Oil & Natural Gas: News & Discussion

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Raju

Re: Oil & Natural Gas: News & Discussion

Post by Raju »

So gentlemen please note how crude oil has been opened up for unrestrained speculation in two very carefully and meticulously planned strikes, which has led to the present crises.

2001
Strike One
The trading of energy commodities by large firms on OTC electronic exchanges was exempted from CFTC oversight by a provision inserted at the behest of Enron and other large energy traders into the Commodity Futures Modernization Act of 2000 in the waning hours of the 106th Congress.
2006
Strike Two
Then, apparently to make sure the way was opened really wide to potential market oil price manipulation, in January 2006, the Bush Administration's CFTC permitted the Intercontinental Exchange (ICE), the leading operator of electronic energy exchanges, to use its trading terminals in the United States for the trading of US crude oil futures on the ICE futures exchange in London ­ called "ICE Futures."
links:
http://en.wikipedia.org/wiki/Commodity_ ... ct_of_2000
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Re: Oil & Natural Gas: News & Discussion

Post by Atish »

Conspiracy theory,

The CFTC still has oversight over NYMEX trades where the overwhelming majority of trade takes place, there is little or no OTC trading in oil o/w.

As for the ICE, all that means is that they are subject to European regulations rather than US, which are generally jut as stringent.

There is NO EVIDENCE PERIOD of any futures trading based manipulation of Oil by traders, companies, or governments.

Please try to understand the basics of market operation first.

Cheers.
Atish.
Raju

Re: Oil & Natural Gas: News & Discussion

Post by Raju »

I was waiting for this onlee ..

we can take it step-by-step
A June 2006 US Senate Permanent Subcommittee on Investigations report on "The Role of Market Speculation in rising oil and gas prices," noted, "there is substantial evidence supporting the conclusion that the large amount of speculation in the current market has significantly increased prices."
The Senate report was ignored in the media and in the Congress.
By not requiring the ICE to file daily reports of large trades of energy commodities, it is not able to detect and deter price manipulation. As the Senate report noted, "The CFTC's ability to detect and deter energy price manipulation is suffering from critical information gaps, because traders on OTC electronic exchanges and the London ICE Futures are currently exempt from CFTC reporting requirements. Large trader reporting is also essential to analyze the effect of speculation on energy prices."

The report added, "ICE's filings with the Securities and Exchange Commission and other evidence indicate that its over-the-counter electronic exchange performs a price discovery function -- and thereby affects US energy prices -- in the cash market for the energy commodities traded on that exchange."
A glance at the price for Brent and WTI futures prices since January 2006 indicates the remarkable correlation between skyrocketing oil prices and the unregulated trade in ICE oil futures in US markets. Keep in mind that ICE Futures in London is owned and controlled by a USA company based in Atlanta Georgia.
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Re: Oil & Natural Gas: News & Discussion

Post by jahaju »

Construction of Strategic Crude Oil Storages

To ensure energy security, the Government of India has decided to set up 5 million metric tones (MMT) strategic crude oil storages at three locations namely, Mangalore, Visakhapatnam and Padur (near Udupi). These strategic storages would be in addition to the existing storages of crude oil and petroleum products with the oil companies and would serve as a cushion in response to external supply disruptions. The construction of the proposed strategic storage facilities is being managed by Indian Strategic Petroleum Reserves Limited (ISPRL), a Special Purpose Vehicle, owned by Oil Industry Development Board (OIDB).

The proposed storage sites are located near east and west coasts so that they are readily accessible to the refining sector through marine distribution.

Strategic Crude Oil Reserves would be in underground rock caverns and are expected to be operational by 2012. Underground rock caverns are considered the safest means of storing hydrocarbons. The estimated cost of the project is around Rs.2400 crore at September 2005 prices excluding the cost of crude oil for filling the caverns. ISPRL will have ownership and control of the crude oil inventories and will coordinate the release and replenishment of Crude Oil Stock during supply disruptions through an Empowered Committee to be constituted by the Government of India.

