presentation to n p t i o il & gas source nov 03 1

Sources of Oil & Gas

by

Rohit Verma,NPTI,Faridabad, India

RELEVANCE OF THE TOPIC FOR POWER SECTOR

• Alternate fuels for thermal power generation:– Solid Fuels: Coal – Liquid Fuels: Crude Oil, Naphtha,

Fuel Oil– Gaseous Fuels: NG or LNG

(Bio-gas insignificant)

• With new indigenous gas finds and growing LNG infrastructure, Gas is expected to emerge as a competing fuel

Power Generation Tariff from Competing Fuels

2.73.2

0.5 (Pithead)1.0 (1000 kms)

2.2Domestic Coal (Grassroots Plants)

0.91.4

0.5 (Pithead)1.0 (1000 kms)

0.40Domestic Coal (Old Plants)

4.23.01.2Naphtha

2.81.61.2LNG

2.81.61.2Deregulated Domestic NG (New CCGT)

2.21.01.2Subsidised Domestic NG (New CCGT)

1.41.00.4Subsidised Domestic NG (Old CCGT)

Total, Rs/kWh

Variable, Rs/kWh

Fixed, Rs/kWh

Fuel Type

Primary Energy

• Coal

• Petroleum Oil

• Natural Gas

• Nuclear Energy

• Hydel and Other Renewable

Energy Units and Conversion

One tonne of oil equivalent

equals approximately :

Heat Units - 10 million k-cal

Solid Fuels - 1.5 tonnes of hard coal

- 3 tonnes of lignite

Natural Gas - 1111 Cu. M

Electricity - 12 Mwh

World Energy Consumption Past Trend

01000

20003000

400050006000

70008000

900010000

1970 1980 1990 2000 2002Year

mtoemtoe

Energy Consumption in IndiaPast Trend

0

50

100

150

200

250

300

1990 1993 1997 2000Year

mtoemtoe

Indian Energy Scene

Per capita energy consumption in India is 294 kg of oil equivalent as against world average of 1500 kg in 2000

World Energy Mix-2000

Natural Gas24.3%

Nuclear6.5%

Hydro-electric+other

8.0%

Coal25.5%

Oil37.5%

Primary Energy Consumption Trend

Primary Energy Regional Consumption Pattern 2000

World Oil Reserves

R/P Ratio:39.9 years

Total Reserves:1046.4 thousandmillion barrels

1 barrel= 0.136 MT

World Oil Reserves-Trends

World Oil Production

World Oil R/P Ratio

World Oil Consumption

Per Capita Oil Consumption

Major Petroleum Products & Uses

LPG : Domestic Gas / Auto Fuel

Naphtha : Fertilizer/Petrochemical/Power

Gasoline : Auto Fuel

ATF/

Kerosene : Jet Fuel/Domestic

Diesel : Auto Fuel/Power

Fuel Oil : Fertilizer/Power/Other Industries

Oil Consumption Mix

Oil Consumption Mix-(Cont..)

World Oil Trade

World Natural Gas Reserves

R/P ratio: 61 years

Total Reserves :150.19TCM

World Natural Gas Reserve-Trends

World Natural Gas Production

Natural Gas -R/P Ratio

Natural Gas Consumption

Natural Gas Per Capita Consumption

Natural Gas Trade

• Cross Border Pipeline

• Liquefied Natural Gas (LNG)

LNG

• Natural gas liquefied at (-) 160 0 C at atmospheric pressure

• Facilitate transportation in Cryogenic Tankers across sea

• LNG volume is 1/600 of Natural Gas• LNG to be regasified in receiving terminal• 1 MMT of LNG ~ 4 MMSCMD of NG• 1 MMTPA of LNG can sustain a power

plant of 1000 MW

Natural Gas Trade Movements

Natural Gas Price

0

1

2

3

4

5

6 LNG

NG(EU)

NG(UK)

NG(US)

CrudeOil

USD/million btu

World Energy Mix - Forecast 2020

39%

28%

20%

5% 8%

Oil NG Coal Nuclear Others

World Energy Consumption by Energy Source, 1970-2025

World Energy Forecast

• Natural Gas is expected to be the fastest growing component

• Consumption of Natural gas will nearly double from 84 tcf in 1999 to 162 tcf in 2020

