Professional Documents
Culture Documents
We would like to express our deep feeling of gratitude and thanks to our
parents, sister, friends and our classmates and roommates, who offered us full
fledged support and all those who knowingly or unknowingly helped us to fulfill
the project.
DEVDUTT GOSWAMI(26)
DHWANEET MEHTA(54)
MITESH SHAH(57)
DARSHIT SHAH(60)
INDEX
SR.NO
PARTICULARS
ACKNOWLEDGEMENT
PAGE
NO.
EXECUTIVE SUMMARY
INTRODUCTION
INVESTMENT OPPORTUNITIES
ONGC
OIL INDIA LTD
6
6.1 OIL INDIA LTD(OIL's) Vision
6.2 Corporate Objectives
6.3 Research and development
6.4 Production activities
6.5 Exploration and development
6.6 Drilling and work over services
INDIAN OIL CORPORATION
7
7.1 Brands of IOC
7.2 Investments of IOC abroad
7.3 Vision
7.4 Mission
7.5 Values
7.6 Company profile
7.7 Major projects
GULF OIL COMPANY(HINDUJA GROUP COMPANY)
8
GUJARAT GAS
9
9.1 Transmission System
9.2 Natural Gas distribution
9.3
Health,
Environment
Safety,
Security
and
10
11
GAIL
Bongaigaon Refineries and Petrochemicals Limited
(BRPL)
Conservation of petroleum products
12
12.1 In house conservation.
12.2 Petroleum Conservation Research Association (Pcra)
And Its Activities
12.3 End Users Of Petroleum Products And Conservation
Efforts
12.4 Further Tips For Conservation To Be Taken By
Individuals
12.5. Role Of Oil Industry To Promote Oil Conservation
13
LPG
Bibliography
14
15
16
17
Other compounds found in natural gas include carbon dioxide, helium, hydrogen
sulphide, and nitrogen. It is found around the world, but the largest reserves are
in the former Soviet Union and the Middle East. This gas is lighter than air and is
highly flammable, made up mainly of a gas called methane. Methane is a simple
chemical compound that is made up of carbon and hydrogen atoms. Natural gas
usually has no odour and cannot be seen. Before it is sent to the pipelines and
storage tanks, it is mixed with a chemical that gives it a strong odour, almost like
rotten eggs. The odour makes it easy to detect a leak.
Natural gas is the cleanest burning fossil fuel. When it is burned, it gives off less
carbon dioxide than oil or coal, virtually no sulphur dioxide, and only small
amounts of nitrous oxides. Natural gas is mostly composed of methane and other
light hydrocarbons. Both the carbon and the hydrogen in methane combine with
oxygen when natural gas is burned, giving off heat. Coal and oil contain
proportionally more carbon than natural gas, therefore giving off more carbon
dioxide per unit of energy produced. Natural gas gives off 50% of the carbon
dioxide released by coal and 25% less carbon dioxide than oil, for the same
amount of energy produced. Carbon dioxide is the most important greenhouse
gas contributing to global warming.
To find oil and natural gas, companies drill through the earth to the deposits deep
below the surface. The oil and natural gas are then pumped from below the
ground by oil rigs. They then usually travel through pipelines.
At oil refineries, crude oil is split into various types of products by heating the
thick black oil. The products include gasoline, diesel fuel, aviation fuel, home
heating oil, oil for ships, and oil to burn in power plants to make electricity. Oil is
used for transportationcars, airplanes, trucks, buses, and motorcycles.
Oil is stored in large tanks until it is sent to various places to be used. Oil is also
made into many different productsfertilizers for farms, clothes, toothbrush,
plastic bottle, and plastic pen. There are thousands of other products that come
from oil. Almost all plastic comes originally from oil. Oil is transported in huge
pipelines and tanker ships to places where it is made into other products.
The origin of the oil industry in India can be traced back to the last part of the
19th century when petroleum was discovered in Digboi in north-east India.
Thereafter large numbers of oil fields have been discovered both inland and offshore. This has led to the setting up of refineries to process the oil and gas for
use
in
various
sectors.