Visakhapatnam Project:
EIL has been appointed as Project Management Consultant. EIL has, in turn, appointed M/s. SWECO of Sweden as their back up consultant. Supplementary investigations carried out at site through M/s RITES provided the inputs required for determining the optimal cavern capacity. Based thereon, the storage at Visakhapatnam originally planned for storing 1.0 MMT of crude, has been enhanced to 1.33 MMT. All requisite environmental clearances from Ministry of Environment & Forest (MOE&F) and State Pollution Control Board have been received including the revised clearances for enhanced storage capacity. Hindustan Construction Company Ltd. (HCC), one of India’s premier infrastructure construction companies has been awarded the underground civil works contract. The effective date for commencement of construction of the cavern is January 16, 2008. The project is scheduled to be completed by January 2011. The contractor has mobilized personnel at the site and work on the Access tunnel and the shafts have commenced. HCC bagged the order for Rs.375.38 crores, through a Net based Reverse Auction process, a novel method for a rate contract of such a large magnitude. The Project involves excavation of huge underground caverns, 30 m high (almost 100 feet) and 20 meter wide. The total length of the caverns will be more than 3 kilometers and the amount of rock expected to be excavated will be approximately 5 million tons. HCC has obtained necessary clearances from Labour Department.

National Insurance Company Ltd. has been awarded the Contractors’ All Risk Insurance cover of the underground civil works.

For the above ground works, the NIT for prequalification of bidders has been issued on May 1, 2008. Based on the discussions with the Backup consultant regarding the process design basis, the scope of above ground works has been finalized. The bid package is likely to be finalized by June 2008.

Mangalore Project:
EIL has been appointed as Project Management Consultant. EIL has, in turn, appointed M/s. Geo-stock of France as their back up consultant. Government has approved storage of 1.5 MMT of crude oil. However, supplementary investigations are being carried out at site through M/s RITES for determining the optimal cavern capacity. The environmental clearance dated 11th March 2008 has been received from MOE&F. Land for the project has been acquired by Mangalore Special Economic Zone Ltd. (MSEZL). On account payment of Rs.41 crore (approx.) has been made to MSEZL. Approval has been obtained from Development Commissioner, Ministry of Commerce for establishing the unit in SEZ area. Central Line Survey for pipeline route has been completed. Cadastral survey report for the pipeline route is under review by EIL. The tenders for pre-qualification of underground bidders is likely to be issued shortly.

Padur Project :
Cadastral Survey for plot is completed. Application has been filed with Karnataka Udyog Mitra on 29th April 2008 for acquisition of land for the site through Karnataka Industrial Area Development Board (KIADB). Central Line Survey for the proposed 35 km pipeline route has been completed. Cadastral survey for the same is nearing completion. Application has also been filed with Department of Environment and Ecology, Government of Karnataka for approval of the terms of reference for the environmental impact and risk assessment reports.
phew! Somebody out there seems to be doing a pretty good job?
link
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Re: Oil & Natural Gas: News & Discussion

Post by Prem »

2008: “Transocean Inc. (NYSE:RIG) today announced that the ultra-deepwater drillship Dhirubhai Deepwater KG2 (formerly Deepwater Pacific 2), which is owned by a joint venture in which the company has 50 percent interest, has been awarded a five-year drilling contract from Reliance Industries. The contract is expected to commence in the first quarter 2010 following shipyard construction, sea trials, mobilization to India and customer acceptance.

Contract revenues which could be generated over the first six months and remaining 54 months of the contract period are estimated to be $90 million and $838 million, respectively.

In addition, Transocean announced that the first ultra-deepwater drillship owned by the joint venture, Dhirubhai Deepwater KG1 (formerly Deepwater Pacific 1), has now had its previously announced four-year contract extended by Reliance to five years. Contract revenues which could be generated over the first six months and remaining 54 months of this contract period are estimated to be $90 million and $838 million, respectively. The drilling contract is still expected to commence in the third quarter of 2009, following shipyard construction, sea trials, mobilization to India and customer acceptance
http://seekingalpha.com/article/84383-t ... volatility
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Re: Oil & Natural Gas: News & Discussion

Post by Prem »

Geoglobal Resources Up 24% on Major Discovery in Krishna-Godavari Basin
by: Kirk Lindstrom posted on: July

There was a buzz of excitement all around Sachivalaya on Wednesday as the news of the discovery spread. Officials said the GSPC's success is bigger than any other wells it dug so far. Officials said the GSPC's success is bigger than any other wells it dug so far.

