2. MBA-B BATCH(2011-2013)
SOP GROUP-10
TEENA KURIAN
SHEFIN J PEREIRA
KAMIA RAJU KASTHOORI
RAHUL CYRIAC MATTAM
PUNNOOSE RAJAN
SREENANDH S
3.
4.
5.
6. TOPICS
Introduction
Current situation
Causes of rising oil prices
Effects on Economy
How affects Common man
Solution
Conclusion
7. INTRODUCTION
Oil Main Energy Source
Found beneath the Earth's 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
10. 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 India's 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.
11. 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
12. 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
13. 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.
14. 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
15. Top Ten Oil Exporting Top Ten Oil Importing
Countries 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)
24. 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
25. Contd….
• Supply cut-off
Growing demand
No spare capacity
Standard of living
Natural calamity
Under recovery of oil companies
26. 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
27. 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
29. 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
31. 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
32. 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.
33. 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.
34. 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.
35. 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.
36. 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
