www.pwc.

in

Let's energise
Meeting India's growing fuel
demand

4th National
Convention: Oil &
Gas India

28 August 2015
 Some key figures…..

<1% of
4th largest 4% of global global
energy consumption proved
consumer
reserves

637 kgoe
4.2 Mn 17% of
per capita
b/day global
energy
consumpti population
consumption
on

31% 6.7% 6 - 7%
of imports is of GDP is GDP
crude oil oil imports growth
rate

Let's energise • Meeting India's growing fuel demand 28 August 2015

PwC 3
 O il c o n s u m p tio n (m illio n b a r r e ls /d a y )

India’s growing oil consumption

Percentage of global
consumption
4.1% 4.1% 4.2%
3.8% 3.9%
L5
3.8%
1
3.1% 3.1% 3.2%
3.4%
3.6%

98f
i
c9
n
a5
e
5e
aa
38
11
c6
b0
d5
b4
4c
45f
cb
82f
b
C 9cf 3 .5
3 .7 3 .7 3.8

74 3.1
3 .2 3 .3
o
7 1 2 .7
2 .9
62 .6 2.6
l
8 52
u
e 58
m
f d6
n
9 76
2 e
2 0024 20 0 5 20 06 2 00 7 20 08 2 00 9 2 01 0 20 1 1 2 0 12 2 01 3 20 14

R
a 94
e
d a5
g
8 e8
u
0 8b
l
7 1
a
4 3
r
f 4
c d
8
a
5
0
2
1
6
6
1
3
e
c
4
3
7
0
b

Increasing economic activity and rapid urbanization will push the demand for energy
further

India imports roughly 80% of its crude oil, which is expected to go up to 90%

Let's energise • Meeting India's growing fuel demand 28 August 2015

PwC Source: MoPNG Annual report 2014-15 4
 Oil imports continue to impact our import bill
Im p o r ts (b illio n U S D )

Crude oil imp orts vs total i mp orts (bil lion USD)

4
C 600
37%
4 0%

o
2 500 31% 32% 31% 32% 33%
31%
35%

30%
l
c 29% 489 491
450 448
30%

u
1 400

370
2 5%

m
a 300
304
2 0%
288
n
8 200
251 15%
164 165
9 186
94 106
155
138 10%
87
R
7 100
57
80
5%

e
4 - 0%

g
a
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15(P)

Tota l im ports Oil imports Percenta ge

u
1
l
2
a
4
r
3
9
7
8
5
9
6
e
6
d
8
2
5
1
7
9
2
b
b

Let's energise • Meeting India's growing fuel demand 28 August 2015

PwC Source: MoPNG Annual report 2014-15 5
 In the worst case our forex reserves would have got
exhausted in 10 months
112 1 08 10 6
L
7 5 84 85
95

62 1
i 8 79
70

1
n f

Average price of Indian

3
e 9
1 5
a e
8 a
4 8
3 1
6
USD per bbl

crude oil basket

d 0
a 5
4 4
d c
3 5
d f
b b
3 2
3 f
9 c
6 f
6 4
f 1
9 2
8 8
7 6
2 6
2 9 .0% 8.9 %
a 8.4 %
4
C 0 4
6 .4%
7.7 %
d 5 6 .4% 6 .2%
6. 7%
6.0%
o
9 a 8
l
6 b b

u
6
m
7
n
7
d

Crude oil import bill as a

R
3
e
3
g
0
u
5
l
f
a
4
r
5
C
6
3
9 9.3 1 03.1 101 .6

81.58
percentage of GDP
o
0
d 66.1
58.9
64.5
86 87
9
l
7
c
38.3
51.3
52 54 56
51
u
d
8 37 34
4
m 21
f
f
n
7
4
2 006 -07 2 007-0 8 2 008-0 9 20 09-1 0 20 10-1 1 20 11-1 2 201 2-13 201 3-14 201 4-15 (P)
Oil Non -oil
d
7
9
R
7
Billion USD

6
e
f
e
c
g
9
8
u
6
0

Impact on trade deficit

8
l
7
1
a
4
4
b
r
a
5
9
0
d
a
1
0
a
f
3
7
2
6
f
7
3
1

Let's energise • Meeting India's growing fuel demand Source: RBI data and PwC analysis 28 August 2015
PwC 6
 Equity Oil - Is this the way forward ?

1 2 3
Representing 17% of the global
population, India has less than 1% of • Diversifies the supply
the world’s oil and gas reserves base

India’s dependence on import to meet its

energy demand has intensified concerns
• Is a long-term price
that without reliable & affordable energy,
India will not be able to sustain high hedge
economic growth.

• Adds to reserves

Let's energise • Meeting India's growing fuel demand 28 August 2015

PwC 7
 India’s refining has been on an upward trend from 1988
to 2014

250

215 215
194
200 185
176
80 80
149 149 71
150 71
127 127 132 71
112 115 115 117 44 44
33 33 33
100 27 27 27 27
70
62 0 135 135
0 114 123
50 94 94 99 105 105 105
85 88 88 90
62 70

0
1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- 2013-
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14

PSU Private Total

Source: MoPNG, Government of India

Let's energise • Meeting India's growing fuel demand 28 August 2015

PwC 9
 Thank You

Exploring the possibilities …