petroleum

Made by
Duttatreya Awasthi
Charan Singh
 WHAT IS Petroleum?
• Petroleum is a naturally occurring liquid found beneath
the Earth’s surface that can be refined into fuel.
Petroleum is a fossil fuel, meaning that it has been
created by the decomposition of organic matter over
millions of years. It is formed in sedimentary rock
under intense heat and pressure. Petroleum is used as
fuel to power vehicles, heating units and machines of
all sorts, as well as being converted into plastics and
other materials. Because of worldwide reliance on
petroleum, the petroleum industry is extremely
powerful and is a major influence on world politics and
the global economy.
BREAKING DOWN Petroleum
• Petroleum and the extraction and processing of
petroleum drives the world economy and global
politics. The modern world owes its existence to
petroleum. Some of the largest companies in the world
are involved in the extraction and processing of
petroleum, with other companies creating products
that either require hydrocarbons to operate or are
petroleum-based: plastics, fertilizers, automobiles, and
airplanes. Asphalt, which is used to pave highways, is
made from petroleum. Vehicles that drive on highways
are made of materials derived from petroleum and run
on fuels refined from petroleum.
Disadvantages of Petroleum
• Petroleum use is embedded in modern life, but the
extraction process and use of petroleum are toxic for the
environment. Underwater drilling causes leaks, extraction
from oil sands strips the earth or uses precious water
and frackingdestroys the water table. Transporting
petroleum through pipelines has the potential to destroy
the local environment and shipping petroleum risks spills
and uses energy.
• Global petroleum use has had a negative impact on the
environment, as the carbon released into the atmosphere
increases temperatures and is associated with global
warming. Many products created with petroleum
derivatives do not biodegrade quickly, and the overuse of
fertilizers can damage water supplies.
 Demand for petroleum
products likely to rise
• India's annual demand for oil products is expected to grow 3.3 per cent next
financial year, according to the Petroleum Planning and Analysis Cell (PPAC),
India's energy data body.
• The country is expected to consume 167 million tonnes of refined fuels in
2015-16, against an estimated 162 million tonnes in 2014-15. With the Indian
economy projected to grow close to 7.4 per cent in 2014-15, the growth in
demand for diesel, is set to rise 4.1 per cent to 71.32 million
tonnes. Diesel accounts for about 40 per cent of refined fuel consumption.
Demand for petrol is expected to grow 7.2 per cent to about 19.7 million
tonnes.
 Importance
India is the 10th largest economy in the world with a nominal GDP of $2.05 trillion in 2014. It is
the third largest in terms of GDP purchasing power parity. The largest contributor to the GDP
in India came from the services sector (64.8%), followed by the industry sector (21.5%) and
finally the agricultural sector (13.7%) in 2013. Indian economy’s dependence on crude -oil is
well documented (Sivakumar, 2008). India is the 10th largest importer and 19th largest
exporter of oil in the world. India ranks among the top 10 largest oil-consuming countries in
the world. About 30% of India's total energy consumption is met by oil. Although India
consumes around 2.2 million barrels of oil per day, the production is only about 0.8 million
barrels per day. Therefore, 70% of its total oil consumption has to be imported.
Thank you