• Growth in Natural Gas consumption will be @3.2% globally

World Energy Forecast

• Growth in Natural Gas Consumption in

developing countries will be higher

than industrialized countries

• Natural gas consumption for electricity

generation will be more rapid than

other fuel

World Energy Forecast

Consumption growth per year of various fuel

for power generation in Industrialized

countries

Natural Gas 4%

Oil - 0.1%

Coal 0.9 %

World Energy Forecast

%Share on Natural Gas in Power Generation

1999 2020

Industrialised

Countries 14 24

Developing

Countries 13 21

World Energy Forecast

Reasons for increased share of NG for Power Generation

• Cleaner Fuel• Higher Efficiency• Fuel Diversification• Energy Security• Growth in Natural gas trade• Competitive Price

Indian Energy Scene

Oil& Gas

NPTI/MBA 40

Energy Structure in Power Generation-2005(%)

1 10

56

25

3 5Natural Gas

Oil

Coal

Hydro

Nuclear Pow er

Renew able

Energy Security rests on two principals. The first, to use the least amount of energy to provide services and cut down energy losses. The second to all secure access to all sources of energy including coal, oil and gas supplies worldwide, till the end of the fossil fuel era which is fast approaching. Simultaneously we should access technologies to provide a diverse supply of reliable, affordable and envirnmentally sustainable energy.

Dr. A. P. J. Kalam

Energy Mix In India -2000

Natural Gas7.6%

Nuclear1.4%

Hydro-electric+other

8.0%

Coal55.5%

Oil33.2%

Crude Oil Production in India

0.25 0.39

10.51

33.02 35.1731.95 32.46 33.04

0

5

10

15

20

25

30

35

40

1948 1956 1980 1990 1995 2000 2001 2002

MM

T

Year

Crude Oil Consumption in India

0.25 4.8

25.84

51.77 58.74

85.96

103.44107.27 112.56

0

20

40

60

80

100

120

19

48

19

57

19

80

19

90

19

95

19

99

-00

20

01

-0-0

1

20

01

-02

20

02

-03

MM

T

Year

Demand & Domestic Availability of Crude Oil

0

20

40

60

80

100

120

140

Production

DemandMM

T

Self Reliance in Crude Oil Availability

0

10

20

30

40

50

60

7019

89-9

0

1991

-92

1993

-94

1995

-96

1997

-98

1999

-00

2001

-02

%S

elf

Rel

ian

ce

Natural Gas Reserves in India

63.1562.4887.67

184.88

351.91

692 675 648760 763 751

0

100

200

300

400

500

600

700

800

1966 1970 1975 1976 1980 97-98

98-99

99-00

00-01

2001-02

2002-03

BC

M

Natural Gas Production Profile

0

5

10

15

20

25

30

35

1970

-71

1975

-76

1980

-81

1985

-86

1990

-91

1995

-96

2000

-01

2001

-02

2002

-03

YEAR

BC

M

Gas Pipeline Infrastructure in India

Total Pipeline Length :4014 KmH-B-J : 2688 Km

H-B-J

India Hydrocarbon Vision 2025

• Hon’ble Prime Minister of India announced in Petrotech,1999 setting up a Group for working out a specific framework for developing “India Hydrocarbon Vision 2025”

• The Group chaired by Hon’ble Union Minister of Finance has since prepared the document which lays down the framework which would guide the policies relating to the Hydrocarbon sector for the next 25 years

India Hydrocarbon Vision 2025

Focus• Energy Security• Use of Alternative Fuel• Optimal and sustainable mix of energy

sources• Adequate quantity of economically

priced clean and green fuel

India Hydrocarbon Vision 2025

25%

20%50%

2% 3%

Oil NG Coal Hydel Nuclear

Primary Energy Mix in 2025

India Hydrocarbon Vision 2025

0

50

100

150

200

250

300

350

2001-02 2006-07 2011-12 2024-25

Power Fertilizer Others

Natural Gas Consumption Pattern

India Hydrocarbon Vision 2025

Natural Gas Supply/Demand

0

50

100

150

200

250

300

350

2002 2007 2012 2025

Gap

Supply

Dem

and

MM

SC

MD

India Hydrocarbon Vision 2025

Petroleum Products Supply/Demand(MMT)Year Demand Estd. Refning Estd. Crude

Capacity Requirement

2006-07 148 167 173

2011-12 195 184 190

2024-25 368 358 364

Sourcing Option for LNG/NG in India

Iran

Myanmar offshore

M.E

SEA, Australia,PNG

NG PPL

LNG

Coal Bed Methane

Gondwana Coal

Eastern Raniganj W.B 1.50 TCF

Bokaro Jharkhand 1.59 ,,

Near Karanpura ,, 2.18 ,,

Eastern Sohagpur MP 1.73 ,,

Weatern Sohagpur ,, 1.00 ,,

Satpura ,, 1.00 ,,

Tertiary Lignite

North Berner Rajsathan 0.0178 ,,

Thank You