|
 




 


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Tanvi Khattry
Abhishek Kumar
Saurabh Awasthi
Sanjeev Kr. Jha
 An overview«
G As countries develop, industry, rapid
urbanization, and higher living standards
drive up energy use, most often of oil.
G Thriving economies such as |

and


are quickly becoming large oil
consumers.
G |hina has seen oil consumption grow by
8% yearly since 2002, doubling from 1996-
2006.
G @ndia's oil imports are expected to more than triple

from 2005 levels by 2020, rising to 5 million barrels

per day.

G World crude oil demand grew an average of 1.76%

per year from 1994 to 2006, with a high of 3.4% in

2003-2004.
G The world increased its daily oil

consumption from 63 million

barrels (Mbbl) in 1980 to 85

million barrels in 2006.

G Although demand growth is

highest in the 


  

like @ndia, the United States is the

world's largest consumer of

petroleum.
G üetween 1995 and 2005, U.S. consumption grew from

17.7 million barrels a day to 20.7 million barrels a day,

a 3 million barrel a day increase.

G |hina, by comparison, increased consumption from 3.4

million barrels a day to 7 million barrels a day, an

increase of 3.6 million barrels a day, in the same time

frame.
G The  




 
 now

expects global oil demand to increase by about 1.6

million barrels a day in 2010.

G A study published in the journal 
 j


predicted demand would surpass supply by 2015

(unless constrained by strong recession pressures

caused by reduced supply).

 3


 


An introduction:
G @ndia is well-known for its historical
civilization, diverse religions,
enormous population, spicy food and
tasty tea. üut discoveries of significant
oil and gas resources in recent years
have placed the country in the spotlight
of the oil & petroleum industry.

G Resulted in a rapidly growing

economy.
G @ndia¶s tea plantations and the discovery of its
earliest oilfield are connected.

G When üritish explorers began to map the dense

jungles of @ndia¶s northeastern Assam region in the
19th century, old reports from farmers of oil
seepages in the area drew their attention.

G @n 1865, the Geological Survey of @ndia

recommended drilling near some of these seepages.
 G only two years later, oil was struck in
Assam. This was the first mechanically
drilled and successful oil well in @ndia, but
it did not produce much.

G The commercial oil industry in @ndia truly

A depiction of the first commercial
production of oil in @ndia in 1889 is
exhibited in the Digboi Museum in
Assam, @ndia.
began in 1889, when, legend has it, an
elephant working for the Assam Railways
& Trading |ompany accidentally stepped
into an oil seepage. ³Dig! üoy!´ cried the
excited Englishman. The workers thus
drilled the discovery, which is now the
well-known Digboi oilfield.
G Until the 1960s, @ndia¶s oil production was confined

to Assam with a daily output of about 5,000 barrels.

G Then oil was discovered in Western @ndia, first in the

onshore |ambay üasin in 1958 and later in the

offshore üombay üasin in 1974.

G These fields increased @ndia¶s daily production to

700,000 barrels.
G âor decades, the @ndian government
largely controlled the petroleum industry.
G Petroleum exploration and production
(upstream activities) were left to the two
nationalized companies o

 



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 o|
 o



 while refining, distribution
and marketing (downstream activities)
were conducted by the 

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.
G over the last decade, @ndia¶s economic
liberalization coupled with the increased domestic
and global demand for oil.

G Advances in drilling technology in deepwater

basins have changed the face of the petroleum
industry in the country. This, in turn, has motivated
new geologic appraisal of sedimentary basins in
@ndiaë
G The recent discoveries in Assam demonstrate excellent
potential for new oil reserves even in such a classic and
mature petroleum province.
G Additionally, the oil and gas discoveries in the onshore
Rajasthan and |ambay basins indicate the extent to
which many of @ndia¶s sedimentary basins have
remained underexplored.
G Recent oil and gas discoveries in @ndia are attracting
major international companies to enter @ndia's
petroleum ventures.
 j





G @ndia is the world¶s fifth-largest energy consumer.

G |oal still dominates (57 percent).

G oil accounts for 28 percent and natural gas supplies

8 percent of @ndia¶s energy consumption.