So far, the GSPC has drilled 10 wells in a 120 sq km off-shore area, called Deen Dayal. Gas has been struck in six of these wells. The discovery in KG-22 is believed to be the biggest so far and drilling had taken up at a depth of 6,000 metres — the deepest so far.
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Re: Oil & Natural Gas: News & Discussion

Post by bala »

More on the discovery..

Image

Gujarat Chief Minister Narendra Modi at KG-22 oil and gas exploration rig in Deendayal Block of Krishna-Godavari basin

GSPC to invest $1 billion in KG basin
KG-22 alone holds three trillion cubic feet (tcf) of gas,” he said adding that the entire block in his assessment holds more than 20 tcf of reserves. Gujarat State Petroleum Corporation (GSPC) would invest Rs. 4,100 crore ($1 billion) to bring the eastern offshore Krishna Godavari basin gas field into production by 2011. Mr. Patel said that while the KG-8 well had in 2005 flowed 10 mscfd during testing, the KG-22 well flowed 27.3 mscfd. GSPC has till now discovered gas in three wells KG-8, 15 and 16. It had so far drilled 11 wells. KG-8, according to the development plan submitted to oil regulator Directorate General of Hydrocarbons (DGH), holds a minimum of 2.6 tcf and a maximum of 5.6 tcf recoverable reserves and can produce about 6 mscmd gas.
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Re: Oil & Natural Gas: News & Discussion

Post by sanjaykumar »

the entire block in his assessment holds more than 20 tcf of reserves

That is a little less than the US 2007 consumption. Maybe worth $200 billion?
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Re: Oil & Natural Gas: News & Discussion

Post by vishwakarmaa »

20 tcf of what ? Oil or gas?

Some wells give oil, some give gas, is it like that?
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Re: Oil & Natural Gas: News & Discussion

Post by sanjaykumar »

Meaning gas, measured in trillion cubic feet (oil would be barrels or tonnes).
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Re: Oil & Natural Gas: News & Discussion

Post by Vipul »

Gas hydrates: An inexhaustible energy source.

Deep below the seabed is an infinite source of energy waiting to be tapped.

India is sitting on prognosticated gas hydrate resources of 1,894 trillion cubic metres, which is over 1,700 times as much as the proven natural gas reserves with the country — of 1.08 trillion cubic metres.

To put the resource into perspective, India consumes 90 million standard cubic metres a day of natural gas. If the estimate of prognosticated gas hydrate reserves holds true, the energy source is infinite and can last several tens of thousands of years.

For sure, the way of getting natural gas from gas hydrates — frozen methane — is unknown to science as yet. But crack the challenge, you have solved the country’s energy problem.

Of course, ‘prognosticated reserves’ is an educated guess, but still there is little doubt that gas hydrates as a source of energy is very, very big — something that can permanently solve India’s energy problem.Indeed, much of this has been known to the Indian hydrocarbon sector for a number of years. But the recent developments in the decade-old National Gas Hydrate Programme (NGHP), while being nowhere near breakthrough, are encouraging.

The recent conclusion of the first phase of NGHP led to the discovery of gas hydrate occurrences near the Andamans and in the Krishna-Godavari and Mahanadhi basins.In December, the NGHP will start collecting more seismic data, drill a few more holes and collect more samples of the iced gas. The exercise will lead to a closer estimate of how much natural gas is available in the hydrates.

The real challenge begins then. “Nowhere in the world does the technology (for extracting gas out of hydrates) exist,” says Mr V. K. Sibal, Director General Hydrocarbons (DGH). “But we are confident of developing the technology.”
“Clearly, this is an area of technology leadership for India,” says Mr Jairam Ramesh, Union Minister of State for Power.

“I don’t see it (gas from gas hydrates) coming in the next five years, but I am sure that in the next 10 years, it will be an important source of energy,” he told Business Line.According to the DGH, the delay in the programme taking off was because of “non availability of a suitable deepwater drill-ship with onboard laboratories and experienced staff.”
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Re: Oil & Natural Gas: News & Discussion

Post by Raj Malhotra »

In layman terms is KG area now becoming as big as North Sea "elephantic" find?
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Re: Oil & Natural Gas: News & Discussion

Post by Vipul »

Atish wrote:Conspiracy theory,

The CFTC still has oversight over NYMEX trades where the overwhelming majority of trade takes place, there is little or no OTC trading in oil o/w.

