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A BRIEF DISCUSSION ON ITS RESERVES,PRODUCTION,

CONSUMPTION, SUPPLY ,DEMAND&OIL PRICES


By,

krishna

It is a fossil fuel, it is formed when large quantities of dead organisms,


usually zooplankton and Algae, are buried underneath Sedimentary rock
and undergo intense heat and pressure.
Hydrocarbons contain mostly two elements Hydrogen, Carbon
Uses of Crude oil is by separating the Hydrocarbons into different stages
by Fractional Distillation Analysis.
Measures in Barrels.

By 347 AD, oil was produced from bamboo-drilled wells in China.

Titusville, Pennsylvania, U.S.A, is popularly considered the first modern


well - 1859
Romania is the first country in the world to have its crude oil output
officially recorded in international statistics, namely 275 tonnes.
In India, Assam Oil Field Digboi - 1901.

WORLD CRUDE OIL RESERVES


World proven crude oil reserves are estimated at almost 1.5 trillion
barrels, of which OPEC Member Countries hold approximately 81 per
cent.
OPEC's Members in 2011 produced around 30.1 million barrels per day
of crude oil, or 42.8 per cent of the world total output, which stood at
about 70.4 million barrels per day.
INDIA RESERVES
India had about 125 Million metric tonne of proven oil reserves as April
2010 or 5.62 billion barrels as per EIA estimate for 2009, which is the
second-largest amount in the Asia-Pacific region behind China .
Most of India's crude oil reserves are located in the western coast
(Mumbai High) and in the northeastern parts of the country, although
considerable undeveloped reserves are also located in the offshore Bay
of Bengal and in the state of Rajasthan

Worlds Top Oil Reserves

Country

Rank

Reserves (Billion
Barrels)

OPEC Member

Saudi Arabia*

262.4

Yes

Canada

174.7

No

Iran

137.6

Yes

Iraq

115.0

Yes

Kuwait*

104.0

Yes

Venezuela

99.4

Yes

U.A.E.

97.8

Yes

half of the Saudi-Kuwaiti neutral zone which has 5 billion barrels of proved
reserves. Source: Oil and Gas Journal (December 21, 2009).
* Included

OPEC headquartered in Vienna


1. is a permanent intergovernmental organization, currently consisting
of 12 oil producing and exporting countries, spread across three
continents America, Asia and Africa
2. The members are Algeria, Angola, Ecuador, the Islamic Republic of
Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab
Emirates & Venezuela.

Country

Joined OPEC

Location

Algeria

1969

Africa

Angola

2007

Africa

rejoined 2007

South America

IR Iran *

1960

Middle East

Iraq *

1960

Middle East

Kuwait *

1960

Middle East

Libya

1962

Africa

Nigeria

1971

Africa

Qatar

1961

Middle East

Saudi Arabia *

1960

Middle East

United Arab Emirates

1967

Middle East

Venezuela*

1960

South America

Ecuador **

* founder Members
** Ecuador joined OPEC in 1973, suspended its membership from Dec. 1992-Oct. 2007

Consuming Nation 2011

1. United States
2. China
3. Japan
4. India
5. Russia
6. Saudi Arabia (OPEC)
7. Brazil

8. Germany
9. Canada
10. South Korea
11. Mexico
12. France
13. Iran (OPEC)

14. United Kingdom


15. Italy

(1000 bbl/day)

18,835.5
9,790.0
4,464.1
3,292.2
3,145.1
2,817.5
2,594.2
2,400.1
2,259.1
2,230.2
2,132.7
1,791.5
1,694.4
1,607.9
1,453.6

population in millions

314
1345
127
1198
140
27
193
82
33
48
109
62
74
61
60

bbl/year per capita

21.8
2.7
12.8
1
8.1
40
4.9
10.7
24.6
16.8
7.1
10.5
8.3
9.5
8.9

Producing Nation
1. Saudi Arabia (OPEC)

103bbl/d (2006)

Present Share

10,665

11.8%2

2. Russia

9,677

12.0%

3. United States

8,331

11.1%

4. Iran (OPEC)

4,148

5.1%

5. China

3,846

4.8%

6. Canada

3,288

4.0%

7. Mexico

3,707

3.6%

8. UA E(OPEC)

2,945

3.4%

9. Kuwait (OPEC)

2,675

3.0%

10. Venezuela (OPEC)

2,803

3.0%

11. Norway

2,786

2.8%

12. Brazil

2,166

3.1%

13. Iraq (OPEC)

2,008

2.9%

14. Algeria (OPEC)

2,122

2.6%

15. Nigeria (OPEC)

2,443

2.7%

Exporting Nation

103bbl/d (2011)

