Petroleum -

Energy to a
Growing
World
In this session
Global Consumption & Trends
Global Trade & Oil Prices
Global Production & Refining of Crude
Indian Consumption & Trade
Indian Energy Outlook 2025
Role being played by RIL in meeting 2025 targets
Approx 2 Hours
Global Oil Consumption
Global oil demand (2010) 87.9 MMBPD
Global oil demand (2009) 85.0 MMBPD
Global oil demand (2008) 86.1 MMBPD

76% of the Demand growth in 2010 was driven by
non-OECD countries which contributed to a growth of
2.2 MMBPD (5.7% on a YOY basis).
Refining capacity addition
2009 2.6 MMBPD
2010 0.5 MMBPD
Limited capacity addition in 2010, strong demand
growth and wider margins have helped utilization rates
improve during the year.
Oil Consumption
USA 18.810 Brazil 2.522 Mexico 2.084 Spain 1.467 Thailand 940
China 8.324 Germany 2.440 France 1.828 Indonesia 1.268 Singapore 927
Japan 4.443 Saudi Arabia 2.438 Iran 1.691 Netherlands 1.165 Venezuela 723
India 3.110 South Korea 2.185 UK 1.667 Taiwan 971 Egypt 716
Russian Fed 2.740 Canada 2.151 Italy 1.528 Australia 950 Iraq 636
In 000 barrels per day
Oil Consumption Growth
From historical annual growth rate of around 2.5% it has started declining
post 2007 recession
Energy Intensity
Country
(2008)
Consumption
('000
bbl/day)
population
(million)
bbl/year
/capita
Rank by
consumption
Rank by
consumption
/ capita
Saudi Arabia 2.376 25 34,7 8 1
Canada 2.261 33 25,0 9 2
USA 19.498 314 22,7 1 3
South Korea 2.175 48 16,5 10 4
Japan 4.785 127 13,8 3 5
France 1.986 62 11,7 12 6
Germany 2.569 82 11,4 6 7
UK 1.710 61 10,2 14 8
Italy 1.639 60 10,0 15 9
Iran 1.741 74 8,6 13 10
Russia 2.916 140 7,6 5 11
Mexico 2.128 109 7,1 11 12
Brazil 2.485 193 4,7 7 13
China 7.831 1.345 2,1 2 14
India 2.962 1.198 0,9 4 15
Crude Production
Rank
(2006
Prodn)
Producing Nation
Crude Prodn
('000

bbl/day
2009)
Share of
World Prodn
1 Saudi Arabia 9.760 11,99%
2 Russia 9.934 12,21%
3 USA 9.141 11,23%
4 Iran 4.177 5,13%
5 China 3.996 4,91%
6 Canada 3.294 4,05%
7 Mexico 3.001 3,69%
8 UAE 2.795 3,43%
9 Kuwait 2.496 3,07%
10 Venezuela 2.471 3,04%
11 Norway 2.350 2,89%
12 Brazil 2.577 3,17%
13 Iraq 2.400 2,95%
14 Algeria 2.126 2,61%
Rank
(2006
Prodn)
Producing Nation
Crude Prodn
('000

bbl/day
2009)
Share of
World Prodn
15
Nigeria 2.211 2,72%
16
Angola 1.948 2,39%
17
Libya 1.789 2,20%
18
UK 1.422 1,75%
19
Kazakhstan 1.540 1,89%
20
Qatar 1.213 1,49%
21
Indonesia 1.023 1,26%
22
India 877 1,08%
23
Azerbaijan 1.012 1,24%
24
Argentina 794 0,98%
25
Oman 816 1,00%
26
Malaysia 693 0,85%
27
Egypt 678 0,83%
(Not including Indias share in overseas assets in Sudan, Colombia, Venezuela, Russia,
Vietnam, Syria & Brazil which produce approx 19.85 MMT per annum or 400,000 bpd)

India Oil & Gas Reserves (2009-10)
Oil Reserves 1,201 MMT
Natural Gas Reserves 1,437 BCM

(Not including Indias share in reserves in
overseas assets in Sudan, Colombia, Venezuela,
Russia, Vietnam, Syria & Brazil)