As for the ICE, all that means is that they are subject to European regulations rather than US, which are generally jut as stringent.

There is NO EVIDENCE PERIOD of any futures trading based manipulation of Oil by traders, companies, or governments.

Please try to understand the basics of market operation first.

Cheers.
Atish.
Atish as per a news report each barrel of oil is traded 15-17 times before actual delivery is made. What is the spread on each deal?
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Re: Oil & Natural Gas: News & Discussion

Post by Sadler »

Reliance Chairman Mukesh Ambani earns more compared with overseas rivals by processing cheaper, dirtier crude with high- sulfur content.
Just curious. What is the environmental record of this company? Dirtier crude often implies that the wastes are that much more toxic (various metals like lead, chromium, selenium, arsenic etc)? And secondly, is there a captive market for the sulfur?
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Re: Oil & Natural Gas: News & Discussion

Post by G Subramaniam »

Sadler wrote:
Reliance Chairman Mukesh Ambani earns more compared with overseas rivals by processing cheaper, dirtier crude with high- sulfur content.
Just curious. What is the environmental record of this company? Dirtier crude often implies that the wastes are that much more toxic (various metals like lead, chromium, selenium, arsenic etc)? And secondly, is there a captive market for the sulfur?
The reliance refinery is state of the art
and I expect to be cleaner than western refiners
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Re: Oil & Natural Gas: News & Discussion

Post by vishwakarmaa »

Western companies are facing and have faced Billions of $ penalties because of rowdy environmental laws violations. It is usual feature. I wonder, why noone puts a penalty on Reliance?

It seems India is still behind western countries in environmental quality compliance. :mrgreen:

One of thing I learnt from west - You can actually keep a dignified and straight face, after committing 100 heinous crimes. I admire this capability. We should imbibe it as soon as possible.
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Re: Oil & Natural Gas: News & Discussion

Post by jahaju »

Sadler wrote:
Quote:
Reliance Chairman Mukesh Ambani earns more compared with overseas rivals by processing cheaper, dirtier crude with high- sulfur content.


Just curious. What is the environmental record of this company? Dirtier crude often implies that the wastes are that much more toxic (various metals like lead, chromium, selenium, arsenic etc)? And secondly, is there a captive market for the sulfur?

Sulphur is sold to fertilizer companies before or after conversion into sulphuric acid and sulphur prices have jumped up. so MA pancho ki pancho ungliya ghee me hai.


http://www.mjunction.in/market_news/sou ... _peaks.php
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Re: Oil & Natural Gas: News & Discussion

Post by Atish »

Vipul wrote:
Atish wrote:Conspiracy theory,

The CFTC still has oversight over NYMEX trades where the overwhelming majority of trade takes place, there is little or no OTC trading in oil o/w.

As for the ICE, all that means is that they are subject to European regulations rather than US, which are generally jut as stringent.

There is NO EVIDENCE PERIOD of any futures trading based manipulation of Oil by traders, companies, or governments.

Please try to understand the basics of market operation first.

Cheers.
Atish.
Atish as per a news report each barrel of oil is traded 15-17 times before actual delivery is made. What is the spread on each deal?
It doesnt matter, there are no "spreads" becoz these are not intermediaries, but speculators and hedgers, financial interest is being traded bot the underlying commidty (hence the term derivatives).

Cheers.
Atish.
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Re: Oil & Natural Gas: News & Discussion

Post by Vipul »

Atish, Specualting and hedging would still be on the price of a commodity over a period of time. In a market where it on the up and up what will be the impact of so many trades?
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Re: Oil & Natural Gas: News & Discussion

Post by Vipul »

PSUs beat RIL in refining margins.

Even as state-owned refineries recorded all-time high margins during the first quarter, gaining from inventories they hold, Reliance Industries, which operates the world’s third largest refinery, posted a modest gain in margins, resulting in the company recording lower-than-expected profits during the quarter.

