CAIRN ACE III : Campus finalist submision

1. Current scenario: Import Reliance
1%
22%
7%
44%
22%
4%
2013
Energy Mix
Nuclear BIOMASS
NATURAL GAS COAL
PETROLEUM OTHER RENEWABLE
Domestic
Production
39.78 MT
Domestic
Production:
Net Imports:
184.80 MT 37.86 MT
Deficit:
21.64MT
35%
20%
42%
3%
1990
Domestic
Production:
704.34 MT
Net Imports: Deficit
134.73 MT
155 MT
Domestic
Production
40.68 BCMs
11%
Imports Deficit
56 BCM 1.62 BCM
42%
7%
24%
7%
2035

2. TRENDS:
INCREASING DEMAND AND TRAILING SUPPLY
 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
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.
SHIFTS: Largest source shift
BIOMASS  COAL
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
key oil and gas suppliers with the use of improved technology.

3. 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
State of
sustainable living
and development
without aids or
interaction.
Exploration and
consumption of
native resources
for meeting
the needs.
Energy
Self
Sufficiency
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.

4.  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.
 Market has seen a substantial rise in prices of
daily commodities like petrol, diesel and LPG due
 Lartgoehuenadveyrlerevcieosv(eernietsryhtaasxl,eodcttorolioawndcaisnhpufltotwax).
in E&P sector. Expansion & new investment is
getting difficult with government regulated
rates.
 Fluctuation in government’s market policy. Companies
 The government’s reform to have fewer blocks
mandated to fix oil prices and directed for who
purchases the crude and how much they receive.
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.
 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.

5. BRAZILIAN
ENERGY
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
LIBERALISATION
 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.

6. 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

7. Recommendations from various committees

8. ITS NEVER LATE FOR A CHANGE :
STEPS AHEAD
Investors Providing a don’t tax relaxation want to act on Gas.
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.
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.
Create a pool of technically qualified human
resources to serve the domestic and
international clean energy markets.
Multi-dimensional control of investors over
upstream, midstream and downstream
businesses.
Reduce import duty from 5% to 3% for industrial
sector.
Implementation of open acreage system to
attract foreign participation and utilization of
reserves.
Promote the market for renewable energy resources
& target their use in remote areas and for
decentralized power generation.

9. 2015 2020 2025 2030
₰ Promote the market for renewable energy
₰ Financial support on ‘Enhanced oil Recovery’
₰ Put Market freedom. With limited and pre-defined
resources and target their use in remote areas
and for decentralized power generation.
₰ Implementing Open acreage system.
methods.
₰ Providing basic amenities: Construction,
government interference on production
₰ Centralized permit for sites, with state
Utilize own coal resources so as to buy time
for effective switchover to an alternate energy
economy.
Transport, Machinery to interested foreign
investments at early stages.
₰ Gradually and marketing.
pull back investment from sites over
interference removed. Centrally fixing a single
tax, for upstream stage to downstream stage.
other countries to focus on native resources and
shift from energy security to energy self-sufficient.
₰ 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.
₰ Publicizing Shale gas and Coal-bed methane:
₰ Developing Technology and human
₰ Make solar energy the mainstay for satisfying
₰ Import Duties on industrial brought down from
supporting its early exploration.
resource so as to provide skilled labour to the
foreign directive. HUMAN
5% 3%.
₰ Promoting renewable energy: Centralized
₰ Interstate Levies like on transport, VAT be
allotment of renewable energy mix per state;
providing reduced for tax-efficient relaxation and on similar oil & fuel gas tariffs
for
achieving throughout the the goal nation.
and bypassing it.
RESOURCE
Energy Self-Sufficient
INDIA
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.

10. THANK YOU
THE RADICAL
CONSERVATIVES
TEAM:
(MBM ENGINEERING COLLEGE, JODHPUR.)
MAHIPAL
SINGH
VEDANT
JAIN
SANKET
GANDHI