ACE - The case study challenge by Cairn India aims to find the Amazing Champions of Energy across India. Participants are given a business case addressing concerns in oil and gas industry of India and they are expected to come up with innovative solutions.

1. CASE OF OIL & GAS POLICY
FRAMEWORK IN INDIA
IS INDIA REALLY ENERGY SECURE ?

2. This
About
Before getting started we have
to know what we would talk
about in next few minutes. So it
is all about E&P sector of any
country. E&P (Exploration and
Production sector) stands for
upstream oil and gas industry of
the country.

3. (all data in mbpd)
2001-02 2002-03 2005-06
Demand
99.70
Supply
32.03
Gap
67.67
Demand
114.30
Supply
33.05
Gap
81.25
Demand
140.60
Supply
33.98
Gap
106.02
Demand
199.60
Supply
33.47
Gap
166.13
2011-12
Gap
Over
years
67.6
81.2
106.1
166.13 (all data in mbpd)
Upstream
Usance
Coal
41%
Petroleum
23%
Solid
biomass &
waste
23%
Natural
gas
8%
Nuclear &
other
renewables
5%
Source: US Energy Information Administration (EIA); Asia-Pacific Economic
Cooperation (APEC); Aranca Research Notes: Mtoe – Million Tonne of Oil
Equivalent
Consumption Pattern in 2011
FUTURE CONJECTURES OF INDIAN
ENERGY FUEL MIXCoal
42%
Petroleum
24%
Solid
biomass &
waste
15%
Natural gas
11%
Nuclear &
other
renewables
8%
Source: International Energy Agency (IEA);
12th Five-Year Plan; Aranca Research
Consumption Pattern Expected in 2035
Oil consumption is estimated to expand at a
CAGR of 3.4 per cent during FY2008–16F to
4.0 mbpd by 2016
Owing to this strong expected growth in demand,
India’s dependency on oil imports is expected to
increase further
Statistics show that only 30% blocks(acreages) in India is being
explored by various public or private companies. so question is that
“Is India really in stringent condition in E&P field? answer is NO.
We are affluent in sources but our efforts to harness them are
limited as well as trite.

4. WHY ALL THESE
STATICS ?ENERGY SECURITY is defined comprehensively in India, as “we are energy secure when we can supply lifeline
energy to all our citizens irrespective of their ability to pay for it as well as meet their effective demand for
safe and convenient energy to satisfy their various needs at competitive prices, at all times and with a
prescribed confidence level considering shocks and disruptions that can be reasonably expected” (PC, 2006).
ENERGY SELFSUFFIENCY is the state of a country to be Energy secure as well as
self dependent with reference to its energy needs .
It is the state of a a country which
fulfills all its energy needs
via any wayEnergy security on
our own
So the conclusion is “ If a country is self-sufficient then it will be
Energy secured definitely
But not vice-versa”.
Observing all the attached statics
We found that
“
IS NEITHER ENERGY SECURED
NOR
SELF DEPENDENT IN EXTANT
SCENARIO
AND
CONDITIONSS ARE GETTING
INTRICATE GRADUALLY”.

5. PRESENTE&P
POLICY
SCENARIO
IN
ENERGY
ACCESS
CLIMATE
CHANGE
ENERGY
SECURITY
INDIAN
POLICY
OBJECTS
In India a control center called
“Ministry of petroleum and natural
gas"
by govt. of India is established
which
governs all the actions of E&P
sector
like exploration , production ,
refining ,
bidding etc.
Some government
FORMULAE
FDI
SUBSIDY
ABOUT
• NEW EXPLORATION LICENSING POLICY
• Established in Feb 1999
PROS
• Provides Equal competitive platform to all
• Entices foreign companies in Indian market
CONS
• Some policies under it like extension policy
• Affects adversely the sprit of companies
• Also acts a deterrent for idler companies
ABOUT
• FOREIGN DIRECT INVESTMENT
• Established in Feb 1991
PROS
• Newly offered 100% FDI is very alluring
• Automatic root is very fast
CONS
• Still many of sectors are restricted to 51%
• Govt. root is procrastinated and time taking
ABOUT
• DIMINISHED PRICES BY GOVT. FOR
PEOPLE
• Subsidy on LPG was first introduced in 196
PROS
• Affordable energy to poor people
• Provides lifeline to non-capable
CONS
• It is converted into shits like CORRUPTION
BLACKMARKET etc.
• Due to this poor is getting poorer and rich is
getting richer

6. FUTURE
DOES INDIA NEED SOMETHING NEW FOR A BETTER
The answer is yes, we need that as we saw, extant
govt. policies have some pitfalls which hinder the
desired growth of O&G sector in India. So for a
secured as well as prosperous tomorrow, India needs
a new policy design
SOLUTIONS
ACCORDING TO US THE PROPOSED
• Extension policy should be reformed and extensions must be
given only if necessary
• Currently prices and location is determined only by govt.,
which is declining factor to companies, should be flexible.
• Fiscal package should not be in such a way that companies
stammer before invest in India.
• Almost all sectors should be subjected to 100% FDI
• Govt. route must be logistic and fast as well as automatic rule.
• Subsidy plan should be according to pay scale of family, low pay scale
people would get high subsidy and affluent ones would get less of that,
this balanced plan must be carried out for better future and also
transparency should invoke.
Beyond all these let us think for a while, India in present is not a poor
reservoir of energy, but the main issue is that we are not able to access
them. So what is the baffle to this? Where are we lack in? Is the
answer is technology, finance, support etc.?
No these are only bugs that can be fixed if we want. The main obstacle
is "how keen are we towards this goal?" we lost the hope, we lost the
positivity. All we have to do, that is to be determined badly towards
our goal, the misuse of the various policies has to be stopped, and the
development of Indian energy must be at first priority.
ARE:

7. SOME INTERNATIONAL GOOD
POLICIES
JUST IMPLIMENTATION OF
EXISTING PLANS AND POLICIES
DOESN’T MEAN THAT THE
COUNTRIES ARE TRYING TO BE
ENERGY SECURE.
SOME EXTRA EFFORTS ARE TO
BE INVOKED TO BE AT THE
CREST OF WORLD RANKINGS IN
PRESENT COMPITITIVE ERA.
SUCH AS WORK HAS SHOWED
BY &
• Land Stewardship
• Sustainable Communities
• Technology Based On Water
CANADA
• Technology Advancement like Underground
lightning, Horizontal Drilling.
• Carbon Reducing Formulae
• Focus on Health, Safety & Environmental
Issues
UNITED STATES

8. TIMELY ACTION ON
ENERGY
SECURITY
•Hackneyed and dawdling govt. formalities
must be flexible and soar.1
• Ministry rules and policies must be
alluring to foreign countries to invest in
India .
2
• Efforts to be in such a direction to
dwindle imports in India.3
•Renewable sources , a dazing way to most of
the problems should be approached.4
• Bicameral parliament rules shouldn’t be acted in oil
and gas sector, there should be one central control
center for all public and private companies in India
irrespective of states in which they are .
5
• 6. All govt. policies like NELP, subsidy, FDI, FII, have to
be revised and revived time to time for get along with
global competition.6

9. ROADMAP FOR

10. WHAT IS THE
CONCLUSION?
AFTER OBSERVING PREVIOUS SLIDES WE CAN SAY IN CONCISE WAY THAT
PRESENTLY INDIA IS NEITHER SELF SECURE NOR SELF DEPENDENT,
BUT WE ARE CAPABLE TO BE IF WE RIDE OUR POLICY VEHICLE ON THE
PROPOSED ROADMAP.
w.iea.org www.petroleum.nic.in www.google.com/im