ONGC will supply Gas to Rajasthan Rajya Vidyut Utpadan Nigam Ltd.
(RRVUNL) for its 330 Mega Watt (MW) power plant coming up at
Dholpur, to partially bridge the acute power shortage in the western
state.
This brings a new dimension to the association between ONGC and
Rajasthan, which is more than four decades old. A Gas Sales and
Purchase (GS&P) agreement was signed between ONGC and the
Rajasthan entity on 31st October 2005 at Jaipur.
The signing ceremony was presided over by the Honble
Chief Minister of Rajasthan Ms. Vasundhara Raje.
The Company has been the pioneer in the Indian oil ind
implement the concepts of modern reservoir management. N
reservoir simulation has remained our forte almost since its in
Introduced by the Company for the first time in India way back
seventies, simulation has been used as an important
management planning, production forecasting and decision
Based on numerical simulation studies, gas and water injectio
and polymer flooding projects have been successfully implem
our fields yielding recoveries on the average of over 20% in e
what would have been recovered by primary depletion alone.
many areas of the Company's strength, special mention ha
made of the expertise developed in reservoir management o
fields. Today, the Company has the potential in terms of the
Research & Development has been an on-going process since the inception of
the company. During the earlier days, R&D activities were carried out by pooling
resources from various operating departments. Some of the significant initial
R&D achievements include, thermal conditioning of oil for pipeline transportation
of OIL's waxy crude, development and indigenisation of speciality oilfield
chemicals like demulsifiers, deoilers and flow improvers, polymer flooding for
enhanced oil recovery etc. In 1985, a full fledged R&D Centre was set up to
intensify R&D activities for continuous upgradation of technology and expertise in
the operations of the company. Within a short span of time, the centre has
equipped itself with the most modern sophisticated instruments and computing
9
PRODUCTION ACTIVITIES
The Company has accumulated over a hundred years of experience in the field
of oil and gas production, since the discovery of Digboi oilfield in 1889. Possibly,
the only company to do so. From well completion to wellbore servicing,
installation, operation and maintenance of modern surface handling facilities, the
company has the skill and expertise to manage the entire range of operations
10
11
12
envisaged
extensive
fields but
a new
studies.
The Company has so far acquired, processed and interpreted over 77000 Line
kms of 2D and 2000 sq km of 3D seismic data in the wide variety of forums
including terrains, hills, deserts, rivers, marsh, etc.
13
has resorted to cluster well drilling for developing its oil and gas fields. This has
resulted in protection of green belt surrounding OIL's operational area.
The company has a legacy of pioneering innovations and achievements in
drilling. The all round excellence in performance could be attributed to drilling
wells efficiently by the rig building team and proper maintenance of equipment
at the company's well-equipped Workshop and have achieved peak
performance level of over 20000 M/Rig year.
14
(1)SERVO
SUPERBRAND. SERVO has genuine oil tie ups with a wide range of companies
like Hyundai, Maruti, Bajaj, Lancer. Anil Kumble, the ever dependable sporting
icon is SERVO Brand Ambassador.
Developed exclusively at IndianOil's world-class R&D Centre at Faridabad, there
is a SERVO lubricant for virtually every single application. With over 42% market
share and 450 grades, the country's leading SERVO brand lubricants from
IndianOil are sold through over 8,100 IndianOil petrol/diesel stations, over 1,300
SERVO Shops and a countrywide network of bazaar traders.
(2) Indane LPGas
IndianOil Indane LPGas is used in 40 Million
homes as cooking fuel and commands over
48% market share in India. Indane LPGas is
marketed through a network of 4350 Indane
distributors. Widely used in commercial sectors
like industries, hotels & restaurants, medical
labs, etc. 87 Indane Bottling Plants are spread across the country with a
combined bottling capacity of 3.77 MMTPA. New and convenient 5 kg Indane
LPGas cylinders introduced in rural and hilly regions for wider use by
economically weaker sections. IndianOil's auto LPG brand Autogas is the leader
in the segment. Marketed through a network 48 stations out of an industry total of
103 Auto LPG Dispensing Stations.
(3)IndianOil Aviation Service
Meets complete Aviation Fuel requirements
of the Defence Services and for over 75
Domestic and International airlines besides
private aircraft operators. IndianOilAviation
Servicess is ISO 9002 certified and entrusted
with WIP refueling for national and overseas
dignitaries. IndianOil's prompt, courteous and 'No-Delay' Aviation Fuel Service
has received accolades from major customers. Always on call for providing
services in exigencies of war and peace.