This is the first quarter during which the Mukesh Ambani promoted company recorded refinery margins lower than its state-owned competitors.Reliance’s 33-million-tonne-per-annum (mtpa) refinery, or 22 per cent of India’s refining capacity, can process cheap grades of crude oil and produce the highest quality of petroleum products. This ensures higher margins for the company.

“It is strange that Reliance has recorded a lower growth in refinery margins. It is much below the market’s expectations,” said a Mumbai-based analyst who tracks the company.Reliance’s refinery margins rose to $15.7 per barrel in the quarter ended June 30, 2008 from $15.4 per barrel in the corresponding quarter of the previous financial year. Analysts were expecting the company to record margins of over $17 per barrel.

State-owned refiners, such as Mangalore Refinery and Petrochemicals (MRPL), reported $18.03 per barrel margins while Indian Oil Corporation (IOC), which controls over a third of India’s refining capacity, made $16.81 per barrel. Bharat Petroleum Corporation’s refinery at Kochi reported margins of $18.65 per barrel during the quarter.

This comes at a time when the Congress-led government’s new-found ally, the Samajwadi Party, has been demanding a tax on windfall profits made by private sector refiners. The margins of the state-owned refiners are, however, projected to fall in the rest of the year as crude oil and petroleum product prices decline.

“Refineries with lower complexity, like the state-owned refineries, cannot sustain the high margins. It is bound to moderate to around $10 per barrel in the rest of the year,” said another Delhi-based analyst, adding Reliance’s refinery margins may rise to nearly $17 per barrel by year-end.The higher margins of the government-owned refineries during the last quarter is primarily due to higher inventory gains. MRPL recorded inventory gains of $11 per barrel while IOC reported around $6 per barrel. Reliance, on the other hand, had inventory gains of a little over $1 per barrel, analysts said.

“The higher inventory gains for the state-owned refineries could be a result of them having more term contracts, where the price of the oil is fixed but the price of petroleum products the refineries sell rise in line with international prices. Reliance has fewer term contracts,” a Delhi-based analyst said.

Refiners also gain from the stocks of crude oil and oil products that they can sell at higher prices as oil prices rise. Oil prices during the quarter rose to record levels due to which the margins of these companies almost doubled from a year ago.Reliance did not respond to queries sent to the company. MRPL and IOC hold a little above a week of stocks, similar to RIL’s, analysts said.
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Re: Oil & Natural Gas: News & Discussion

Post by Atish »

Vipul wrote:Atish, Specualting and hedging would still be on the price of a commodity over a period of time. In a market where it on the up and up what will be the impact of so many trades?

NONE. A high volume of trades only says that market manipulation (which I believe is what you are driving at) is MORE difficult. It has nothing to do with price. However any market can be manipulated if there is a regulatory breakdown. But that is a separate aspect (for all I know could be true) that needs to be gotten into detail. All that has posted on this thread so far is BS CONSPIRACY THEORY.

Cheers.
Atish.
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Re: Oil & Natural Gas: News & Discussion

Post by Prem »

Crude Oil has corrected over 15% from the top. Gold, Silver, Copper, Wheat and other commodities have also retreated from their respective highs. The heavy selling witnessed in the last few days has raised concerns that the air is leaking from the Commodity bubble and that a multiyear bull market might end soon.

Globally, most of economists are now arriving at a consensus that the skyrocketing commodity prices can be best explained in terms of "too much money chasing too few commodities.". The recent monetary policy of the US Federal Reserve has been seriously questioned and criticized. In order to arrest the subprime rout and housing slump, the Fed slashed the Federal funds rate from 5.25% to 2% at a frenzied pace. Ben Bernanke, in a bid to put a floor under the housing and stock markets, cranked up the growth of the MZM money supply to an explosive 15.4% annual rate. As a result, the Dollar’s value plummeted, sending commodities price to sky high. Already, due to turmoil in financial markets, investors had began shifting from equities to hard assets. A combination of uncertain macroeconomic climate and growth in money supply only worked in favor of a commodity rally.

