SAGAR MOJIDRA - 1401

MAYUR KUNDER - 1393

SANTOSH GUPTA - 1373
RAKESH CHAVAN - 1365
AVINASH KADAM - 1382
KASHINATH MISHRA - 1399

When the price of oil continues to go up
because the demand becomes greater
and greater with seemingly no end,
either because of depletion of oil or
restriction on trade of oil
OPEC is organization of Petroleum
Exporting countries.
Started in 14/9/1960-Oil rich nations
joined together.
Original members are IRAN, IRAQ,
KUWAIT, SAUDI-ARABIA & VENEZUELA.
Later it was joined by nine more govt.
Qatar, UAE, Libya, Indonesia, Algeria,
Nigeria, Ecuador, Angola and Gabon.

OPEC had its headquartered in Geneva,
Switzerland in the first five years of its
existence. This was moved to Vienna,
Austria on 1/9/1965.
OPEC Objective is to co-ordinate and unify
petroleum policies among member
countries, in order to secure fair and stable
for petroleum producers, an efficient,
economic and regular supply of petroleum
to consuming nations, and fair return on
capital to those investing in the industry.

1973 - Yom kippur war
1979 - Iranian revolution
2000s energy crisis
The 1973 oil crisis started in October 1973,
when the members of Organization of
Arab Petroleum Exporting Countries or
the OAPEC (consisting of
the Arab members of OPEC,
plus Egypt, Syria and Tunisia) started an
oil embargo.
The price of oil products increased from
$2.59 to $ 11.65 per barrel
The increase of oil price lead to inflation
in oil consuming countries
Western nations Central banks decided
to sharply cut interest rates to encourage
growth
Forced the other countries to find an
alternative for fossil fuel
India - The Refinery expansion projects were
implemented for improving refining capacity
U.S.A - Emergency highway energy conservation Act,
gasoline station will not sell oil product during
weekends
European Economic Community - The Govt. banned
flying, driving, boating on sundays
Sweden - Govt rationed gasoline and heating oil
Brazil - Proalcool or Pro-alcohol era ( use of ethanol)
Japan - Industries shifted from oil intensive to
electronics
In March 1974 embargo was lifted after
negotiations at the washington oil summit
Reasons for lifting the embargo :
Oil producing countries are heavily
dependent on oil income
The research and discovery of the
alternatives of oil
The 1979 energy crisis started when the Shah of
Iran, Mohammad Reza Pahlavi, fled the
country amidst protests. These protests severely
disputed the oil industry in Iran, leading to
decreased production and the suspension of
exports. Ayatollah Khomeini was soon installed
as the new leader of the country, but oil still
flowed slowly out of the country, leading to a
continued increase in prices.

In 1980, Iraq attacked Iran, leading to a
slowdown in oil production from both Iraq and
Iran.
The recession brought double-digit inflation
and sent interest rates up to 20 percent
Huge depression for car industry
Japanese car manufacturers like toyota,
honda started building small cars which
were fuel efficient
American economy plunged into a
recession. The threat of a gasoline shortage
and rationing created long lines at gas
stations
Current account deficit has widened and the value
of the rupee dwindled.
India slashed crude imports from Iran by 26.5 per
cent during 2012-13, buying just 13.1 million tonnes,
against 18.1 million tonnes the previous year
Because of the sanctions imposed on Iran by US &
European union, India pays Iran in rupee through a
UCO Bank branch in Kolkata.
India ranks among the top 10 largest oil- consuming
countries and oil accounts for about 30% of India's
total energy consumption.
IMF report says that a increase in USD 5 per barrel
in oil price would lead to a 1.3% increase in inflation
and a drop of 1% in GDP growth.
Higher oil prices generates high inflation, leading to
increased input costs, reduced non-oil demand
and lower investment in net oil importing countries.
tax revenues tend to fall and the budget deficit
increases, due to rigidities in government
expenditure, which drives interest rates up.
soaring oil prices and inflation in India pose new
risks to economic recovery


During 2003, the price rose above $30, reached
$60 by 11 August 2005, and peaked at $147.30 in
July 2008.
The recession caused demand for energy to shrink
in late 2008, with oil prices falling from the July 2008
high of $147 to a December 2008 low of $32
Oil prices stabilized by October 2009 and
established a trading range between $60 and $80.
In the United States, gasoline consumption
declined by 0.4% in 2007, then fell by 0.5% in the first
two months of 2008 alone
World food prices increased dramatically in 2007
and the 1st and 2nd quarter of 2008 creating
a global crisis
Initial causes of the late 2006 price spikes
included droughts in grain-producing nations and
rising oil prices.
Oil price increases also caused general
escalations in the costs of fertilizers, food
transportation, and industrial agriculture.
Peak oil is the point in time when the maximum
rate of petroleum extraction is reached, after
which the rate of production is expected to enter
terminal decline
Of the world's largest 21 fields, at least 9 are in
decline
The world's second largest oil field, the Burgan
Field in Kuwait, entered decline in November 2005
According to the International Energy Agency
,India will become the largest single source of
global oil demand growth after 2020
Domestic crude production is slated to rise by
11% in 2012-13 and a further 8% in 2013-14 to
reach just under one million barrels per day
The long-term target must be to bring the ratio
of imported crude to total consumption down
to the historical level, last seen in the 1980s and
early 1990s
encourage more joint ventures in exploring
foreign oil and gasfields
reduce bureaucratic delays
Using shale gas strategy(extracting trapped
gas in sedimentary rocks)
India has stepped up its oil diplomacy to
prepare the ground to strengthen the
countrys energy security
The visiting leaders in India will be from
Saudi Arabia, Russia and Iran
Plans to setup an oil pipeline from Russia to
India
Focus on energy, trade & business and co-
operation in space technology
Krishna-Godavari Basin The site is known for the D-6 block
where Reliance Industries discovered the biggest natural gas
reserves in India in 2002. It was also the world's largest gas
discovery of 2002
ACB has registered an FIR naming Reliance Industries
Ltd boss Mukesh Ambani, oil minister Veerappa Moily, former
oil minister Murli Deora, and ex director-general hydrocarbons
V K Sibal as accused.
FIR states that gas prices in the country will be doubled from
April 1 this year due to alleged active collusion between RIL
and some ministers of the central government.
In case this price hike is allowed to take place, it will make the
life of common man miserable since it will have a cascading
effect on transport, domestic gas and even electricity prices.
The impact of this hike in gas price would cost the country a
minimum of Rs 54,500 crore every year
There is a growing gap between discoveries
and production
Oil discovered 40 years ago is the basis of
current oil production.
The declining rate of oil discoveries makes it
painfully obvious most of the oil has already
been discovered.
The technology for finding oil has improved
greatly since the major discoveries, yet little oil
has been found in recent years.
World oil production is running flat out. Only the
Saudis claim to have the ability to produce
more


According to British Petroleum world oil reserves stand at 1238
billion barrels, so there is enough oil to last 40 years if
production holds constant and no new oil is found
the Middle East has 61% of the world's oil reserves. Africa has
9.6% and the Russian Federation has 6.4%
The United States possesses 2.6% of the worlds oil reserves,it
produces 9.2% while it consumes 24% of the world's oil
production
The majority of the world's oil comes from old oil fields. For
example, Kuwait still supplies 3% of the world's oil from a 70
year old field. The world's largest oil field, Ghawar, a 57 year
old oil field, still supplies 5% of the world's oil
The Middle East has enough oil to last 88 years at present
production rates. Africa has 33 years. India and United States
will be increasingly dependent on oil imported from those
places