IndianOil Aviation Services has a market share of 65% with a network of 95
Aviation Fuel Stations (AFS) IndianOil Aviation Services is not only the largest
aviation fuel marketer in the country but also the most preferred supplier of jet
fuel for customers in India and abroad. IndianOil Aviation Services serves over
71 International airlines besides the domestic airlines in India. From
Thiruvananthapuram in the South, to Leh in the North. From Porbandar in the
West to Ziro in the East.
16
IndianOil Aviation Services covers India like no one else. In fact, every 1.6
minutes, an aircraft is being refuelled by IndianOil Aviation Services, somewhere
in the country. It also caters to over 90% demand of the Indian Defence services,
besides the sensitive requirements of WIP flights at all the airports and at remote
helipads/helibases across the Indian subcontinent. IndianOil Aviation Services
not only maintains world-class standards in operations and safety but also
conforms to the stringent global quality requirements of Aviation Fuel storage and
handling.
Presently, IndianOil has earned this accreditation for thirteen major Aviation Fuel
Stations including at all international airports. Eleven of the fourteen quality
control laboratories have also earned this
accreditation. IndianOil is also the first in India
to have adopted a Quality Control Index
System based on a quality audit. Fourteen
DGCA approved IndianOil laboratories spread
across the country carry out full specification tests for Aviation Fuels.
IndianOil's Aviation Services, with 68% market share, meets the fuel and
lubricants needs of domestic and international flag carriers, Defence Services
and private aircraft operators through 93 aviation fuelling stations. Between one
sunrise and the next, IndianOil refuels over 900 aircrafts. In fact, the refueling
never stops and neither does our customer service, which is round the clock. The
wings foreign exchange earnings during the year 2002-03 touched Rs. 898
crore.
(4)AutoGas
Autogas (LPG) has been introduced in
Hyderabad, Bangalore and Mumbai markets.
This alternative fuel is a good business proposition in the long term, and
IndianOil intends to further expand its marketing in a big way.
(5)Pr
emium Fuels
IndianOil offers XtraPemium Petrol and XtraMile Diesel, which are the best your
vehicle can get. India's first 91 Octane petrol, XtraPremium is reinforced with
multifunctional additives including 'Friction Buster'. Available at nearly 2000 Retail
Outlets
nationwide,
XtraPremium
offers
:
17
.Super
Enhances
Minimizes
Restores
Reduces
Mileage
and
cleaning
peak
engine
exhaust
power
maintenance
Super
of
and
Pick-up
engines
emissions
acceleration
cost
mileage
-Greater
pick-up
-Lower
maintenance
engine
life
-Enhanced
overall
engine
knockings
Acceleration
Costs
performance
Launched on Sept. 24, 2002, the premium auto fuels - XtraPremium and XtraMile
(originally IOC Premium and Diesel Super respectively), mark a new beginning
for IndianOil and offer a new genre of convenience and enhanced comfort for our
customers.
XtraPower
IndianOil's XtraPower Fleet Card Program is a complete fleet management
solution for Fleet Owners / Operators and Corporates. XtraPower is a Smart
Card based Fleet Card Program, which facilitates cashless purchase of fuel &
lubes from designated retail outlets of IndianOil through flexible prepaid and
credit facilities. The fleet card program also offers an exciting Rewards Program
and unique benefits like personal accident insurance cover and vehicle tracking
facilities. Every time you fill your fleet with fuel & lubes using your XtraPower fleet
cards at designated retail outlets of IndianOil, you earn XTRA Points. You can
exchange your accumulated XTRA Points for attractive gifts from XtraPower
Rewards Catalogue including free fuel & lubes. In short, the XtraPower Fleet
Card Program offers you, not just amazing convenience & security but also an
opportunity to translate all your dreams into a reality.
