This document discusses the oil price and its impact. It begins by outlining the importance of oil and its many uses. It then discusses the economics of oil supply and demand and how they are inelastic, leading to large price fluctuations. It outlines some major oil price benchmarks and describes key oil producing and consuming countries. The document then analyzes how volatility in oil prices impacts both global and Indian economies. It concludes by discussing India's vision for increasing energy self-sufficiency and alternative energy sources that may play a larger role in the future.

1. OIL PRICE AND IT’S IMPACT Sharoni Roy Roll # 7 Mandar Lalit Roll # 10 1

3. The Economics of oil

4. Quality Determination

5. Major Oil Price Benchmarks

6. Oil Producers and consumers

7. Oil price volatility

8. Impact of oil prices on global and Indian economy

9. India – Hydrocarbon Vision 2025

10. Future trends in oil prices

11. Alternative energy sources2

13. Diesel

14. Heating oil

15. Jet fuel

17. Rubber

18. Plastics

19. Dyes

20. Paints

21. Fertilizers

22. Pesticides

23. Medicines

24. Food additives

25. Make-up

26. Detergent

27. Candles

28. Photographic film

29. There are more than 4000 petrochemical productsSo can you imagine life without oil? 3

32. Rapid rise in price.

34. Increase in demand for oil in China and India.Politics , Expectation , Risks and Speculation effect demand and supply of oil. 4

36. API gravity greater than 10 indicates lighter oil otherwise it is considered heavier.

37. API gravity between 40 and 45 commands the highest prices.

39. Crude oil is referred as sour if it contains relatively high Sulphur.

40. While sweet oil commands a higher price because it has fewer environmental problems and requires less refining.The Best Quality API Gravity - 40 to 45 Sulphur – Low (Sweet Oil) 5 Best quality oil demands the highest price.

44. It is generally used for pricing Persian Gulf crude oil exports to Asia. India uses NYMEX WTI as oil benchmark. 6

46. May 09 , 2008 - $125

47. June 26 ,2008 - $ 140

48. July 11 ,2008 - $147.27

49. OPEC output

50. Attacks in Mexico

51. Tensions in Turkey , Iran

52. USD depreciationStrong demand Recession

54. China generated about 16% more oil than it consumed. 8

56. Upward pressure on interest rates due to tighter monetary policies for inflation

57. Rise in value of USD. Stronger dollar <-> greater economic damage to developing countries.

58. Higher subsidies pressure government budgets, increasing political and social tensions.9

59. Impact of Oil Prices on Global Economy : Advanced Countries 10

60. Trends In Import Dependency of India : Oil Import Dependency 11 Expected to rise to 94% levels by 2030 !

61. Share of Future Energy Supply In India : Oil Intensity 12 Share of Future Energy Supply In India (% ) Source: India – Hydrocarbon Vision 2025 –Ministry of Petroleum and Natural Gas, India Upto 2011 from Technical Note on Energy, Planning Commission, Govt. of India (1998-99). Beyond this period the figures have been extrapolated.

63. Inflation increases.

64. Government spending on subsidy increases.

65. Exports become weak.

66. Foreign currency reserve deplete.

67. Share market crumbles.

68. Investment decreases.13

70. Secure foreign sources sustainable long term supplies.

71. Meet deficit of oil by increasing Natural Gas supply and availability.

72. Maintain adequate levels of self-sufficiency in refining.

74. Create a policy framework for cleaner and greener fuels.

75. Have a fair pricing policy.Source : India Hydrocarbon Vision 2025, Ministry of Petroleum and Natural Gas

76. Future Trends in Oil Prices 15 Price to stabilize around $90 per barrel.

78. Wind Energy

79. Tidal Energy

80. Geothermal Energy

81. Nuclear Energy

82. Hybrid and battery electric vehicles

83. Helioculture

84. Biomass16

85. THANK YOU 17