA) Plant MMTPA) MMTPA) MMTPA) % of Oil Proven Oil Oil Refining of Domestic Crude reserv Efficency Consumpti Reserves Prodn capacity Production Throughput es onWorld 171000 3929 2.30 4414 89.01 3744 84.82 3928OPEC 130000 1758 1.35India 775 34 4.39 180 18.89 160 88.89 130 Source: Basic Statistics of Indian Petroleum & Natural Gas 2008-09
  10. 10. Top 10 Proven Oil Reserves Source: Wikipedia
  11. 11. Indian Oil Scenario Upstream Downstream Oil Production Refining capacity (in MMTPA) (in MMTPA) World 3929 4414 India 33.5 180 ONGC (+MRPL) 25.363 9.69 OIL 3.46 0 Joint Ventures 4.674 0 RIL 0 62 ESSAR 0 10.5 IOCL (+CPCL, BRPL) 0 60.2 BPCL (+NRL, KRL) 0 22.5 HPCL 0 13Source: Basic Statistics of Indian Petroleum & Natural Gas 2008-09
  12. 12. Refinery Process Overview
  13. 13. Gasoline/Petrol/MS Diesel Kerosene ATF Boilers Residual FuelCrude Oil Tankers Lubricants Asphalt / Tar Petroleum Coke Electrodes Benzene, Toulene, X Plastic, Chem, Phar ylene ma
  14. 14. Nelson Complexity Index• A measure of the secondary conversion capacity of a refinery relative to the primary distillation capacity.

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