18
The facilities in the Swagat outlets is designed for, Best Q&Q standards in the
industry through Retail Outlet site and tank truck automation Third party
certification through Bureau Veritas Fortnight sampling thru Quality Audit Officers
Training through a professional agency for the Dealer
Incentives available on fuel purchases in the form of loyalty points redeemable
against fuel/lubes and other rewards.
Availability of XtraMile and XtraPremium
Forecourt standards: strict housekeeping and maintenance standards ensure
consistence performance in terms of service, on time, every time.
Non-fueling offering tailored to increasing
driver comfort and productivity.
Non-fueling offering through Best-in-class
alliance on exclusive basis wherever possible
(communication,
food/rest,
healthcare,
parking, vehicle care.)
There are 111 such Swagat Flagship ROs planned across the country of which
45 Swagat Flagships have already been commissioned with a complement of
fuel
and
non-fuel.
XtraCare
The launch of XtraCare was the culmination of a series of plans in retail design,
product and service upgradation, capability training, automation, loyalty
programme, retail site management techniques all benchmarked to global
standards. While the industry standard is to take samples on a quarterly basis,
IndianOil has moved several steps ahead by introducing fortnightly random
sampling with specific importance given to RON (Research Octane Number)
sampling which is truly the definitive test for quality and quantity. The surveillance
audits by BV are being done on a more comprehensive basis. In another
pioneering move, the third party certification, by BV, is also being done, for the
first time, on a range of parameters that include hygiene, service, efficiency of
fore court, allied services and customer satisfaction.
The non-fuel services are being given a major fillip in the IndianOil XtraCare plan
with a wide range of loyalty programme with -XtraRewards, XtraPower and cobranded cards like IndianOil-Citibank credit cards. The automation project of
XtraCare is by far the most state-of-the-art in the country. The cutting edge
technology includes automatic tank level gauges, temperature sensors, density
19
Dhaba
Dormitory, Toilets/Bathing facilites
STD/ Fax facilities
Health checkup for STD thru a tie-up
with Gates Foundation
Secured Parking Space
OEM Service Station in alliance with
Tata Motors Limited
Convenience store thru alliance
partners of choice
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Vision
A major diversified, transnational, integrated energy company, with national
leadership and a strong environment conscience, playing a national role in
oil security& public distribution.
Mission
To achieve international standards of excellence in all aspects of energy
and
diversified
business
with
focus
on
customer
35
Company profile
36
37
Customer First
At IndianOil, customer is the first priority. During 2004-05, a
slew of initiatives were launched for the convenience and
benefit of the various customer segments. Branded auto-fuels
38
(XtraPremium
petrol
and
XtraMile diesel) market was
expanded to cover more retail
outlets across the country.
Exclusive XtraCare retail outlets
were unveiled in select urban
and semi-urban markets during
the year 2004-05, offering a
range of services to enhance
customer delight and loyalty.
Similarly, to meet the discerning needs of highway motorists,
large format Swagat brand retail outlets were launched during
the year with multiple facilities such as food courts, first aid,
dormitories for drivers and cleaners, repair and spare part
shops etc..
Specially formatted retail outlets - Kisan Sewa Kendras were
also launched during the year 2004-05 to meet the diverse
needs of rural customers were launched during the year. These
outlets were strategically positioned to offer product and
services such as fertilizers, seeds, pesticides, farm equipment,
medicines, spare parts for trucks and tractors, tractor engine
oils and pump set oils besides auto fuels and kerosene.
R&D for Growth
IndianOils world class R&D Centre is perhaps Asias finest.
Besides pioneering work in lubricants formulation, refinery
processes, pipeline transportation and alternative fuels such as
bio-diesel, the Centre is also the nodal agency of the Indian
hydrocarbon sector for ushering in Hydrogen fuel in the country.
Expanding Horizons
IndianOil has set its sight to reach US$ 60 billion revenues by
the year 2010-11 from current earnings of US$ 34.44 billion.