103bbl/d (2009)

103bbl/d (2006)

1. Saudi Arabia (OPEC)

8,336

7,322

8,651

2. Russia

7,083

7,194

6,565

3. Iran (OPEC)

2,540

2,486

2,519

4. U A E (OPEC)

2,524

2,303

2,515

5. Kuwait (OPEC)

2,343

2,124

2,150

6. Nigeria (OPEC)

2,257

1,939

2,146

7. Iraq (OPEC)

1,915

1,764

1,438

8. Angola (OPEC)

1,760

1,878

1,363

9. Norway

1,752

2,132

2,542

10. Venezuela (OPEC)

1,715

1,748

2,203

11. Algeria (OPEC)

1,568

1,767

1,847

12. Qatar (OPEC)

1,468

1,066

13. Canada

1,405

1,168

1,071

14. Kazakhstan

1,396

1,299

1,114

836

912

532

15. Azerbaijan (OPEC)

Importing Nation

103bbl/day (2011)

103bbl/day (2009)

103bbl/day (2006)

1.United States

8,728

9,631

12,220

2. China

5,487

4,328

3,438

3. Japan

4,329

4,235

5,097

4. India

2,349

2,233

1,687

5. Germany

2,235

2,323

2,483

6. South Korea

2,170

2,139

2,150

7. France

1,697

1,749

1,893

8. Spain

1,346

1,439

1,555

9. Italy

1,292

1,381

1,558

10. Singapore

1,172

916

787

11. Taiwan

1,009

944

942

12. Netherlands

948

973

936

13.Turkey

650

650

576

14. Belgium

634

597

546

15. Thailand

592

538

606

An oil refinery is an industrial process plant where crude oil is


processed and refined into more useful petroleum products, such as
gasoline, diesel fuel, asphalt base, heating oil, kerosene, and
liquefied petroleum gas.
Oil refineries are typically large sprawling industrial complexes with
extensive piping running throughout, carrying streams of fluids
between large chemical processing units.
Oil refineries are large scale plants, processing about a hundred
thousand to several hundred thousand barrels of crude oil a day.
Because of the high capacity, many of the units operate
continuously, as opposed to processing in batches, at steady state or
nearly steady state for months to years
The high capacity also makes process optimization and advanced
process control very desirable.

N
o

Refinery

Owner

Capacity

Barrels
per Day

Jamnagar Refinery
Complex

Reliance

62 mil
tons/annum

1,240,0
00

Paraguan Refinery
Complex

Petrleos de
Venez

Ulsan complex

SK Energy

40.2 mil
tons/annum

850,000

Yeosu Complex

GS-Caltex Chevron

40 mil
tons/annum

730,000

S Oils Ulsan refinery

S - Oil

33,5 mil
tons/annum

669,000

Exxon Mobil Singapore


Refinery

Exxon Mobil

30 mil
tons/annum

605,000

Baytown refinery - US

Exxon Mobil

28.6 mil
tons/annum

572,500

Ras Tanura Refinery

Saudi Aramco

27.5 mil
tons/annum

550,000

940,000

Rank
by
Capaci
ty

Company

Crude Capacity,
Thousand Barrels per
Calendar Day

Exxon Mobil Corporation

5,783

Royal Dutch/Shell (Netherlands)

4,509

Sinopec (China)

3,971

BP (United Kingdom)

3,325

ConocoPhillips

2,778

Chevron Corp.

2,756

Petroleos de Venezuela.S.A. (Venezuela)

2,678

Valero Energy Corporation

2,616

China National Petroleum Company (China)

2,615

10

Total (France)

2,451

The largest oil spill

The largest oil spill1991 - Gulf


War:
9,000,000 barrels
(378,000,000 gallons)
1979 - Bay of Campeche, Ciudad
del Carmen, Mexico:
140,000,000 gallons

Birds and furred mammals

Loss of insulating properties


Ingestion of toxic substances (esp. when grooming)
Inhalation of toxic volatile hydrocarbons

Marine mammals

Skin irritation
Clogging of baleen plates
(1990)]

While the global oil demand is projected to increase from 87.38 mbd in
2010 to 118 mbd by 2030, world oil production has been virtually flat
since 2004 and is projected to continue its downward trend between
now and 2030.
As a result, the deficit between global supplies and demand will continue
to widen reaching 9.20 mbd by 2015 and rising to 18.90 mbd in 2020
and 37.40 mbd by 2030 (see Table 4).

