2. INTRODUCTION
Oil crisis, a sudden rise in the price of oil that
is often accompanied by decreased supply.
Since oil provides the main source of energy
for advanced industrial economies, an oil
crisis can endanger economic and political
stability throughout the global economy.
3. Imagine a world without oil, the world would come
to a standstill. Factories would stop running.
Airplanes would be grounded. Production would be
stopped
Oil is used in an array of products like plastic toys,
detergents, cosmetics and nylon clothing.
Since oil is so important , the whole world is
affected by what happens to this commodity.
4. EFFECTS OF OIL CRISIS
PRICES OF ALL GOODS AND SERVICES
INCREASES DUE TO INCREASE IN OIL
PRICES
SALE OF AUTOMOBILE SECTOR DECTOR
DECREASES
MORE USE OF PUBLIC TRANSPORT
AVOID VEICHLES FOR SHORT DISTANCES
6. WHERE DOES OIL COME
FROM?
The major producers of Crude Oil
are Gulf countries along with US,
Russia & West Asia.
7. PETROLEUM IN INDIA
India is 80 per cent dependent on imports to
meet its oil needs. Easing of western
sanctions in 2015 has led to the Indian
refiners raising their purchase from
Iran.Kuwait, which was the third largest
supplier in 2013-14 has steadily slipped,
supplying just 6.4 MT in the first seven
months of the current fiscal. It had in 2014-15
supplied 17.9 MT crude, which came down to
9.8 MT in 2016-17, Pradhan said
8.
9. LAST 5 YEAR RELATION OF
VENEZUELA WITH INDIAN OIL
INDUSTRIES
Venezuela is obliged to supply barrels
to China and Russia to pay back
debts, so not too much is left for
others, mainly India,” said Ehsan Ul-
Haq, director of crude oil and refined
products at consultancy Resource
Economist.
10. Indian imports of oil from Venezuela have fallen to their lowest
levels in over half a decade, shipping and industry data
showed, as a severe economic and political crisis hits crude
output in the South American OPEC member.India’s oil
imports from Venezuela averaged around 300,000 barrels per
day (bpd) between November, 2017 and February, 2018, a
drop of about 20 percent from the same period a year earlier
and the lowest such level since 2012, according to data from
shipping sources and industry.The sources declined to be
identified as they were not authorised to speak with
media.Venezuela’s oil production plunged to the lowest in
decades last year, with the country racked by quadruple-digit
inflation, a lack of hard currency and a crippling recession.The
five-year average of Venezuelan crude oil to India is around
440,000 bpd, the shipping and industry data showed.India’s
oil supplies continue to be dominated by Middle East
members from the Organization of Petroleum Exporting
Countries (OPEC), with Iraq and Saudi Arabia prominent.Key
for Venezuela’s drop-off in shipments to India are supply
obligations to other countries which, amid its overall declining
output, leave fewer cargoes available for sale elsewhere.
12. • OPEC- Organization of Petroleum
Exporting Countries
• It was formed in 1960.
• Founding Members- Iraq, Iran, Kuwait,
Saudi Arabia, Venezuela.
• Later 9 other countries joined this cartel
in order to bring more stability in the Oil
Market.
• It coordinates & unifies the Petroleum
policies of its member countries and
ensure the stabilization in the market.
•
16. Current Situation in India
Current petrol and diesel prices are Rs.86 a
litre and Rs.74 a litre, respectively in Mumbai
on June 3 as compared to Rs.66.12 and
Rs.56.81 in May 2016.
Government controlled the prices for 19 days
due to Karnataka elections and thereafter
increased……
Meeting – Union Dhrmendra Pradhan-
17. Union Minister for Oil and Gasarmendra
Pradhan's face as he summoned an emergency
meeting on Thursday, May 31, with ministry
officials and top honchos of India's public sector
oil companies in New Delhi. The meeting which
went on past midnight,offered no
solution.Although various options were discussed
at the meeting- slashing excise rates on fuel,
prodding states to cut taxes, telling oil companies
to share part of the price rise burden and even a
taking a hard look at the policy of dynamic pricing,
introduced by Pradhan in June 2017 where fuel
prices are adjusted daily in tandem with price
changes in the global market- no decision was
taken.
