This document provides an overview and outline of topics related to energy products and commodities, with a focus on crude oil and natural gas. It discusses major crude oil types and producers, factors influencing crude oil prices, India's energy mix and consumption trends, and regulations around energy product marketing and storage in India. The outline covers topics like OPEC market dynamics, global oil demand and supply balances, crude oil reserves and stocks, and India's oil production, imports, subsidies and pricing mechanisms over time.
This document provides an overview and outline of topics related to energy products and commodities, with a focus on crude oil and natural gas. It discusses major crude oil types and producers, factors influencing crude oil prices, India's energy mix and consumption trends, and regulations around energy product marketing and storage in India. The outline covers topics like OPEC market dynamics, global oil demand and supply balances, crude oil reserves and stocks, and India's oil production, imports, subsidies and pricing mechanisms over time.
This document provides an overview and outline of topics related to energy products and commodities, with a focus on crude oil and natural gas. It discusses major crude oil types and producers, factors influencing crude oil prices, India's energy mix and consumption trends, and regulations around energy product marketing and storage in India. The outline covers topics like OPEC market dynamics, global oil demand and supply balances, crude oil reserves and stocks, and India's oil production, imports, subsidies and pricing mechanisms over time.
This document provides an overview and outline of topics related to energy products and commodities, with a focus on crude oil and natural gas. It discusses major crude oil types and producers, factors influencing crude oil prices, India's energy mix and consumption trends, and regulations around energy product marketing and storage in India. The outline covers topics like OPEC market dynamics, global oil demand and supply balances, crude oil reserves and stocks, and India's oil production, imports, subsidies and pricing mechanisms over time.
Energy Products Overview of Commodities – Energy Products
By Dr. Shunmugam Session Outline • Introduction to Energy Products – Production & Consumption • Crude Oil Variants • Major Producers of Crude Oil and Natural Gas • Energy Value Chain • Overview of Energy Trading (Physical) • OPEC and Non-OPEC Countries • Major Consumers of Crude Oil and Natural Gas • Factors Influencing Crude Oil Prices • Historical Development and Current Trend in Crude Oil Prices • Overview of Energy Markets in India • Regulation of Marketing of Energy Products and Storage • Coal Market in India – Coal Imports and Pricing of Coal • Natural Gas – International Spot and Derivatives Markets • Natural Gas and India – Production, Imports and Usage • Natural Gas Trading in India • Overview of Trading Mechanism Primary Energy Mix for India Source-wise Consumption of Energy (2018-19) The Decline of Coal in Three Charts Trends in Domestic Consumption of Energy OPEC Market Share Crude Reserves – Opec Vs Non-Opec Market Share – OPEC Vs Non-OPEC Figure 7 OPEC1, non-OPEC2 and total world supply, as well as OPEC market share, 2015–2019
Notes Source 1 Including OPEC NGLs+non-conventional oils. OPEC Secretariat. 2 Including processing gains. World Crude Oil Demand/Supply World oil demand and supply balance, 2016–2019
Memo items Commercial and(mb/d) SPR – 2154 mb - China +FSU – 789 /310 mb- 60/62 days India SPR - 36.9 mb – 10 days Major Crude Oil Types OPEC Reference Basket Zueitina Arab Light Brent Dated
Other non-OPEC crudes
Basrah Light Isthmus Bonny Light Djeno Oman Es Sider Suez Mix OPEC Basket crudes
Girassol Tapis Iran Heavy Urals Kuwait Export West Texas Intermediate Merey Other OPEC crudes
Arab Heavy West Texas Sour
Murban Qatar Marine Dubai Rabi Light Dukhan Saharan Blend Zafiro Forcados Iran Light Geographical Spread of Oil Benchmarks for Crude Oil Brent – Roughly about 65 percent of physical trades reference Brent - refers to oil from four different fields in the North Sea: Brent, Forties, Oseberg, and Ekofisk - Light and sweet, making them ideal for the refining of diesel fuel, gasoline, and other high-demand product. - Waterborne production units makes it easier to transport
West Texas Intermediate - the main benchmark for oil consumed in the United States - Oil extracted from wells in the U.S. and sent via pipeline to Cushing, Oklahoma - It is very light and very sweet (Sulphur - <0.5%), making it ideal for gasoline production, in particular - Land-locked supplies makes it costlier to send it to the main consumption centers in Asia