Rise of many emerging economies and the


shifting of global economic power balance from
the West to the emerging countries and the oilexporting countries.
Currently the West plus Japan account for 52% of
the global GDP. However, by 2015 the emerging
economies and the developing world are
projected to account for 50% of the global GDP.
The overall transfers from oil consumers to oil
producers in 2010 were estimated at $1.81
trillion, or 3% of world GDP.

The Arab Gulf Sovereign Wealth Funds (SWFs) are


equally growing in importance globally. In 2008,
they controlled assets estimated at $1.78
trillion.

2009
2010
2011
2015
2020
2025 2030
-------------------------------------------------------------------------------------------------------Demand
84.72 87.38
87.80 90.40 100.00
112.35 117.40
Supply
80.28 82.10
81.25 81.20
81.10
80.50 80.00
Supply / Demand
Deficit
- 4.44* - 5.28 - 6.55 - 9.20 - 18.90 31.85 - 37.40
-------------------------------------------------------------------------------------------------------Sources: US Department of Energys International Energy Outlook,
2010 / IEA,
World Energy Outlook, 2010 / BP Statistical Review of
World Energy,
June 2011 / OPEC Monthly Oil Report, March 2011 / The
US Joint
Operating Environment (JOE) 2010 / Authors
projections.
* Deficit is offset by OPECs production cuts.

Ethenol In order to reduce pollution and effect on crude import bill this
being viewed as alternative fuel for vehicles for blending with MS.
Bio-diesel (Non edible Oil Seeds) : Jatropha,Karanja, Pongamia. Etc)- In
order to reduce pollution and effect on crude import bill this being
viewed as alternative fuel for vehicles for blending with HSD.
Coal Bed Methane(CBM) is a Natural Gas (Methane) absorbed in Coal
and lignite seams. Coal is the both the source and reservoir rock for
CBM.
Gas from Gas Hydrates-Gas hydrates are basically Methane molecules
trapped in ice.
Gas from Coal gasification-Gas is produced by gasifying the coal by
injecting oxidants.
Conversion of Coal to Liquid hydrocarbon by process of Coal
Liquefaction.
Oil from Oil shale- Oil Shale is an organic material mainly called Kerogen
which can be converted into a substance similar to petroleum

Means better and more efficient use resulting in attainment of


higher energy use efficiencies, minimization of wasteful practices
and wastage and protection of the environment.
The need to reduce ever increasing gap between demand for and
supply of Crude oil and Petroleum products.
The need of the hour is to conserve petroleum by its judicious
use, substituting by it by other resources wherever feasible and
restricting its use only to the essential needs.
Joint responsibility of Industry, Individuals, Organizations, Oil
companies and Government.
Steps to promote conservation in Transport, Industrial,
Agricultural and Domestic secto
Activities are promoted and coordinated by PCRA/Oil companies
under the guidance and supervision of MOPNG.
Every year Jan 16-Jan 31 is observed as Oil conservation
Fortnight.

Petrol, Diesel burned as fuel gives off pollutants carbon monoxide,


nitrogen oxides, particulate matter and unburned hydrocarbons-to form
Air pollution.
Emission Standards set specific limits to the amount of pollutants that
can be released into the Environment.
Strict fuel quality norms are set to minimize the emission from burning
of Petrol and Diesel.
Unleaded Petrol and Low Sulphur Diesel are made available to reduce the
pollution.
Emission norms for Cars,LCV, Buses and Heavy trucks are based on
European model i.e. EURO I,II,III and IV.
Emission norms for 2/3 wheelers are based on Indian norms i.e. Bharath
Stage I,II and III.
Quality of Petrol and Diesel should meet the Specifications of Emission
norms for 4 or more than 4 wheelers and 2/3 wheeler
BS IV auto fuels have been introduced in 13 major cities from 01/04/10.
For the rest of country BS III fuels would be introduced by 1/10/10

Seasonal Weather
Severe weather events
U.S.Commercial Crude Oil Inventory Levels
OPEC Production Decisions
Marginal Cost of Production
The Impact of Technological Changes on Oil
Prices
Refinery Infrastructure

Asian Oil Demand


Oil Price Subsidies
Hypersensitivity to Geopolitical Events
National Oil Companies (NOCs)
The Declining Value of the U.S. Dollar
Disappointing Non-OPEC Production