Oil presentation

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Oil presentation

  1. 1. OIL INDUSTRY PRODUCTION & CONSUMPTION PREPARED BY NISHANT SINGH ANIL KUMAR 2010MB42 2010MB23 RAHUL SINGH MAYAPATI MISHRA 2010MB20 2010MB56
  2. 2. OUTLINE  INTRODUCTION  WORLD SCENARIO  OPEC COUNTRIES  OIL & INDIA  IMPACT ON INDIAN ECONOMY  GOVERNMENT INITIATIVE  RECENT DEVELOPMENT  MAJOR PLAYERS  REFERENCES
  3. 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. 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. 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. 6. MEMBER COUNTRIES Algeria Libya Angola Nigeria Ecuador Qatar Iran Saudi Arabia Iraq U.A.E Kuwait Venezuela
  7. 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. 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. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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.
  13. 13. 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.
  14. 14. CONTI… Transfer of income of country to exporting country. Exporting countries start playing more assertive and demanding role on world stage.
  15. 15. 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.
  16. 16. 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.
  17. 17. 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
  18. 18. 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
  19. 19. REFRENCES  Annual report 2008-09 of Ministry of Petroleum & Natural Gas.  Znews.com  International energy association reports.  Opec.org

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