Saturday 22 February 2014

Reality of Oil and Gas


Reality of Oil and Gas
Oil and Gas are the heroes of Indian economy. Absolute imbalance is created when there is an upsurge in the price of Oil and Gas. Even contribute important role in our everyday lives. Imagine one day without Oil and Gas. From commuting to offices to taking your child to a play park to eating daily meal seems to be a challenge.
The Government of India has enacted various policies, such as the New Exploration Licensing Policy (NELP) and Coal Bed Methane (CBM) policy, to encourage investments across the industry's value chain. 100 per cent foreign direct investment (FDI) is allowed in the exploration and production (E&P) projects/ companies; and 49 per cent is allowed in refining.
Want to bring to your attention that there are are some companies exiting India as our Government expect them to run pillar to posts to take approvals.
COMPANIES EXITING / ON THE VERGE OF EXITING INDIA

FY,2012 accounted 81 % of imports accounted country’s total oil demand. One hand we have companies exiting because of set of procedure.
FY12, FY 13, FY 14 oil production is / will be 0.8 mbpd, 1.0 mbpd, 1.0 mbpd respectively. Where as imports were / will be 3.5 mbpd, 2.5 mbpd, 2,7 mbpd ( mbpd- million barrels per day).
FY 12, FY 13, FY 14 gas consumption was / is 46 bcm, 109 bcm,137 bcm, where as our gas reserves are 1,330 bcm in FY 12, FY 13 and FY 14. (BCM-billion cubic meteres),Therefore Govt subsidizing on Gas should not come as surprise.
Gas imports in FY 12, FY 13 and FY 14 were 13 bcm, 23 bcm and 32 bcm respectively. If we have gas reserves then what is the need of Gas imports ?
Should Govt get in manufacturing of automobiles which uses CNG. This can also generate lot of employment(inculsivity), also non-renewable energy is preserved for generations to use.
As the proven gas reserves are too high,CNG( Compressed Natural Gas) is made by compressing natural gas ( mainly composed of Methane, CH4). It produces fewer undesirable gas then other fuels which is safer for enviroment.
Why do we have so few CNG stations in that case that’s a question to ask ? Or Are the policies too stringent ?
Reference:
http://www.ibef.org/download/oil-and-gas-august-2013.pdf
http://www.ibef.org/artdisplay.aspx?cat_id=803&art_id=35003
http://businesstoday.intoday.in/story/global-oil-exploration-companies-looking-to-exit-india/1/189226.html




Sunday 2 February 2014

Review on IIM-A, Day to Day Economics( Business Book)

Review on IIM-A, Day to Day Economics( Business Book)
Portrays on day to day business understanding on various institutions like RBI, WTO, and intervention of Gov. of India in economic activities. Explains comprehensively about phenomena of Boom and Bust in market, inflation, Crowding-out, Animal spirit in economics, taxes, stock markets, global recessions etc. Draws analogy between Social-Political events and economy like Boston-Tea party. Steps taken by Government to control inflation, Over-heating of economy. Keeps engrossed by illustrating how inflation is good for an economy.
Very pleasingly justifies as a Rookies guide to day to day economics