How Oil Was Made? The first theory suggests that oil is a fossil fuel Some scientists believe in another theory. Twentieth- century Russian scientists proposed the "abiotic" theory.
Where is Oil Found? Saudi Arabia The Canada is the second largest (proven oil reserves) . Other countries like Iraq, Iran, Kuwait and the United Arab Emirates and USA.Other nations with large reservoirs of oil include: Libya Venezuela Nigeria Mexico Indonesia the EU nations Brazil China
OPEC Algeria Libya Angola Nigeria Ecuador Qatar Iran Saudi Arabia Iraq United Arab Emirate Kuwait Venezuela
Types of Oil Very Light Oils or Light DistillatesThis oil type includes: Jet Fuel, Gasoline, Kerosene, Light Virgin Naphtha,Heavy Virgin Naphtha, Petroleum Ether, Petroleum Spirit, and PetroleumNaphtha. Light Oils or Middle DistillatesThis oil type includes: Fuel Oil (grades 1 and 2), Diesel Fuel Oils (grades 1and 2), Domestic Fuel, and Marine Gas Oil - Light Crude falls into thiscategory. Medium Oils - Most Crude Oil falls into this categoryThis type of oil MAY causes long term, severe damage to fish, waterfowl,fur bearing animals and intertidal organisms. About 1/3 of medium oilsevaporate within 24 hours. Heavy Fuel OilsThis category includes heavy crude oil, Fuel Oil No. 3 & 4), Fuel Oil No. 5(Bunker B), Fuel Oil No. 6 ( Bunker C), Marine Intermediate Fuel, andMarine Heavy Fuel.
Three Influencing Factors of International Oil Price The changing 1 supply-demand structure dominates oil price Oil Price 2 3
What is Crude Oil? Crude oil is a naturally-occurring substance found in certain rock formations in the earth. It is a dark, sticky liquid classified as a hydrocarbon. This means, it is a compound containing mainly carbon and hydrogen. Crude oil is highly inflammable and can be burned to create energy. Petroleum= Petra (Rock) + Oleum (Oil)
Crude Oil Production India Thousand Barrels DailyKuwait UAEMexicoCanada China Iran US Saudi…Russia 0 5000 10000 15000 Source: BP Statistical Review of World Energy 2011
India’s Oil Import 11% 34% 18% 5% 10% 22%Iran Saudi ArabiaOther Western HemisphereAfrica Other Middle East Source: Global Trade Atlas
Consumption of Major Petroleum Products 9% 8% 40% 36% 7%LPG Kerosene Diesel Petrol All other products Source: Ministry of Petroleum Basic Statics
Crude Oil PriceSource:- Energy Information Administration and Bureau of Labor Statistics 2012
Who Uses Oil? The U.S. uses 25% of the estimated 80 million barrels of oil produced around the world every day. The country that exports the most oil to America is Canada, with Saudi Arabia second. The European Union (EU) also uses a large percentage of the worlds reserves. China currently ranks as the third-biggest oil consumer on the planet.
Break up of cost calculated by the government.• Basic Price: Rs 28.93• Excise duty: Rs 14.35• Education Tax: Rs 0.43• Dealer commission: Rs 1.05• VAT: Rs 5.5• Crude Oil Custom duty: Rs 1.1• Petrol Custom: Rs 1.54• Transportation Charge: Rs 6.00• Total price: Rs 58.90
India: Macroeconomic impacts of oil price rise No decline in consumption of crude and petroleum products. Increase in trade deficit. No effect on public spending on physical infrastructure and social sectors . Increase in public spending on renewable energy development. Electricity pricing unlikely to be impacted. Natural gas prices increased 12% for the power and fertilizer sectors, and 136% for other industrial consumers. No increase in prices for small-scale industries and transport sectors.
India: Sectoral impacts of oil price rise Petroleum sector Transport sector Fertilizer sector
India: Microeconomic and poverty impacts of oil price rise — community-wide impacts Income patterns Expenditure patterns Impact on major economic activity (agriculture)
India: Microeconomic and poverty impacts of oil price rise — direct impacts on households Changes in energy expenditure Changes in energy consumption Transportation costs
To summarize the studyWhen Oil prices Moves UP :1. Inflation increases2. Govt. spending on subsidy increases3. Foreign currency reserves reduce4. Our export becomes weaker5. GDP is affected negatively6. Share market crumbles7. Investment decreases