This document provides an overview of the global oil industry, including production, consumption, key players, and impacts. It discusses that worldwide oil consumption is expected to be around 88 million barrels per day in 2011. It also outlines that OPEC member countries work together to regulate global oil supply and prices. For India, the document notes that around 36% of energy needs are met by oil and gas, with over 70% of oil consumed in India being imported. It also discusses the impact of high oil prices on the Indian economy, such as higher inflation and a growing subsidy burden.

1. OIL INDUSTRY
PRODUCTION & CONSUMPTION
PREPARED BY
NISHANT SINGH ANIL KUMAR
2010MB42 2010MB23
RAHUL SINGH MAYAPATI MISHRA
2010MB20 2010MB56

2. OUTLINE
 INTRODUCTION
 WORLD SCENARIO
 OPEC COUNTRIES
 OIL & INDIA
 IMPACT ON INDIAN ECONOMY
 GOVERNMENT INITIATIVE
 RECENT DEVELOPMENT
 MAJOR PLAYERS
 REFERENCES

3. INTRODUCTION
 UPSTREAM SECTOR:
Deals with the exploration and
production. Termed as first part of oil industry.
 DOWNSTREAM SECTOR:
Is second part, Related with
manufacturing & processing.
 RESEARVE TO PRODUCTION RATIO:
Portion of identified resources from
which natural resources can be economically and legally
extracted from the ground.

4. WORLD SCENARIO
 Crude oil use worldwide will average 86.9 million
barrels a day in 2010
 Expected 88.2 million barrels a day in 2011
(according to IEA monthly report)
 Consumption of China and India expected to grow at a
rate of 3.8 and 2.4 respectively.
 Current price of crude oil is $80.78 pb (as on 18/10/10)

5. WHAT IS OPEC ?
 OPEC stands for the Organization of Petroleum
Exporting Countries.
 OPEC members sell their products to the United
States, Western Europe and Asia.
 By working together, they regulate how much oil is
available for sale and thus the price.

6. MEMBER COUNTRIES
Algeria Libya
Angola Nigeria
Ecuador Qatar
Iran Saudi Arabia
Iraq U.A.E
Kuwait Venezuela

7. OIL & INDIA
 Shri Murli Deora is the union minister of Petroleum
and Natural Gas.
 About 36% primary commercial energy needs met
from oil and gas.
 Over 70% of domestic oil consumption is imported
mainly from middle east.
 Crude Oil production 33.51 MMT in 2008-09.
 Achieved target lowered by 1.8% than that
achieved in 2007-08

8. CONTI…
At present 20 refineries are operating in
country.
Present refining capacity is 177.97 million
metric tonnes per annum.
105.47 MMTPA by public sector unit and
72.50 MMTPA by private sector.

9. TOP WORLD OIL CONSUMERS IN 2008
(THOUSAND BARREL PER DAY)
RANK COUNTRY CONSUMPTION
1 United States 19,498
2 China 7,831
3 Japan 4,785
4 India 2,962
5 Russia 2,916
6 Germany 2,569
7 Brazil 2,485
8 Saudi Arabia 2,376
9 Canada 2,261
10 South Korea 2,175
TABLE-1
Source: international energy association

11. TOP WORLD OIL IMPORTERS IN 2008
(THOUSAND BARREL PER DAY)
RANK COUNTRY IMPORTS
1 United States 12,224
2 Japan 4,903
3 China 3,670
4 Germany 2,325
5 South Korea 2,210
6 India 1,964
7 France 1,897
8 Spain 1,583
9 Italy 1,519
10 Taiwan 950
TABLE-2
Source: international energy association

12. OIL PRODUCTION AND GROWTH
Year Crude Oil Production (MMT) % Growth
2001-02 32.032
2002-03 33.034 3.16
2003-04 33.373 1.00
2004-05 33.981 1.82
2005-06 32.190 -5.27
2006-07 33.998 5.59
2007-08 34.118 0.38
2008-09 33.556 -1.79
TABLE-3
Source: annual report ministry of petroleum & natural gas

13. IMPACT ON ECONOMY
With rise in oil prices, leads to increase in
cost of production.
Burden on consumer.
Lead to inflation, Reduce other demand.
Budget Deficit increase due to rise in
government expenditure.

14. CONTI…
Less money to spend in country for
expediting growth.
Government will borrow money from
capital market.
High interest rates reduce Growth.
Government subsidize fuel to
safeguard poor.
Subsidy creates further imbalances.

15. CONTI…
Transfer of income of country to
exporting country.
Exporting countries start playing more
assertive and demanding role on world
stage.

16. GOVERNMENT INITIATIVE
FDI up to 100% under the automatic route
is permitted in exploration activities of oil.
FDI up to 49% is permitted in petroleum
refining by the public sector undertakings
(PSU).
Introduction of New Exploration Licensing
Policy (NELP) in 1997-98.

17. CONTI…
Aim is to provide a level playing field to
public and private parties, to compete on
equal terms.
Strategic crude oil storage 5 million metric
tons (MMT).
OIL and ONGC also participating in oil
projects in different country for acquisition
of producing properties.

18. RECENT DEVELOPMENT
Indian Oil to invest Rs 1,700 cr. on new
pipelines.
Gujarat State Petroleum Corporation
(GSPC) has inked an agreement with the
Government of Egypt for oil and gas
exploration in the African nation.
IOC, along with the Tamil Nadu
government is planning to invest US$ 2.22
billion to set up a gas storage terminal

19. MAJOR PLAYERS
Name of Oil
PSU
% of GOI holdings
as on 31.3.2009
ONGC 74.14
IOC 78.92
HPCL 51.11
OIL 98.13
BPCL 54.93
BIECCO
LAWRIE
57.37
EIL 90.40
Source: annual report petroleum ministry

20. REFRENCES
 Annual report 2008-09 of Ministry of Petroleum
& Natural Gas.
 Znews.com
 International energy association reports.
 Opec.org