Future of

Hydrocarbons
Presented by

Group 2
Praphull Kabtiyal – B19093
Raghav Grover – B19095
Rucha Kalekar – B19101
Sanchari Das – B19103
 How Oil Evolved

• Discovered in 6th century

B.C. in China
• Comercial Oil wells started
drilling for oil in 1850s
• Demand increased due to
technological
breakthroughs in 20th
century
• Replaced coal as primary
source of energy
• Has a variety of non-energy
uses
What exactly is the Oil Industry?
 Hubbert’s
Curve

For any given geographical

area, from an individual oil
producing region to the
planet as a whole, the rate of
petroleum production tends
to follow a bell-shaped curve.
Global oil production
What now, after the 2018 Permian Discovery?
Fossil Fuel
Divestment

Fossil fuel divestment or fossil fuel divestment and

investment in climate solutions is an attempt to reduce
climate change by exerting social, political, and economic
pressure for the institutional divestment of assets including
stocks, bonds, and other financial instruments connected to
companies involved in extracting fossil fuels.
 • A 2015 report studied 20 fossil fuel companies and
found that, while highly profitable, the hidden
economic cost to society was also large. The report
spans the period 2008–2012 and notes that: "for all
companies and all years, the economic cost to
society of their CO2 emissions was greater than
Fossil Fuel their after‐tax profit, with the single exception of
ExxonMobil in 2008.“
Divestment • Pure coal companies fare even worse: "the
economic cost to society exceeds total revenue
(employment, taxes, supply purchases, and indirect
employment) in all years, with this cost varying
between nearly $2 and nearly $9 per $1 of revenue.
 • Governments have signalled
an end to the fossil fuel era
• The Govts. have committed
for the first time to a
universal agreement to cut
greenhouse gas emissions to
avoid the most dangerous
effects of climate change
• Government and business
leaders said the agreement
set a new goal to reach net
zero emissions in the second
half of the century
• It sent a powerful signal to
Paris Treaty (Paris Climate global markets, hastening
the transition away from
Agreement) fossil fuels and to a clean
energy economy
• It is an alliance of 121 countries
initiated by India
• Most of the countries are sunshine
countries – they lie either between
the Tropic of Cancer and the Tropic of
Capricorn
• The primary objective is to work for
efficient exploitation of solar energy to
reduce dependence on fossil fuels
• India has invited nations to facilitate
infrastructure for implementation of
solar projects
• The alliance has been committed $1 tn
as investment, and it is committed to
making the costs of solar power more
affordable for remote and inaccessible
communities
• The alliance will endorse India in
achieving its goal of generating
100GW of solar energy and 175GW of
renewable energy by 2022
• The countries shall support each other
in research and development as well
as other high level activities
 Does this mean
the end of
Hydrocarbons?

• There has been an

increasing divestment in
fossil fuels, and increased
pressure on Oil & Gas
Companies to invest
further in renewables.
Companies like Shell and
BP have reoriented them
as Energy companies and
are focusing on alternate
sources of energy. Does it
mean that the future of
fossil fuels is bleak?
Petrochemicals – The Future Drivers
of the Oil & Gas Industry
 ICIS Global
Petrochemical Index
(IPEX)

• The ICIS Global Petrochemical

Index (IPEX) provides a capacity-
weighted measure of the average
change in petrochemical prices
over time.
• Dating back to January 1993,
historical ICIS prices for a basket of
12 essential petrochemical
products in the US, western Europe
and northeast Asian markets have
been weighted by regional
nameplate capacity to generate a
monthly index value.