The document provides an overview of the petroleum industry, including its structure and major players. It discusses: - The petroleum industry involves exploration, extraction, refining, transporting and marketing of oil and gas products globally. Its largest products are fuel oil and gasoline. - The industry is divided into upstream (exploration and production), midstream (transportation), and downstream (refining and marketing) sectors. - The largest oil companies globally based on oil production are Saudi Aramco, Gazprom, and the National Iranian Oil Company. - OPEC coordinates petroleum policies of its 12 member countries, who collectively produce around 40% of global oil and 15% of natural gas

2. INTRODUCTION TO PETROLEUM INDUSTRY
 Includes the global processes of
exploration, extraction, refining,
transporting and marketing
petroleum products.
 The largest volume products of the
industry are fuel oil and gasoline
(petrol).
 The world’s energy consumption:
ranges from a low of 32% for
Europe and Asia, to a high of 53%
for the Middle East.

3. INDUSTRY STRUCTURE
The petroleum industry is divided into
3 sectors :
 Upstream
 Downstream
 Midstream

4. BIGGEST OIL COMPANIES (2015)
According to Forbes :
 Saudi Aramco ( 12 Million boepd )
 Gazprom ( 8.3 Million boepd )
 National Iranian Oil Co. ( 6 Million boepd )
 Exxon Mobil ( 4.7 Million boepd )
 Rosneft ( 4.7 Million boepd )
 PetroChina ( 4 Million boepd )
 BP ( 3.7 Million boepd )
 Royal Dutch Shell ( 3.7 Million boepd )
 Petroleos Mexicanos ( 3.6 Million boepd )
 Kuwait Petroleum Corp. ( 3.4 Million boepd
)

5. OPEC

6. INTRODUCTION
 OPEC : Organization of Petroleum Exporting
Countries.
 Founded in 1960 in Baghdad, Iraq.
AIM :
 To coordinate the petroleum policies of its
members
 To provide member states with technical and
economic aid.

7. MEMBERS
 Algeria
 Angola
 Ecuador
 Iran
 Iraq
 Kuwait
 Libya
 Nigeria
 Qatar
 Saudi Arabia
 United Arab Emirates
 Venezuela

8. CURRENT STATUS
 The OPEC Secretariat : Vienna, Austria.
 Member Countries produce about 41
per cent of the world's crude oil and 15
per cent of its natural gas.
 OPEC's oil exports represent about 55
per cent of the oil traded
internationally.
 OPEC proven oil reserves are currently
1,206.00 billion barrels.

9. PETROLEUM INDUSTRY :
INDIA

10. INTRODUCTION
 One of the six core industries in
India.
 3 production segments : Refinery
production, natural gas production &
crude oil production.
 Attracted foreign direct investment
(FDI) worth US$ 6.58 billion
between April 2000 and June 2015.
 Anticipated to be worth US$
139,814.7 million by 2015.

11.  domestic oil output is anticipated to
grow to 1 MBPD by FY16.
 ONGC dominates the upstream
segment, accounting for approximately
60 per cent of the country’s total oil
output (FY13).

12. MAJOR OIL COMPANIES
 Oil & Natural Gas Corporation ( ONGC )
 Reliance Industries Limited ( RIL )
 Indian Oil Corporation Limited ( IOCL )
 Bharat Petroleum Corporation Limited ( BPCL )
 GAIL ( India ) Limited
 Cairn India Limited
 Oil India Limited ( OIL )
 Hindustan Petroleum Corporation Limited (
HPCL )
 Essar Oil Limited
 Petronet LNG Limited

13. REASONS BEHIND PETROLIUM PRICE
FLUCTUATION

14. 1. Petrol price = cost price (procuring +
refining + marketing) + tax (central +
state)
2. Cost price = f(international crude
price)
3. International Crude Price = f(Supply,
Demand, Government policies,
Financial Institutions) Geopolitics).
STEPS TO DETERMINE OIL PRICE
Paid to Refinery
61%
Excise Duty
20%
VAT
17%
Dealer
contribution
2%
Fuel price contribution in India

15. 1.Economic Reasons
Supply and demand imbalances
Black Marketing
Black money
Rapid Growth of Population
Taxation
Deficit Financing
Increase in Money Supply
CAUSES BEHIND OIL PRICE
FLUCTUATION

16. 2.Political Reasons
 Rejection of India’s call by OPEC for
regulating crude prices through a price band.
Unsolved present issue of payment with
Iran, India’s second crude oil supplier.
Absence of reforms to regulate automotive
sector.
Huge tax revenues from import of crude oil.
CAUSES BEHIND OIL PRICE
FLUCTUATION

17. Arab Spring – Impact on Oil Production
Production stack for 5 oil producing
countries affected by the Arab
Spring
Libya, Syria, Yemen, Tunisia and
Sudan
Oil production has fallen by over 2
million barrels per day
Pre Arab Spring, production from
these countries was over 3 million
bpd
This had fallen to 0.955 million bpd
in September 2013

18. Iran is currently sitting on top of the
fourth largest supply of oil on planet
earth.
Iran recently outlined plans for the
rebuilding of its core industries
 it is targeting oil and gas projects
valued at $185 billion by 2020
In the span of just six months, oil
price dropped from $110 per barrel
to less than $48
The Iran Nuclear Deal Impact Oil Prices

19. CURRENT
EFFECT
OF
FUEL
PRICE
STOCK MARKET CRASH

20. FUTURE
CONSEQUENCES

21. Thank you