Dubai/Oman - the main reference for Persian Gulf oil delivered to the Asian market - A “basket” product consisting of crude from Dubai, Oman or Abu Dhabi - heavier and has higher sulfur content, putting it in the “sour” category - Useful reference for any oil other than WTI or Brent Crude Refining and Products Uses of Crude Oil Declining Crude Oil Production and Increasing Import Dependence Crude Oil Production and Imports – Continued.. Increasing Dependency and Need for Diversification
Indian Basket Price – Sour Grade – Dubai Oman Grade – Sweet Grade – Brent – 74.77: 25.23 - FY18 India - Petroleum Products Production and Subsidies– FY19 History of Petroleum Products Pricing in India 1974 – 1998 – Administered Pricing - Government fixes the prices from time to time - Often upward movement is easier not the downward movement 1998 – 2006 - Import Parity Price Mechanism - FOB Price @Gulf + Prem/Disc – Argus/Platts +Freight + Insurance + @Exchange rate + Customs + Wharfage and Port Charges + Oceanic Losses 2006 – Till date – Trade Parity Price Mechanism - 80 % Import Parity Price + 20% Export Parity Price Crude Oil Fundamentals in a Picture Natural Gas - Introduction
• Natural gas is a colourless, odourless, highly flammable gaseous
hydrocarbon which gives off a great deal of energy when burned. • Natural gas is relatively clean burning, emitting relatively low levels of harmful combustion byproducts. • Like oil, natural gas is described as sweet or sour depending on, in the case of gas, its hydrogen sulphide content. • Hydrogen sulphide is highly poisonous and is removed during processing. • The major use for gas is in homes, businesses and factories for heating, cooking and cooling. • Natural gas is increasingly used as a source of energy for electricity generation via gas turbines and steam turbines. • Compressed natural gas (CNG) is used as a vehicle fuel for public transport buses. Physical Flow of Natural Gas Natural Gas – Global Scenario
• Globally, major producers of Natural Gas are USA, Russian Federation,
Iran and Qatar. • Major consumers of Natural Gas are US, Russian Federation, Iran and China. • Natural gas market hubs have been a key feature of competitive gas markets in the US, UK and Europe. • Henry Hub in the US is the most successful gas market hub with a large, liquid futures market linked to the price index at the hub. • Benchmark pricing is also provided in UK at the National Balancing Point (NBP) and the Netherlands at the Title Transfer Facility (TTF). • Several price indexes have been developed to track LNG trade in Asia. World Share of Production & Consumption of NG (2018-19) Crude Oil & Natural Gas – Price Relationship Natural Gas Correlation vs Commodities Natural Gas Storage Levels Gas Rig Count responding to NG Prices Natural Gas Vs Gas Rig Count Natural Gas Demand, Production, EXIM Natural Gas Trading Locations in the US Assessment of LNG Tightness Natural Gas - Price Influencing Factors Demand & Policies of Importers Price of Economic Growth Coal
Crude Chinese Oil Stock- Prices Building
Price EIA, API & Influencing IEA Factors Freight Reports Charges
US $ Seasonal Factors Storage Capacities Weather/ Cyclone Overview of Domestic NG Market • Share of natural gas in the energy mix of India is expected to increase to 20% in 2025 as compared to 11% in 2010. • Domestic Natural Gas demand far exceeds domestic supply with additional demand being catered through imported R-LNG. • India is the fourth-largest Liquefied Natural Gas (LNG) importer and accounts for 5.8% of the total global trade. • Major countries from which India imports Natural Gas are Qatar and Nigeria. • India LNG Market By Source (Qatar, Australia, USA, Russia, Algeria & Others) • By Application (Fertilizer, Power, City Gas Distribution, Petrochemicals, Utilities, Manufacturing, Others) • By Region (West, North, South & East) • ONGC and Oil India Ltd. (OIL) are the leading companies with respect to production volume, private fields also contribute to production. • Gas Transmission and Marketing in India is majorly handled by GAIL. Overview of Domestic NG Market • Import of natural gas has increased from 12.92 BCM in 2009-10 to 28.74 BCM in 2018-19, recording a CAGR of 8.3%. • CAGRs for NG production was (-) 3.61% for the period 2009-10 to 2018-19. • Net production of NG for consumption increased from 31.58 Billion Cubic Meters(BCM) in 2017-18 to 31.96 BCM in 2018-19 registering a growth of 1.18%. • Import of Natural Gas stood at 28.74 BCM for the year 2018-19 as compared to 27.44 BCM in the previous year recording an annual growth of 4.7%. • Import of natural gas has increased from 12.92 BCM in 2009-10 to 28.69 BCM in 2018-19, recording a CAGR of 8.3%. • Max. use of NG is in fertilizers industry (27.84%) followed by power generation (22.3%) and 17.1% for transport distribution network. • Demand for fertilizer sector is met through domestic gas and imported LNG. • India has four LNG terminals at a combined capacity of 27 million tonnes per annum with Dahej housing the biggest 15 million tonnes terminal. Regional Markets in India Domestic NG Markets - Region-wise (2013) Domestic