Vis--vis current consumption of
Oil* 160.03 MMT
Natural Gas 46.50 BCM
World Oil Trade
Rank
(2009)
Country
Exports ('000
bbl/day)
1 Saudi Arabia 7,322
2 Russia 7,194
3 Iran 2,486
4 UAE 2,303
5 Norway 2,132
6 Kuwait 2,124
7 Nigeria 1,939
8 Angola 1,878
9 Algeria 1,767
10 Iraq 1,764
11 Venezuela 1,748
12 Libya 1,525
13 Kazakhstan 1,299
14 Canada 1,168
15 Qatar 1,066
Rank
(2009)
Country
Imports ('000
bbl/day)
1
USA
9,631
2
China
4,328
3
Japan
4,235
4
Germany
2,323
5
India
2,233
6
South Korea
2,139
7
France
1,749
8
United Kingdom
1,588
9
Spain
1,439
10
Italy
1,381
11
Netherlands
973
12
Taiwan
944
13
Singapore
916
14
Turkey
650
15
Belgium
597
Japan, Germany, South Korea, France, Italy, Spain, Netherlands & Turkey have large
consumptions but produce < 10% of oil consumed
Trends in future oil demand
Changing product specifications for Sulphur (parts per million)
Country
2010 2015 2020
Gasoline
US 30 30 30
EU 10 10 10
Brazil <1000 <1000 10
China 150 - 50 150 - 10 50 - 10
India 500 - 50 50 - 10 50 - 10
Gasoil
US 15 15 15
EU 10 10 10
Brazil 500 - 50 50 10
China 350 - 50 350 - 10 50 - 10
India 500 - 50 50 - 10 50 - 10
Russia 2000 - 150 50 - 10 10
Factors affecting Oil Prices
Installed Capacity
Weather
Stability of regimes in OPEC countries
Estimates of the future
Planned shutdowns of refineries
Futures & Options in Oil Trade

And Demand & Supply
Provides energy information and benchmark price
assessments in the physical energy markets. Platts was
founded in Cleveland, Ohio in 1909 by Warren C. Platt
(1883-1963) to provide "reliable market-based price
information" on the oil industry.
From an original focus on the oil industry, Platts expanded
to include metals, shipping and other energy related
markets - coal, natural gas, electricity, nuclear power,
petrochemicals, renewables and emissions.
Platts is a division of The McGraw-Hill Group, an
information provider and sister to such brands as Standard
& Poor's, J.D. Power & Associates, Aviation Week, and
McGraw-Hill Construction.
It was acquired by McGraw-Hill in 1953.
Oil Tankers
The sum of the weights of cargo, fuel, fresh water, ballast water, provisions, passengers,
and crew.