The dollar’s value has special bearing on commodity space, as the chief commodity, i.e crude oil is priced in dollars. "The Fed is printing money and are trying to prevent the recession, they are putting on Band Aids," commodities investment guru Jim Rogers said. Rogers added that "as long as the US central bank and the federal government keep making mistakes, you will have a longer period of slowdown, and it will be perhaps, one of the worst recessions we have had in a long time in America."

However
http://seekingalpha.com/article/88526-e ... be-pricked
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Re: Oil & Natural Gas: News & Discussion

Post by Neshant »

the only reason oil prices went down was because opec increased production.

they are afraid that high oil prices is destroying demand and increasing the demand for alternative energy policies.
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Re: Oil & Natural Gas: News & Discussion

Post by Tanaji »

http://in.rediff.com/money/2008/aug/11petro.htm
Sources said the Committee, besides suggesting freeing auto fuel pricing from government control, also recommended changes in distribution of domestic LPG by restricting only six refills per connection a year.
Does this mean 6 refills period or 6 refills at the subsidized rate? If its the former, what are they smoking? How many households manage to get by on a single cylinder for 2 months?
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Re: Oil & Natural Gas: News & Discussion

Post by SSridhar »

The new gas strikes by RIL could be bigger than the 2002 find
Mukesh Ambani's Reliance Industries Ltd has come across gas while drilling an appraisal well in its prolific acreage in the Krishna-Godavari basin.

The sources said it was too early to indicate any gas reserve figures for the latest appraisal well but the buzz in the market is the strike could be bigger than the 2002 find, the country's biggest commercially-viable discovery so far.
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Re: Oil & Natural Gas: News & Discussion

Post by Prem »

SSridhar wrote:The new gas strikes by RIL could be bigger than the 2002 find
Mukesh Ambani's Reliance Industries Ltd has come across gas while drilling an appraisal well in its prolific acreage in the Krishna-Godavari basin.

The sources said it was too early to indicate any gas reserve figures for the latest appraisal well but the buzz in the market is the strike could be bigger than the 2002 find, the country's biggest commercially-viable discovery so far.
Great news. As i mentioned in Nuke thread , now we should hear many more of these "new" discoveries. :D
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Re: Oil & Natural Gas: News & Discussion

Post by VinodTK »

Vipul
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Re: Oil & Natural Gas: News & Discussion

Post by Vipul »

Fastest claims fastest exploration and production effort in any deep water basin in the world.

Mr Mukesh Ambani, Chairman and Managing Director of Reliance Industries, does little in half measures.
He had not interacted with the media for at least two years, yet the Chairman of the country’s largest private sector company made up for the hiatus by spending most of Sunday with scores of journalists from across the country.

Mr Ambani was profusely apologetic for spoiling their Sunday. He had thought he would use the interaction to announce to world the first flow of oil from the company’s oil and gas field in the Krishna-Godavari basin, but he was pre-empted by a leak of that news a couple of days ago. So, he was left to explain the significance of the “historic day” for India. He did so with the same passion and commitment that has brought the first commercial quantities of oil flowing from a field just six years after gas was first discovered.

He claimed it was the fastest exploration and production effort in any deep water basin in the world. The global average is about nine years, he said, quoting a Goldman Sachs study.What there is is a huge factory set up on the sea bed 7,000-8,000 feet under water, at temperatures close to freezing, run entirely with robots.It was “world class expertise that Reliance had developed from scratch,” he said.

He said the production of oil and gas from the Krishna basin meant a lot for India’s energy security. He explained that within the next year-and-a-half, his company would be producing the equivalent of 550,000 barrels of oil a day increasing the domestic petroleum output of 1.3 million barrels a day by over 40 per cent, thereby reducing the need to import oil.

The country paid $56 billion last year for imported oil. Mr Ambani said preliminary studies had indicated that the Cauvery and the Mahanadi basins also bore immense potential.

“We are more blessed with gas than oil,” he said. “That is a huge advantage because gas is the fuel of the 21st century, it being environment friendly.”

Alluding to the telecom model that he said had empowered the country, he said that in a matter of months, natural gas can be piped into millions of homes as cooking fuel. It would obviate the need for cylinders to be carried around, and it would be cheaper for consumers, the equivalent of Rs 116 a cylinder. The current price ranges from Rs 304 to 352.
Last edited by Vipul on 22 Sep 2008 20:43, edited 1 time in total.
bart
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Re: Oil & Natural Gas: News & Discussion

Post by bart »

Is this the same kind of gas that you can run on a CNG car?
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Re: Oil & Natural Gas: News & Discussion

Post by Vipul »

Yes.