NG Consumption - Sector-wise (2018-19) India Balance Sheet for Natural Gas Natural Gas Value Chain Domestic NG Market – Regulatory Scenario • “GoI” currently allocates gas produced domestically as per Gas Utilization policy. • To meet the growing demand for gas GoI need to achieve the objective of attracting investments in the upstream and midstream gas sector. • Sending the right price signals which could be achieved by reforms in the power and fertilizer sector (main consumers of gas) to increase their affordability. • Natural gas pricing is moving towards a market determined pricing mechanism and Indian gas market is getting increasingly aligned with the global trends. • Although this gets restrictive when volumes for gas produced locally gets allocated by GoI which impedes the development of a gas market and deters imports as it limits the demand for RLNG. • Setting-up of Natural Gas Spot Exchange in India Domestic NG Chain – Regulatory Scenario NG Pipelines Coal - Introduction • Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. • Coal is composed primarily of carbon, along with variable quantities of other elements such as hydrogen, sulphur, oxygen, and nitrogen. • Coal is a fossil fuel that forms when dead plant matter is converted into lignite, then sub-bituminous coal, after that bituminous coal, and lastly anthracite. • Globally, largest producer of coal is China followed by the US, India, Australia, Indonesia and Russia. • China is also the largest consumer of coal followed by the US and India. • Coal is the most widely used energy source for electricity generation and an essential input for steel production. • Other industries like cement, fertilizer, chemical, paper and thousands of MSME are dependent on coal for their process and energy requirements. • Power, fertiliser and cement sector constituting bulk of demand for non-coking coal while the steel sector accounting for demand for coking coal. Typical Coal Value Chain Types of Coal Coal - Price Influencing Factors
Demand & Policies of Importers Economic Price of NG Growth
Chinese Crude Oil Stock- Prices Price Building Influencing Factors
Policies of Exporters Freight Charges
US $ Seasonal Factors Domestic Coal Market • India has 299 billion tonnes of resources and 123 billion tonnes of proven reserves. • Coal deposits are mainly confined to eastern and south central parts of the country. • Jharkhand, Odisha, Chhattisgarh, West Bengal, Madhya Pradesh, Telangana and Maharashtra account for 98.09% of the total coal reserves in the country. • Bulk of coal production in India is done by the public sector with Coal India accounting to ~80% of the total coal production of the country. • India imports coal primarily from Australia, Indonesia and South Africa. • Post deregulation of the pricing of coal in 2000, coal producing companies were entitled to fix the coal prices on their own and revise the same periodically. • Pricing of coal is based on factors such as the type of coal, its net calorific value, the content level of impurities. • Final customer price includes freight and other charges (royalties and sales tax). • Coal is typically sold under the long-term fuel supply agreements ("FSAs") or the E- Auction scheme. Global Coal Benchmarks Estimated Reserves of Coal in India (31.03.2019) Domestic Coal Production & Consumption • Coal production during the year 2018-19 was 728.72 million tonne(MTs) as compared to 675.40 MTs during 2017-18, registering a growth of 7.89%. • Coal production in India was about 532.04 MTs during 2009-10, which increased to 728.72 MTs during 2018-19 with a CAGR of 3.2%. • Estimated total consumption of raw coal by industry has increased from 587.81 MT during 2009-10 to 968.25 MT during 2018-19 with a CAGR of 5.12%. • Consumption of Raw Coal recorded annual growth of 7.76% during 2018-19 over 2017-18. • Imports of the Coal during 2009-10 to 2018-19 increased at a CAGR of 12.37% whereas the Exports during the corresponding period decreased at(-) 6.06%. Domestic Balance Sheet for Coal Domestic Production of Coal & Lignite Industry-wise Domestic Consumption of Raw Coal Assignments for Students A. Analyze and find if there is a relationship between crude palm oil and crude oil prices.
- Find the correlation in different phases
- Reason out the strengthening or weakening of the correlation
B. Analyze the correlation between Natural Gas and Crude Oil Prices
- Analyze the trends in trade in Natural gas and reason out the strength or the weakness of the correlation
- Explain the gas benchmarks that are emerging especially out of spot markets in ASIA. Thank You
Instant Download Fiscal and Monetary Policies in Developing Countries State Citizenship and Transformation 1st Edition Rashed Al Mahmud Titumir PDF All Chapters
Instant Download Fiscal and Monetary Policies in Developing Countries State Citizenship and Transformation 1st Edition Rashed Al Mahmud Titumir PDF All Chapters