The term specifies a ship's maximum permissible deadweight, the DWT when
the ship is fully loaded so that its Plimsoll Line is at the point of submersion.
Class Purpose Length Beam Draft DWT
Seawaymax General Purpose Tanker 226 m 24 m 7.92 m 10-25,000
Panamax Medium Range Tanker 228 m 32 m 12.6 m 25-45,000
Aframax Long Range I Tanker (LR1) 253 m 44 m 11.6 m 45-80,000
Suezmax Long Range 2 Tanker (LR2) No bar 50 m 16.0 m 120-200,000
Malaccamax
Very Large Crude Carrier
(VLCC)
470 m 60 m 20.0 m 160-320,000
ULCC Ultra Large Crude Carrier No bar No bar No bar 320-550,000
Oil Tankers
> 10000 DWT 4025 Nos
of which 2,582 are Double Hulled
of which 70% were built in Japan, China or South
Korea
Greece (733), Japan (394) & USA (311) are the
largest tanker owners
Flag States Panama (592 Nos) Liberia (520
Nos) Marshall Islands (323 Nos)
Greece(233 Nos) Singapore (274
Nos) & Bahamas (215 Nos)
The India Story
Crude Production 877
Oil Consumption 3,110
HSD 974
LPG (OE) 417
MS 233
Kerosene 201
ATF 100
Any change in International Oil Prices or US $ Exchange Rate has a direct
impact on our economy
In 000 barrels per day
India Oil Trade Story
IMPORT/EXPORT 2010-11(P)
IMPORTS
CRUDE 163.594
PRODUCT
LPG 4.484
NAPHTHA 2.063
PETROL 1.702
ATF -
KEROSENE 1.366
DIESEL 1.996
LUBES 1.291
FUEL OIL 989
BITUMEN 98
OTHERS 3.347
TOTAL 17.337
TOTAL IMPORTS 180.931
IMPORT/EXPORT 2010-11(P)
EXPORTS
LPG 158
NAPHTHA 10.667
PETROL 13.581
ATF 4.478
KEROSENE 34
DIESEL 20.354
LDO 126
LUBES 8
FUEL OIL 6.734
BITUMEN 21
OTHERS 2.973
TOTAL EXPORT 59.133
NET IMPORT 121.798
Net Product Export 41.796
In 000 tonnes per year
Refining
Nelsons Complexity Index
The Nelson complexity index was developed by Wilbur
L. Nelson in 1960-61.
The Nelson complexity index indicates the investment
intensity (cost index) of the refinery & its potential for
value addition.
The higher the index number, the greater the cost of
the refinery and the higher the value of its products.
Jamnagar Refinery Complex is one of the Most
Complex refineries in the world with complexity of
14.
Average Complexity of Refineries in USA is 9.5 &
Europe is 6.5.
World Refining Capacity (2009)
Continent No of Refineries Capacity Average Thruput
Africa 42 3.295.150 78.456
Asia 184 27.492.610 149.416
Europe 155 22.349.900 144.193
N America 197 25.368.900 128.776
S America 57 5.528.365 96.989
Oceania 9 785.290 87.254
644 84.820.215 131.708
India 21 3.902.600 185.838
% share 3,26% 4,60% 141%
In 000 barrels per day
World Refining Capacity (2009)
Capacity No of Refineries Total Production Average
> 500,000 bpd 9 6.186.000 687.333
> 400,000 bpd 15 6.426.800 428.453
> 300,000 bpd 32 10.749.700 335.928
> 200,000 bpd 96 22.712.000 236.583
> 100,000 bpd 194 26.840.400 138.353
> 50,000 bpd 116 8.372.650 72.178
> 200,000 bpd 57 2.061.665 36.170
> 200,000 bpd 80 1.255.740 15.697
> 200,000 bpd 45 215.260 4.784
Total 644 84.820.215 131.708
Jamnagar at 1,240,000 bpd is the largest. Next is Ulsan Refinery of S K Energy of South
Korea at 850,000 bpd. The smallest is Beihai Refinery of Sinpec of China at 1,200 bpd
Capacity Utilization rates (FY 2011)
North America 83.8% (LY 81.6%)
Europe 77.8% (LY 76.6%)
Asia 83.9% (LY 83.5%)
With higher global GDP forecasts and higher
global oil demand forecasts coupled with
minor capacity additions, refining utilization
rates are expected to improve over the next
few years.
India Refining Capacity
Total Installed 193.5 MMT (3.660 mil
bblsd)
of which
PSU refineries 122.9 MMT
JVC / Pvt refineries 70.6 MMT
of which
RIL Jamnagar 62.0 MMT ( 1.240 mil
bblsd)

32% of Refinery Capacity & 88% of Pvt. Sector capacity
In FY 2010-11 RIL operated @ 107.4% cap utilization to
produce 66.6 MMT agst. 102 % by PSU refineries
Refinery Capital Cost
OECD * $ 13,000 / bbl / day (1999)
OECD * $ 19,000 / bbl / day (2008)
Jamnagar I $ 6,000 / bbl / day (1999)
(@ 660,000 bbld a saving of $ 4.62 Billion)
Jamnagar II $ 10,000 / bbl / day (2008)
(@ 580,000 bbld a saving of $ 5.22 Billion)**
Considering OECD complexity (average 7.8 Vs 13 of
Jamnagar I & II, savings would be much higher
* Organization for Economic Co-operation and Development of 34 countries founded in
1961 to stimulate economic progress and world trade. It is a forum of countries committed to
Democracy and the Market Economy
** In first year itself increased to over 700,000 bpd by de-bottlenecking
Benefit of High Complexity for RIL
Ability to process inferior quality crude or heavy sour crudes.
The Jamnagar Refinery generally processes crudes which are
0.7wt% Sulphur higher compared to Indian peers.
Ability to have a superior refinery product slate comprising of
high % of LPG, light distillates and middle distillates. The
Jamnagar Refinery produces no fuel oil which is unmatched
by the Indian peers.
Ability to make high quality refinery products such as Bharat
3 gasoline or diesel. For example the Jamnagar Refinery can
make Bharat IV grade fuels, unmatched by the Indian peers.
Jamnagar II is the only Indian Refinery that produces MS &
HSD grades suitable for sophisticated European & US
markets.
Landmarks of Jamnagar I & II
Besides cost advantage major achievement
includes commissioning Refinery I in approx 60
months & Refinery II in 36 months, both Global
records for refineries of its class when
commissioned. Project consultant Bechtel had
estimated 8 years & 6 years for the projects.
There is a 7 km long Jetty where simultaneously 4
VLCCs can be berthed.
Combined storage in tank farms is app. 4 MMT.

