Oil Crisis

AN ARTICLE ON:

“IMPACT OF RISE IN CRUDE OIL PRICES ON THE INDIAN ECONOMY”

SUBMITTED BY:

AMITKUMAR RAJANI

Master of Management Studies (MMS 2010-12)

Prin. L.N. Welingkar Institute of Management Development & Research, Matunga

MOBILE:

9881273855

E-MAIL:

amit.rajani1988@gmail.com

"IMPACT OF RISE IN CRUDE OIL PRICES ON

RUDE

THE INDIAN ECONOMY”

CONOMY

CRUDE OIL PRICE TRENDS 2000-2010 (US$ Per Barrel)

SOURCE: National Energy Board, Canada

INDIA’S CRUDE OIL IMPORTS (in Rs. Crores)

400,000

348,288

350,000

300,000

219,029

250,000

272,699

248,226

200,000

117,003

150,000

171,702

100,000

50,000

83,528

0

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10*

SOURCE: Annual Report 2009-10, Ministry Of Petroleum & Gas

10,

*: Up to December 2009

INDIA’S CRUDE OIL REQUIREMENTS

India needs to sustain an 8% to

India

10% economic growth rate, over the

next 25 years, if it is to eradicate

poverty and meet its human

development goals.

With high economic growth rates

and over 15 percent of the world’s

population, India is a significant

consumer of energy resources. Despite

the global financial crisis, India’s

energy demand continues to rise.

But India faces formidable

challenges in meeting its energy needs

ing

and in providing adequate energy of

desired quality in various forms in a

sustainable

manner

and

at

competitive prices.

Oil meets about 24% of India’s

commercial energy requirements [1]. In

2009, India with a consumption of 3

2009,

million barrels per day was the 4th

rels

largest oil consumer in the world after

the United States, China, and Japan [2].

India’s proven reserves of crude oil

roven

and oil production have not witnessed

any significant improvement in the

last few decades. As a result, India

As

largely relies on imported crude oil to

gely

meet its energy requirements.

In 2009, India was the 6th largest

In

net importer of oil in the world,

importing nearly...