Group 2 Praphull Kabtiyal – B19093 Raghav Grover – B19095 Rucha Kalekar – B19101 Sanchari Das – B19103 How Oil Evolved
• Discovered in 6th century
B.C. in China • Comercial Oil wells started drilling for oil in 1850s • Demand increased due to technological breakthroughs in 20th century • Replaced coal as primary source of energy • Has a variety of non-energy uses What exactly is the Oil Industry? Hubbert’s Curve
For any given geographical
area, from an individual oil producing region to the planet as a whole, the rate of petroleum production tends to follow a bell-shaped curve. Global oil production What now, after the 2018 Permian Discovery? Fossil Fuel Divestment
Fossil fuel divestment or fossil fuel divestment and
investment in climate solutions is an attempt to reduce climate change by exerting social, political, and economic pressure for the institutional divestment of assets including stocks, bonds, and other financial instruments connected to companies involved in extracting fossil fuels. • A 2015 report studied 20 fossil fuel companies and found that, while highly profitable, the hidden economic cost to society was also large. The report spans the period 2008–2012 and notes that: "for all companies and all years, the economic cost to society of their CO2 emissions was greater than Fossil Fuel their after‐tax profit, with the single exception of ExxonMobil in 2008.“ Divestment • Pure coal companies fare even worse: "the economic cost to society exceeds total revenue (employment, taxes, supply purchases, and indirect employment) in all years, with this cost varying between nearly $2 and nearly $9 per $1 of revenue. • Governments have signalled an end to the fossil fuel era • The Govts. have committed for the first time to a universal agreement to cut greenhouse gas emissions to avoid the most dangerous effects of climate change • Government and business leaders said the agreement set a new goal to reach net zero emissions in the second half of the century • It sent a powerful signal to Paris Treaty (Paris Climate global markets, hastening the transition away from Agreement) fossil fuels and to a clean energy economy • It is an alliance of 121 countries initiated by India • Most of the countries are sunshine countries – they lie either between the Tropic of Cancer and the Tropic of Capricorn • The primary objective is to work for efficient exploitation of solar energy to reduce dependence on fossil fuels • India has invited nations to facilitate infrastructure for implementation of solar projects • The alliance has been committed $1 tn as investment, and it is committed to making the costs of solar power more affordable for remote and inaccessible communities • The alliance will endorse India in achieving its goal of generating 100GW of solar energy and 175GW of renewable energy by 2022 • The countries shall support each other in research and development as well as other high level activities Does this mean the end of Hydrocarbons?
• There has been an
increasing divestment in fossil fuels, and increased pressure on Oil & Gas Companies to invest further in renewables. Companies like Shell and BP have reoriented them as Energy companies and are focusing on alternate sources of energy. Does it mean that the future of fossil fuels is bleak? Petrochemicals – The Future Drivers of the Oil & Gas Industry ICIS Global Petrochemical Index (IPEX)
• The ICIS Global Petrochemical
Index (IPEX) provides a capacity- weighted measure of the average change in petrochemical prices over time. • Dating back to January 1993, historical ICIS prices for a basket of 12 essential petrochemical products in the US, western Europe and northeast Asian markets have been weighted by regional nameplate capacity to generate a monthly index value.