Jamnagar
in
pictures
Future Plans for Jamnagar
There are plans in the pipeline to process High
Pour Point crude oil extracted at Barmer,
Rajasthan in the near future. This would
require an electrically heated pipeline to be
set up from Barmer to Jamnagar.

Gross Refining Margins
Gross Refining Margins ($/bbl) FY 2010-11 FY 2009-10
RIL 8.4 6.6
Regional benchmarks
Singapore (Dubai) 5.2 3.5
US Gulf Coast (Brent) 1.1 2.7
US Gulf Coast (WTI) 6.4 3.2
Rotterdam (Brent) 3.6 3.1
In FY 2011-12 HI the Gross Refining Margins were approx $10.15 per barrel
The Reliance Saga
Turnover 258,651 Cr 164,479 Cr
PAT 20,286 Cr 11,364 Cr
Equity 3,272 Cr 3,274 Cr
Reserves & Surplus 148,267 Cr
Total Fixed Assets 284,719 Cr
No of Employees 22,661
EPS 62 34.7
Debt : Equity ratio 0.44
Production 66.6 MMT 34.1 MMT
Capacity Utilization 107.4 % 110 %
(FY 2010-11) H1 (FY 2011-12)
In 2011-12 H1 RIL has commenced production at its Shale Gas JVCs with Chevron &
Pioneer in the United States.
The Reliance Export Story

2009-10 $ 24.5 billion 32.8 MMT
2010-11 $ 32.9 billion 38.6 MMT
2011-12 H1 $ 20.8 billion 20.5 MMT app.
The Reliance Export Story
On Long term contracts or on Spot rates.
Considering Large Holding Capacity, Financial
Muscle, High GRMs and Hedged Crude Supply,
Spot rates are preferred over long term
contracts.
Rates are basis Platts Singapore / Dubai.
Insistence on Fully Secured Supplies through
reputed global bankers.
HSD Consumption
USA 4.196 India 974 Canada 566
China 2.551 Spain 756 Iran 555
Japan 1.005 Brazil 756
Saudi
Arabia
532
Germany 997 Italy 658
Russian
Fed.
508
France 981 UK 580 Indonesia 469
Kerosene Consumption
CONSUMPTION OF PETROLEUM PRODUCTS
('000 MT)
PRODUCT
2006-07 2007-08 2008-09 2009-10 2010-11
QTY. % GR. QTY. %GR. QTY. %GR. QTY. % GR. QTY. % GR.
SKO

9.505
-0,4

9.365
-1,5

9.303
-0,7

9.304
0

8.928
-4,0
TOTAL

120.749
6,7

128.946
6,8

133.599
3,6

137.808
3,2 141.785 2,9
Decline in Kerosene consumption mainly on account of
reduced demand for Lighting & Cooking due to improved
Rural Electrification & Availability of LPG.
Improved availability of Natural Gas.
Customer awareness of Q & Q also led to drop in misuse of
Kerosene for adulteration of HSD.
LPG Consumption
CONSUMPTION OF PETROLEUM PRODUCTS
('000 MT)
PRODUCT
2006-07 2007-08 2008-09 2009-10 2010-11
QTY. % GR. QTY. %GR. QTY. %GR. QTY. % GR. QTY. % GR.
LPG