“The oil equivalent production from KG basin will be 40 per cent of India’s total production of 1.3 million boepd (barrels of oil equivalent per day) of hydrocarbons (both oil and gas), which can feed cooking gas to 100 to 120 million households and CNG for 65 million vehicles, besides producing thousands of megawatts of power,” said Mukesh Ambani.
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Re: Oil & Natural Gas: News & Discussion

Post by sanjaykumar »

$20 billion a year from one field and many others in the basin. Spectacular. $20 Billion saved on outgo means more domestic investment and less funding for madarasas.
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Re: Oil & Natural Gas: News & Discussion

Post by Prem »

sanjaykumar wrote:$20 billion a year from one field and many others in the basin. Spectacular. $20 Billion saved on outgo means more domestic investment and less funding for madarasas.
Very tiny, minute area is explored so far . There are going to be very pleasant surprises. Till about 10 years ago there was almost no money allocated on exploration by ONGC and now we have many private players with big $$$.
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Re: Oil & Natural Gas: News & Discussion

Post by Suppiah »

Much of the civilised world still relies on animals for transport. I am not referring to farmers using bullock carts in the third world but rich countries importing oil form Middle East terrorists. With Brazil becoming a huge exporter of oil soon (matter of years, they are reporting huge finds, OPEC is asking them to become member) and India becoming at least 50% self-sufficient in energy and US drilling everywhere and anywhere in next few years, I think the nails on the coffin of ME animals is getting bigger and bigger..

Kudos to Ambani. Hope they can settle family feud soon and start pumping gas.
Prem
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Re: Oil & Natural Gas: News & Discussion

Post by Prem »

Suppiah wrote:Much of the civilised world still relies on animals for transport. I am not referring to farmers using bullock carts in the third world but rich countries importing oil form Middle East terrorists. With Brazil becoming a huge exporter of oil soon (matter of years, they are reporting huge finds, OPEC is asking them to become member) and India becoming at least 50% self-sufficient in energy and US drilling everywhere and anywhere in next few years, I think the nails on the coffin of ME animals is getting bigger and bigger..

Kudos to Ambani. Hope they can settle family feud soon and start pumping gas.
Suppiah , exactly my thought and Alhamaduillilah, along with ME camels the Al izlam will be put to rest for good and this time no Shikwa will be written.. or heard. Once the Commercial exploitation of Gas Hydrate starts, it will be matter of few years before Cowboys and Indians start playing.
Suppiah
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Re: Oil & Natural Gas: News & Discussion

Post by Suppiah »

Once oil itself and particularly ME oil accounts for 10-15% or less of energy needs of Europe and even less for US (even now it is quite low) and they lose ability to create economic chaos and dictate terms, I think the tolerance for terrorism will become suddenly quite low. One blast in the wrong place, we can expect loads of missiles to rain down on Saudi/Iran/TSP and other terror fountainheads to bomb them back to where they rightfully belong - in the 14th century.

Hydro from Arunachal, Gas from AP/West coast, nuclear power from Thorium in TN, solar filling the gaps, hope it happens before we get too old! The Saudi ex-oil minister famously said Stone age came to an end not because we ran out of stones, and so will oil age. As a Saudi minister, he should know a lot about stone age...
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Re: Oil & Natural Gas: News & Discussion

Post by Katare »

I like a one thing that Mukesh Bhai said.

He said I am glad that it is mostly gas since gas is the fuel of 21st century, it is much more greener and doesn't need refining.

If govt enacts right policies and promotes gas uses in the sectors that are oil-import dependent like transport, personal vehicles, cooking gas, fertilizers instead of thermal power plants we can make serious dents in our energy import dependence. Govt would save billion of dollars in subsidies and communities would benefit with cleaner cities and better health. We can import high quality coal from stable/friendly/democratic countries like Australia/USA or poorer African countries instead of burning precious domestic gas in power plants and importing crude oil from some of the most unstable and violent countries of the world in ME.
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