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Submitted To:- Ms.

Geetanjali Kapoor

Kulkarni Priyanka Uddansinh Sarika Chiplunkar Saurabh Patil Shradha Bhosale Samiksha Surve

Priyanka

C-22 C-24 C-32 C-33 C-37 C-48

Petroleum- Greek: petra (rock) + Latin: oleum (oil) The petroleum industry includes the global processes of exploration, extraction, refining, transporting and marketing petroleum products. The world consumes 30 billion barrels (4.8 km) of oil per year, with developed nations being the largest consumers. Petroleum is vital to many industries, and is of importance to the maintenance of industrial civilization itself, and thus is a critical concern for many nations. Petroleum industry comes under oligopoly

Petroleum industry was established in the 8th century. In the 9th century, oil fields were found in the area around modern Baku, Azerbaijan. Imperial Russia produced 3,500 tons of oil in 1825 and doubled its output by mid-century. At the turn of the 20th century, Imperial Russia's output of oil, almost entirely from the Apsheron Peninsula, accounted for half of the world's production and dominated international markets.

The first large oil refinery opened at Romania in 1856. The first oil drilling in the United States began in 1859, when oil was successfully drilled in Titusville, Pennsylvania.

By 1920s, oil fields had been established in many countries including Canada, Poland, Sweden, the Ukraine, the United States, and Venezuela.
In the early 1930s the Texas Company developed the first mobile steel barges for drilling in the brackish coastal areas of the gulf. After World War II ended, the countries of the Middle East took the lead in oil production from the United States.

Petroleum

industry comes under oligopoly.

An

oligopoly is a market form in which a market or industry is dominated by few number of sellers but large sellers always conscious about the rivals actions.

Ability

to set price Entry and exit Number of firms Long run profits Product differentiation Perfect knowledge Interdependence

Petroleum is a fossil fuel derived from ancient fossilized organic materials. Petroleum includes crude oil Different methods are used to extract crude oil : - Wells are drilled - Natural Lift - Artificial Lift Crude oil contains hundreds of different types of hydrocarbons all mixed together Need to separate the different types of hydrocarbons to have anything useful

Easiest way to separate things is oil refining

Refining - used in petroleum refineries to


transform crude oil into useful products

Petroleum refineries are very large industrial complexes that involve different processing units and auxiliary facilities

Refining processes are largely determined by the


refinery location, desired products and economic considerations

The most common way to separate things into

various components
(called fractions), is to use the differences in boiling temperature

Heat crude oil up, let it vaporize and then condense the vapor

Following are the by-products obtained during the


production process

Petroleum gas - used for heating, cooking, making plastics

Naphtha or Ligroin - intermediate that will be further processed to make gasoline

Gasoline - motor fuel Kerosene - fuel for jet engines and tractors; starting material for making other products

Gas oil or Diesel distillate - used for diesel fuel and


heating oil; starting material for making other products

Lubricating oil - used for motor oil, grease, other


lubricants

Heavy gas or Fuel oil - used for industrial fuel; starting material for making other products

Residuals - coke, asphalt, tar, waxes; starting

material for making other products

cartel is a formal (explicit) agreement among competing firms.


usually occur in an oligopolistic industry. is one of the examples of international cartels

Cartels

OPEC

Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960.
Currently, the Organization has a total of 12 Member Countries. The OPEC Statute distinguishes between the Founder Members and Full Members.

Statute stipulates that any country with a substantial net export of crude petroleum, which has fundamentally similar interests to those of Member Countries, may become a Full Member of the Organization, if accepted by a majority of three-fourths of Full Members, including the concurring votes of all Founder Members.

OPEC's objective is to co-ordinate and unify petroleum policies among Member Countries. The 1960s

The 1970s
The 1980s The 1990s The 2000s

What is Demand? Demand is defined as willingness and desire backed by the ability to buy a particular commodity in a given period of time.
Inelastic Demand Inelastic Demand means, quantity doesn't change much with a change in price.

Demand for petrol is relatively inelastic .


Motorists can reduce their usage of their car, and perhaps drive fewer kilometres, but they can not fill their ''tank'' with water! The demand for petrol in the short run is elastic but in the long run it is inelastic.

Demand in short run is less elastic and vice versa e.g. petroleum. In 1970 and in 1979 our country faced two oil shocks.

As a result prices went up by 25 to 30 per cent but demand decreased by only 5 to 6 per cent.

In Its

mid 1980s Maruti 800 was launched.

single attribute of fuel efficiency was the main advantage . car was so popular that demand for other vehicles fallen by 30 to 40 per cent. while forecasting the demand, producer should be clear about time frame.

The

Hence

Ans:The demand for petrol in the short run is always elastic, when the price rises, the demand falls but, in the long run people get used to it they will have to buy the petrol.

Ans:Demand for the jewellery is elastic . Price for the jewellery depends upon the demand for it while price of the petrol depends upon the availability of the product.

Ans:-

Xerox Machines Internet Services Telephone Services

Ans:Food is the basic necessity needed on a daily basis, hence consumers are ready to pay even If there is a rise in the price, in the short run though clothing is necessity, it is not needed to purchase on a daily basis.

Ans:Shift in the rent elasticity means people are ready to pay higher rent.