10.849
3,8

12.010
10,7

12.191
1,5

13.135
7,7 14.328 9,1
TOTAL

120.749
6,7

128.946
6,8

133.599
3,6

137.808
3,2 141.785 2,9
LPG consumption increasing due to greater aspirational
demand from semi-urban and rural areas. The number of LPG
connections as on 114.95 million as on April 1, 2010 is served
by 9,386 distributors.
Use of Auto LPG is also being promoted as a vehicle fuel.
Over 75% of the consumption is produced in India.
MS Consumption
USA 9.286 Russian Fed. 672 Australia 331 India 233
China 1.286 Germany 493 Brazil 331 France 225
Japan 1.024 Ukraine 410 Indonesia 322 Malaysia 201
Mexico 745 Iran 403 Italy 288 South Africa 195
Canada 725 Saudi Arabia 347 Venezuela 269 Taiwan 174
ATF Consumption
USA 1.622 Germany 190 India 100
UK 273 France 152 Hong Kong 100
China 243 Spain 123 Brazil 95
Russian Fed. 232 Canada 120 South Korea 95
Japan 228 Australia 101 Italy 91
Renewable Energy
Globally share of RE is around 16% in the Energy
pie.
10% traditional bio mass mainly for heating.
Around 3.5% in shape of hydro-electricity.
Around 2.5% in modern renewable sources like
Solar, Wind, Geo-thermal & Bio-Fuels.

Large Capital Cost & Financial Viability of the
projects are the major deterrents.
Renewable Energy Bio Fuels
One acre of Corn produces Ethanol equal to
10 barrels of oil.
India would need approx. 23,300 bbls per day
of ethanol for a 10% blending of MS.
Approx 850,000 acres (3,500 sq km) of Corn
Cultivation at stable rates can provide
adequate Ethanol. This would need to
increase by approx 10-12% per year to
account for growth.
Demand Projections
Demand Projections
* Assuming that by 2012, adequate gas is available through imports and domestic sources.
Projected Shipping traffic
Source : Ministry of Shipping & Surface Transports report on TRAFFIC PROJECTIONS FOR 2013-14 BY
MAJOR COMMODITY GROUP FOR ALL THE PORTS
India - Hydrocarbons vision 2025
Refining & Marketing
Objectives
a) To maintain around 90% self-sufficiency of middle distillates in the
sector with an appropriate mix of national oil companies, foreign
players and private Indian players.
b) To develop a globally competitive industry.
c) To have a free market and healthy competition amongst players.
d) To develop appropriate infrastructure such as ports, pipelines etc.
for an efficient hydrocarbons industry.
e) To improve customer services through better retailing practices.
f) To make available un-adulterated quality products at reasonable
prices.
g) To achieve free pricing for products while continuing subsidized
prices for some products in certain remote areas, Which are to
be identified and reviewed from time to time.

Private Sectors role
To have a free market and healthy competition
amongst players
Improved efficiency of processes
State of the art technology
Enhanced customer expectation
Innovation thru competitive pressure
Invest in the future thru improved financials
Reduced exploitation of manpower
Private Sectors role
To improve customer services through better
retailing practices
System generated bill for each transaction means
over-charging not possible
Offsite money transactions thru TC cards leads to
less working capital and increased security
Reduced transaction time since the DSM who
fuels collects cash
High speed dispensers lead to shorter queues
Branding & Marketing
Standard signs at all ROs leads to familiarity
for regular customers
Staff in company uniform means no
unauthorized person can rob customer of cash
Cash less fuelling means increased customer
safety since reduced risk of cash theft
Technology-enabled Q&Q assurance systems
Periodic promotions and timely payout to all
Branding & Marketing
Differentiation leads to stronger bonding with
customers leading to greater RO output
Centrally controlled price changes means no
short-charging of customers a 30 minute gap
between upward price revision on EPS &
dispenser means customer gets a chance to
buy at lower price
Adherence to SOPs leads to greater customer
satisfaction

Upcoming Refineries
World
Akdeniz Refinery (Petrol Ofisi Turkey 212,000 bpd)
Dou Akdeniz Petrol Refinery (alk Holding Turkey 212,000 bpd)
Star Refinery (Petkim Turkey 150,000 bpd)
New Alpha Refinery (Alpha ref Co. Ghana 200,000 bpd)
Lobito Refinery (NOC Angola 200,000 bpd)
Al Zour Refinery (KPC Kuwait 615,000 bpd)
Fuijan Refinery (Sinopec, Exxonmobil and Saudi Aramco - China 240,000 bpd)
Jazan Refinery (MinPet Saudi Arabia 400,000 bpd)
India
Bhatinda Refinery (HPCL Mittal JVC 280,000 bpd)
Bina Refinery (BPCL 116,000 bpd)
Haldia Refinery (IOCL 300,000 bpd)
Cuddalore Refinery (CPCL 300,000 bpd)
Baroda Refinery Expansion (from 300,000 to 360,000 bpd)
Essar Vadinar Refinery Expansion (Essar from 180,000 to 300,000 bpd)
.. And many more