G @ndia is the world¶s sixth-largest oil consumer and

imports three-quarters of its oil from overseas
(mostly from the Middle East). Therefore, @ndia
itself will probably remain the sole buyer of the
country¶s oil and gasë
G @ndia is soon emerging as a leading exporter of refined
petroleum products in the world.

G @ndia has around 6000 Kms of product pipelines along with

over 34,600 Government of @ndia (Go@) owned retail outlets.

G The petroleum products obtained by oil refining are Gasoline

or Petrol, Kerosene, Diesel, âuel oil, Asphalt, Paraffin Wax,
Lubricating oil, Liquefied Petroleum Gas (LPG) etc.

G These products by the oil & gas exploration and production

companies in @ndia have a wide market world over.
 oil & gas companies @ndia
j

 !

"
 j !#
G o| - oil & Natural Gas |orp (exploration and
production)
G o - oil @ndia Limited (exploration & production)
G o| - @ndian oil |orporation (refining & marketing)
G j| - üharat Petroleum |orporation Ltd (refining
and marketing)
G j| - Hindustan Petroleum (refining & marketing)
G  j| - Gujarat State Petroleum |orp
j


o
$ 
 



 


G % - Reliance @ndustries Limited (@ndian oil & gas
company)
G  % (@ndian oil & Gas company)
G |airns Energy @ndia (Scottish)
G üritish Gas energy
G Nikko Resources (|anadian)
G |hevron oil Limited
G Shell oil
G üP
x
  
 

   


    
  




 
 

   
 Reliance Petroleum
Ltd.(RPL)
G 1991, Reliance industries set up a new
subsidiary, Reliance Refineries Private Ltd.
The subsidiary later changed its name to
Reliance Petroleum Limited.
G @n 1993 launched a public offering, which at
that time was @ndia's largest ever @Po.
G @n 1997 Reliance announced a plan to build
one of the world's largest and most modern
petroleum refining complexes in Jamnagar,
Gujarat, at a cost of some $6 billion.
 Reliance Petroleum Ltd.(RPL)
G Turnover achieved for the quarter
ended 30th June 2010 was 61,007
crores (US$ 13.1 billion), an




& ''() over the
corresponding period of the
previous year.
G @ncrease in volume accounted for
r'r)  



and
higher prices accounted for 39.7%
growth in revenue.
G Exports were higher by (*+,)

+-'r  
 (US$ 7.1 billion) as



 . (/(r, crores in the
corresponding period of the
previous year.
 1. Exploration
G @ndia remains one of the least explored regions
in the world with a well density of 20 per
10000kms.
G of the 26 sedimentary basins, only 6 have
been explored so far.
G The oil and Natural Gas |orporation (oNG|)
and the oil @ndia Limited (o@L)- the two
upstream public sector oil companies- in
1981/82 had taken their search to previously
unexplored areas.
 Government regulations
G The government in order to increase exploration
activity, approved the 
 0 

 



j
 j in March 1997.

M @ts salient features:

G An outstanding feature of the new policy is that it

offers a level playing field to the national oil
companies and private operators.
G The oNG| and o@L will, henceforth, have to bid for
blocks instead of being awarded blocks on nomination.

G The possibility of seismic option in the first phase of

the exploration period.

G Royalty payments at the rate of 12.5% for the onland

areas and 10%for the offshore. Half the royalty of the
offshore area will be credited to a hydrocarbon
development fund to fund and promote exploration
related study and activity.
G As many as 94 blocks have been given out for
exploration under the NELP since April 2000
against just 22 blocks in the preceding 10 years.

G While oNG| holds 57. 2 per cent of the total area

licensed by the government for oil exploration.

G Reliance @ndustries and oil @ndia Ltd have

grabbed licences covering around 26. 6 percent
respectively.
 2. Technology
G An analysis report of the oil & gas industry in @ndia
shows the stagnation in the current oil production and
extraction processes.
M 

"
G Lack of technical expertise in @ndia.
G An acute shortage of skilled labor force
G Absence of latest drilling equipments and machines.
 Technological solutions
G âoreign collaborations for better technology
especially in deepwater drilling and extraction
processes.

G @t also bring the necessary finance to the projects.

G Special training institutes need to be set-up for

providing skilled labor for technical exploration
services.
M World-level profession practices like:

optimum use of the available resources and

equipments at the lowest possible costs.

Proper oil & gas waste regulation methods, etc.