The road map to attain this milestone has been laid through
vertical integration forward into petrochemicals and
backwards into exploration and production of crude oil, besides
diversification into natural gas business and globalisation of our
operations.
In petrochemicals, a master plan envisaging Rs. 25,000 crore
39
Transnational Presence
To emerge as a transnational energy major, IndianOil has set
up offices in Sri Lanka, Mauritius and UAE and is
simultaneously scouting new opportunities in new energy
40
41
PRODUCT
2004-05
2003-04
Figures in
TMT
LPG
4763.3
4386.8
NAPHTHA/NGL
3348.5
3688.4
2968.3
2844.2
1847.4
1649.0
SKO
5622.2
5625.1
18050.3
17404.8
622.5
713.2
LUBES / GREASES
433.3
418.9
7807.3
7435.7
42
43
44
45
46
47
48
competition
far
behind.
For the first time IndianOil took the Title Sponsorship of a major
Cricket Event of Global proportions IndianOil Asia Cricket Cup
at Colombo.
IndianOil also launched an immensely successful Customer
Ambassadors' programme which is an umbrella customer
outreach programme.
IndianOil's Aish in Malaysia named to the Limca Book of World
Records as the largest consumer sales promotion campaign
ever: Over 43 Million customers participated in the 'Aish in
Malaysia' contest.
Another record campaign was the Ao Roz Ek Truck Pao -Over
Rs 12 crore worth prizes were declared 31 trucks in 31 days
designed to address the greatest aspiration of a driver i.e. to
own his own truck.
IndianOil, ICICI Bank have formally signed an Memorandum of
Understanding for setting up 'Kissan Seva Pumps' throughout
the country. The Kissan Seva Pumps will market custom built
product/service packages which will be made available to them
at their doorsteps thereby saving considerable Time, Cost and
Energy and avoiding conventional storage and leakage proof
needs.
The Kissan Seva Pumps will primarily market Fuels like Diesel,
Kerosene, Indane LPG and SERVO Lubricants as well as
Financial services, Fertiliser and agro inputs seeds, pesticides,
equipment; Agro products like vegetables, Communication
services, Stationery and other items.
Visual Identity
IndianOil first anticipated customer needs in urban areas for
better, cleaner and well-designed petrol stations almost a
decade ago. IndianOil was also the first to develop a
comprehensive Retail Visual Identity programme to re-orient
the design and standards of our petrol and diesel stations.
IndianOil developed its strategy, marking the entry of colourcoded canopies, multi-product dispensing pumps, concrete
49
Q & Q Concept
IndianOil's retail marketing initiatives are oriented around two
simple concepts - Quality and Quantity. The concept of testing
the product before buying at the IndianOil retail stations has
few parallels in the petroleum industry. The Corporation's focus
has been to segmentise market needs, as the requirements in
urban and semi-urban areas is quite different from the highway
market where the Corporation has a very strong presence.
IndianOil launched a novel 'Check-and-Win' campaign in 49
major cities and towns, whereby motorists win prizes for
checking the quality of fuel at ROs. About 2.62 lakh customers
have already carried out checks across 12 cities, with no
product failures reported.
Top Gear
For IndianOil, the time spent by a customer at its outlet is
valuable. It is, therefore, the Corporation's responsibility to
convert this time into "quality time" for the customer. Quick
delivery of fuel and fast payment transactions add value to
customers' time.
IndianOil has commissioned "Top Gear" in Mumbai as a stateof-the-art petrol station with multiple associated facilities. Top
Gear is tailor-made to provide 'fill-and-fly' service to the Mumbai
50
motorists who battle 'time' in their daily lives. With facilities like
multi-product dispensing pumps, auto carwashes, Convenio
stores, SERVOShops, digital air towers, bank ATM, customer
lounge, art gallery, computerized online billing system, help
desk and cyber cafe, etc., Top Gear symbolizes the cutting
edge of petroleum retail marketing. Several more 'Top Gear'
stations are coming up in major cities to cover all State
Capitals.
