2. MBA-B BATCH(2011-2013) SOP GROUP-10TEENA KURIANSHEFIN J
PEREIRAKAMIA RAJU KASTHOORIRAHUL CYRIAC MATTAMPUNNOOSE
RAJANSREENANDH S 3. TOPICS Introduction Current situation Causes of
rising oil prices Effects on Economy How affects Common man
Solution Conclusion 4. INTRODUCTION Oil Main Energy Source Found
beneath the Earths surface Petroleum is recovered mostly through
oil drilling It is refined and separated Petroleum is used in
manufacturing a wide varietyof material Non Renewable 5.
Products& Uses 6. Crude Oil Products Gasoline Naphtha Kerosene
Liquefied petroleum gas Lubricants Perfumes Insecticides Synthetic
rubbers Detergents Chemical fertilizers 7. Current Oil Situation
India as a globally significant oil consumer In 2008, India was the
worlds fifth largestconsumer of crude oil and petroleum products
India is forecast to become the worlds fourthlargest oil consumer
by 2025 The recent fuel price rise will add to Indias
inflationworries Oil price crossed $30 in 2003 and reached $60
inAugust 2005. Oil price reached a historic high of$147.30 in July,
2008 amidst global economicrecession. 8. Government given power to
oil companies todetermining the price After June-2010 11 times
price hike 44 to 70 Last hike was on sep-15 Crude oil price in
international market-109 The world population is expected to grow
from6.6 billion today to 6.9 billion in 2011. Oil companies
claiming that they are facinglosses 9. Contd Projected oil demand
for 2011 is 31.57 billionbarrels On a single day, say 1 Nov 2006,
the demandwould be 86.5 million bpd (barrels per day). On an
average, the world consumes 4.58 barrelsper capita, every year. The
current oil demand is 82.8 million bpd 10. CONTD Tax cuts Lead to
Fiscal Deficit Goldman Sachs increased its inflation forecast
for2011-12 to 8.6 percent from 8.1 percent previouslyafter the fuel
price rise Credit Suisse said the the fuel price rise was in
linewith its expectations and will add 0.6-0.7 percentagepoints to
the wholesale price index oil price determination is no longer
solely dependanton the OPEC countries. 11. Petrol Prices across the
World Saudi Arabia 8.53 USA39.64 Kuwait 9.45 Bulgaria 57.29
Afghanistan 12.37 Canada 53.01 Nigeria 16.63 Poland62.48 India 70
Spain 64.25 Pakistan38.78 France 74.84 China 37.31 12. Top Ten Oil
ExportingTop Ten Oil ImportingCountriesCountries* Saudi Arabia
(8.73* United States (11.8million barrels per day) million barrels
per* Russia (6.67)day)* Norway (2.91)* Japan (5.3)* Iran (2.55)*
China (2.9)* Venezuela (2.36) * Germany (2.5)* United Arab Emirates
* South Korea (2.1)(2.33) * France (2.0)* Kuwait (2.20)* Italy
(1.7)* Nigeria (2.19) * Spain (1.6)* Mexico (1.80)* India (1.5)*
Algeria (1.68) * Taiwan (1.0) 13. Oil Prices 14. Oil Companies IOCL
ESSAR HPCL RIL BPCL CPCL ONGC OIL 15. PRICE
FIXING-PETROL&DIESELBASIC PRICE+EXISE DUTY+SALES DUTY +CUSTOMAS
DUTY+DEALER MARGIN 16. Causes of Rising Oil Price 17. Causes of
Rise in Oil Price Crude oil is a Non-renewable resource
Depreciating rupee that have increased thecost of crude imports.
Oil spills War and Political causes Investors demand Investment
slowdown 18. Contd. Supply cut-off Growing demand No spare capacity
Standard of living Natural calamity Under recovery of oil companies
19. Effects On Economy High Oil Price Lead to Inflation Business
will badly affect Tourism will badly affect Aviation Turban fuel
[ATF] price hike will badly affect aviation industry as well people
depending on Air Traffic 20. Export and import become costly
Depreciating the value of money GDP will come down if oil price
increase It will affect current account deficit Affect stock market
21. lHow oil price Affects common Man? 22. The high price of
LPG,Kerosene is a problem People using petrol, diesel vehicle will
haveproblem Family budget of salaried will have change Small scale
business will have problem Bus charge hike will create problem
Common goods price will increase 23. Solutions & Conclusions
24. Solutions 1.Use of more Renewable Energy.Encourage use of
renewable resources rather than natural resources which are
nonrenewable.. Develop bio fuel from plants like Jetropha..
Discovery of potential substitutes for oil. 2.More Oil Exploration
and Oil Refineries..Establishment of oil refineries at potential
places in thecountry..Exploration of new source of oil within the
country ,in order toreduce the import of crude oil. .Thus we can be
self reliant in fixing the price of the oil 25. 3.Reduce the
transportation cost of oil. .Oil is not uniformly distributed
around the globe. .Huge amount of oil is lost during its
transportation .To avoid this cheap and safe methods should
beadopted .eg. Pipeline. 4.Use Public Transport System and reduce
the numberof vehicles. .Efficient public transport system. .Instead
of using one car for each use of one car byfour or five person
should be encouraged. 26. 5.Public Awareness .Researches for
finding alternatives for oil cannot be successful without the
support of public. .Public should be made aware about the
decreasing oil resource and natural resources.People should be
educated about the efficient usage of fuel and the importance of
the oil conservation.. Some methods to create awareness among
people is through social networking and advertisement. .Government
had made many rules and regulations ,but people break those .Hence
people should be responsible and take steps to reduce the hike of
oil prices. 27. 6.Government Measures. .Pass laws to check the
number of vehicles owned bya person. .Government should improve the
standard of thepublic transport system. .Oil should be avoided from
the stock market. So that hoarding of oil can be eliminated. .Tax
imposed by both central and state government should be reduced
which will decrease the oil price . Government should have proper
control over the oilcompanies ,in fixing the price. 28. 7. Fuel
Efficient Methods. . Vehicle Engines should be made more
fuelefficient. . Switch off the vehicles in red signal. .Engines
should be switched off when not in use. 29. Conclusion Oil is a
finite resource and its getting harder andharder to find it. We
have to Preserve it for future generations We have to use this
energy source properly Over Exploration should be avoided We cant
afford the high price of oil Responsibility of every person to
preserve oil Efficient use of oil for Economic prosperous
