PRESENTED BY: SUBMITTED TO:

DR. BODHRAJ
GAUTAM AHUJA
CHEMICAL,4TH YR,1207535
 INTRODUCTION
 World Petroleum Industry is regarded as one of the largest in terms of capacity and at the
same time one of the most sophisticated ones in the whole world.

 The largest volume products of the industry are fuel oil and gasoline (petrol).

 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 is also the raw material for many chemical products, including pharmaceuticals, solvents,
fertilizers, pesticides, and plastics.

 Oil accounts for a large percentage of the world’s energy consumption, ranging from a low of 32%
for Europe and Asia, up to a high of 53% for the Middle East.

 The world consumes 35 billion barrels  of oil per year, with developed nations being the largest
consumers.

 The United States consumed 25% of the oil produced in 2007.

 The production, distribution, refining and retailing of petroleum taken as a whole represents the
world's largest industry in terms of dollar value.

 Governments such as the United States govt, Indian govt provide a heavy public subsidy to
petroleum companies, with major tax breaks at virtually every stage of oil exploration and extraction,
including for the costs of oil field leases and drilling equipment.
 PROCESS DIVISION
There are some core areas of World Petroleum Industry which are very
important locationally as well as strategically. The processes that are involved
in the petroleum industry all over the world are given in the following steps:-

 EXPLORATION & EXTRACTION -Drilling at the site of petroleum for

making well so that the crude oil could be extracted. Storing of the extracted
crude petroleum in a secured place.

 REFINING - Processing of the crude oil needs to be done in the processing

units or refineries for converting it into the usable fuel form along with the
other important derivative products like lubricants, asphalt etc.

 TRANSPORTATION – Transporting crude oil to refineries & then the refined

petroleum products by pipelines, tankers etc.

 MARKETING – Effective pricing & marketing of the products.

Refining is the most important part of the World Petroleum Industry which in

fact is responsible in extracting the usable petroleum out of its crude form. The
largest volume products of the industry are fuel oil and gasoline (petrol).
 COMPANY CLASSIFICATION
Oil companies are used to be classified by sales as :-

1)Supermajors (BP, Chevron, Exxon Mobil, Shell).
2)Majors and 
3)Independents or jobbers. 

In recent years however, National Oil Companies (NOC, as opposed to

IOC, International Oil Companies) have come to control the rights over the
largest oil reserves; by this measure the top ten companies all are NOC.
The following table shows the five largest oil companies ranked by reserves:-

RANK COMPANY WORLDWIDE LIQUID WORLDWIDE TOTAL RESERVES

RESERVES (MILLION NATURAL GAS IN OIL EQUIVALENT
BARRELS) RESERVES BARRELS, (MILLION
BARRELS)
(BILLION ft3)
1 NATIONAL 137620 1045670 316367
IRANIAN OIL
COMPANY
2 SAUDI 259900 263000 304857
ARABIAN OIL
COMPANY
3 QATAR 25410 899325 179141
GENERAL
PETROLEUM
CORPORATION
4 IRAQ 115000 119940 135503
NATIONAL OIL
COMPANY

5 PETROLEOS de 99377 175970 129457

VENEZUELA
 OPEC
 HISTORY- The Organization of the Petroleum Exporting Countries (OPEC) is
a permanent, intergovernmental Organization, created at the Baghdad Conference
on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The
five Founding Members were later joined by nine other Members: Qatar (1961);
Indonesia (1962) – (suspended its membership from January 2009); Socialist
Peoples Libyan Arab Jamahiriya (1962); United Arab Emirates (1967); Algeria
(1969); Nigeria (1971); Ecuador (1973) –(suspended its membership from
December 1992-October 2007); Angola (2007) and Gabon (1975–1994). OPEC had
its headquarters in Geneva, Switzerland, in the first five years of its existence.
This was moved to Vienna, Austria, on September 1, 1965.

 MISSION- The mission of the Organization of the Petroleum Exporting

Countries (OPEC) is to coordinate and unify the petroleum policies of its
Member Countries and ensure the stabilization of oil markets in order to
secure an efficient, economic and regular supply of petroleum to consumers, a
steady income to producers and a fair return on capital for those investing in
the petroleum industry.
OPEC countries control close to 70 percent of the
world's proven oil reserves .
WORLD ENERGY CONSUMPTION
WORLD OIL RESERVES BY
REGION
CRUDE OIL PRICES
 FUTURE OF DWINDLING
RESERVES
 The consumption of resources is generally growing exponentially, and we
would like to have an idea how long resources will last.
 There is a need to accelerate the development of alternative energy fuel
resources in order to ensure energy security and reduce emissions.
 The age of cheap oil has now ended as demand starts to outstrip supply as we
head towards the middle of the decade.
 The current oil reserve estimates should be downgraded from between 1150-
1350 billion barrels to between 850-900 billion barrels, based on recent
research.
 Sir David King, Director of the Smith School, commented: ‘‘We have to face up
to a future of oil uncertainty much like the global economic uncertainty we
have faced during the past two years. This challenge will have a longer term
effect on our economies unless swift action is taken by governments and
business. We all recognize that oil is a finite resource. We need to look at other
low carbon alternatives and make the necessary funding available for
research, development and deployment today if we are to mitigate the tipping
point.’’
THANK YOU !