1%

22%

7%

44%

22%

4%

2013Energy Mix

Nuclear BIOMASS NATURAL GAS

COAL PETROLEUM OTHER RENEWABLE

Domestic Production39.78 MT

Domestic Production:

Net Imports:

Deficit:

184.80 MT 37.86 MT

21.64MT35%

20%3%

42%

1990

Domestic Production:

DeficitNet Imports:

134.73 MT

704.34 MT

155 MT

Current scenario: Import Reliance

Domestic Production

DeficitImports

40.68 BCMs

1.62 BCM 56 BCM

42%

24%

11%

7%

2035

7%

TRENDS: INCREASING DEMAND AND TRAILING SUPPLY

Annual Natural gas consumption rate rose 8% from 2000 to 2012 and consumption rose to 242.66 million cu m/day in fiscal 2012-13.

CRUDE imports: 366.20 thousand barrel per day in 1990 to more than 3.7 million barrels per day today.

7.61% in the net imports of crude oil during 2012-13 over a single FY 2011-12

SHIFTS:Largest source shift BIOMASS COAL

EIA projects India will need 8.2 million barrel crude per day by 2040. Expected Natural gas consumption to rise to 746 million cu m/day in fiscal 2029-30. In order to bridge the demand-supply gap, There is a need to increase the domestic productivity by

key oil and gas suppliers with the use of improved technology.

Energy Security

Having access to

requisite volumes of

energy at affordable

prices.

With impenetrable

disruptions for future.

Import Dependent Country: Supply

Focused

Export Dependent Country: Demand

Focused

Energy Self

Sufficiency

State of

sustainable living

and development

without aids or

interaction. Exploration and consumption of

native resources for meeting the needs.

JAPAN: Domestic shortage & repeated Nuclear power plant

breakdowns.Manages need with best international

policy.

Supplies Engineering, Construction,

Finance & Modern Technology.

Govt. supported R&D policy making major exports of Energy-

Sector capital equipment.

Technological

Reforms has led to

findings like Shane

gas to be self

sufficient and

developed.USA: Most relaxed

imports during developing stage.

Focused on its Native resources

potential.

The blocks for bidding under NELP are not discriminated on their off-shore or on-land types, thus making bidding difficult on blocks having physical risk involved and intensive production procedures.

The government’s reform to have fewer blocks with higher quality data in bidding shows National Data Repository’s (NDR’s) failure to calculate geo-seismic data for many of the potential blocks.

Fluctuation in government’s market policy. Companies mandated to fix oil prices and directed for who purchases the crude and how much they receive.

Internal political instability and unsynced foreign policy has shown cases like Myanmar where India’s investment, engineering & construction to explore Myanmar gas reserves were waste and China cornered the gas.

Failure of government to adopt the policy to extend the seven year-long tax holiday provision for the oil and gas sector.

Market has seen a substantial rise in prices of daily commodities like petrol, diesel and LPG due to heavy levies (entry tax, octroi and input tax). Large under recoveries has led to low cash flow

in E&P sector. Expansion & new investment is getting difficult with government regulated rates.

NO TAX REDUCTION

NO DATA

HEAVY TAXES

IMPORT DUTIES

BRAZILIANENERGY SCHEME

HYDRO-CARBON

LAW

Passed in 1997.Opened the sector to private participation & competition.

Created the ANP, the hydrocarbon sector regulatory agency to regulate

the sector.

PETROLEUM INVESTMENT

LAW

Adopted in 1997.

Established a legal and regulatory framework & liberalized oil

production.

MARKET LIBERALISATIO

N

Opening up the oil industry in 1998 ANP announced to put more than

92 %of the nation’s sedimentary basins for bidding.

This marked the end of ‘Petrobras’ petroleum monopoly.

Government has discouraged long-term

public planning and has relied on latest

international market trend

Norway has laid stress on using a predictable

framework, constructing a national petroleum cluster and establishing an oil fund to guard its economy.

Politicians have decisively built the sovereign fund, to

avoid overheating the economy.

NORWEGIAN SCHEME

• EIA says extended tax holiday of 10 years for blocks having a substantial portion involving drilling offshore at a depth of more than 1,500 meters is good for foreign investment.

• CAG audit of selected blocks in different phase of E&P based on financial materiality; and other blocks to be audited by CAG appointed auditors. CAG’s authority to audit the blocks would remain.

Recommendations from various committees

Recommendations from various committees

ITS NEVER LATE FOR A CHANGE : STEPS AHEAD

Investors don’t want to act as pure play explorers. They wish to have multi-dimensional control over upstream, midstream and downstream businesses. They want unfettered right to market the produce and this only can be achieved with open market policies.

Multi-dimensional control of investors over upstream, midstream and downstream businesses.

 Implementation of open acreage system to attract foreign participation and utilization of reserves.

Create a pool of technically qualified human resources to serve the domestic and international clean energy markets.

Naphtha is the major substitute and cheaper preliminary asset used in industry shall be marketed with less of government interference. India being on an economic rise need to strengthen its industrial growth. A 5% import duty is unbearable, for industrial sector.

Providing a tax relaxation on Gas.      

Reduce import duty from 5% to 3% for industrial sector.

Promote the market for renewable energy resources & target their use in remote areas and for decentralized power generation.

₰ Implementing Open acreage system.₰ Utilize own coal resources so as to buy time

for effective switchover to an alternate energy economy.

₰ Import Duties on industrial brought down from 5% 3%.

₰ Interstate Levies like on transport, VAT be reduced for efficient and similar fuel tariffs throughout the nation.

₰ Put Market freedom. With limited and pre-defined government interference on production and marketing.

₰ Reduce the Under Recoveries, with a slow and gradual price hike of oil and gas commodities.

₰ Administer new technology; assist and stress NDR to calculate relevant and obligatory geo seismic data.

₰ Providing basic amenities: Construction, Transport, Machinery to interested foreign investments at early stages.

₰ Publicizing Shale gas and Coal-bed methane: supporting its early exploration.

₰ Promoting renewable energy: Centralized allotment of renewable energy mix per state; providing tax-relaxation on oil & gas for achieving the goal and bypassing it.

₰ Financial support on ‘Enhanced oil Recovery’ methods.

₰ Centralized permit for sites, with state interference removed. Centrally fixing a single tax, for upstream stage to downstream stage.

₰ Developing Technology and human resource so as to provide skilled labour to the foreign directive. HUMAN

RESOURCE

Energy Self-Sufficient INDIA

₰ Promote the market for renewable energy resources and target their use in remote areas and for decentralized power generation.

₰ Gradually pull back investment from sites over other countries to focus on native resources and shift from energy security to energy self-sufficient.

₰ Make solar energy the mainstay for satisfying national energy needs.

₰ Pursue the development of nuclear energy.₰ Coalbed Methane should be used as a substitute

for renewable energy mix.₰ Reduce coal requirements & prefer natural gas as

the major fuel. 

2015 2020 2025 2030

THANK YOU

(MBM ENGINEERING COLLEGE, JODHPUR.)

THE RADICAL CONSERVATIVES

TEAM:MAHIPAL

SINGH

SANKET GANDHI

VEDANT

JAIN