Jubilee Outlets
The ever-changing trends in highway traffic and the increase in
the number of automobiles plying on trunk routes set IndianOil
to commission a completely new range of facilities to meet the
demands of this vital segment of our business. In 1997,
IndianOil commissioned the country's first Jubilee Retail Outlet
in Ongole, Andhra Pradesh, in what was a revolutionary step in
petroleum retail marketing in the populous and prosperous rural
hinterlands and National Highways. The Jubilee RO concept,
introduced on the occasion of the Golden Jubilee celebrations
of India's independence, has been a major success in the
history of Petroleum Retailing. Today, IndianOil has as many as
80 Jubilee outlets spread across the country.
Each Jubilee outlet, built on a sprawling four acre area, has
dozens of fuel islands, Convenio stores, massive parking lots,
cafeteria for motorists, dhabas for truckers, dormitories for
tourists and passengers on pilgrimages, playground, bank
extension counter, post office, pharmacy, fist aid facilities,
dedicated STD/ISD facilities, etc.
Cashless Transactions
51
For customer convenience, cashless transactions through cobrand credit cards were introduced by IndianOil at its petrol
stations. The IndianOil-Citibank co-brand credit card grew to be
the largest co-brand credit card in India and was also adjudged
by MasterCard as the best co-brand credit card in South-East
Asia.
Last year, IndianOil also introduced the PowerPlus Fleet card in
association with Sundaram Finance. It also launched the
"SmartGold" smart card together with State Bank of India. Very
recently, for the first time in the country, a co-branded debit card
(MyShoppe) has been introduced through which customers will
pay only at the time of buying goods, including fuel, and also
collect bonus points which can be redeemed at IndianOil ROs.
The Corporation has also tied up with reputed agencies like
Akbarallys' for Convenio stores, with Dominos and Kamats for
food courts, with ICICI Bank, Centurion Bank, etc., for ATMs to
provide an exhilarating retail experience to motorists. In all
these, our effort is to facilitate easier and cashless transactions
so that our customers spend 'Quality Time' at our stations.
IndianOil's retail tie-up with private partners:
IndianOil and Sundaram Finance sign Agreement
Foodworld outlet inaugurated at IndianOil petrol stations
Citibank for co-branded credit cards
ICICI Bank, Centurion Bank and Bank of Punjab for ATMs
Apollo Hospitals for pharmacy/Convenio stores
Akbarallys for Convenio stores
MTNL for telephone bill payments in Mumbai/Delhi
Dishnet DSL for cyber cafes
JK Tyres for digital air towers
Dominos for pizza takeaway outlets
52
Major projects
Joint ventures
Name of JV
Date
of Promoters
Incorp'tn
Equity
&
Area(s) of Operation
Avi
Oil 04.11.1993
India Limited
IOC:
25%
Balmer Lawrie:
25%
NYCO
SA,
France: 50%
Indian
IOC:
To
28.08.1996
50%
build
and
operate
53
Oiltanking
Limited
Oiltanking
GmbH: 50%
terminalling
services
petroleum products.
for
IOC:
50% To construct and import
Petronas,
facilities for LPG import at
Malaysia: 50% Haldia and to engage in
parallel marketing of LPG.
To
implement
Petroleum
Products, Pipeline projects
through
Special
Purpose
Vehicles.
Petronet
Limited
IndianOil
Panipat
Power
Consortium
Limited
Petronet
Limited
CI 07.12.2000
IOC:
50%
MC: 50%
54
55
56
Technology
A 75000 tonnes p.a., ISO 9002 certified, completely computerised facility
in Silvassa acquires specially selected and imported European base
stocks and tailor-made performance additives developed at the Gulf Oil
Research Laboratories in USA and Europe for blending and filling.
The fully equipped laboratory with internationally trained and experienced
chemists conducts over 1200 tests every day to guarantee final product
performance. Specially built programmable logical control systems, aided
by imported French-made software, ensures precise control of the finished
product properties.
Quality
Quality through unswerving customer satisfaction has been Gulf's strong
suit. Change is important and the ISO certified company continuously
upgrades its quality by introducing products developed with newer
57
technology.
Marketing-Customised Solution
Gulf's vast industrial product range covers every application known to man
- from water-dissolving cutting oil and high temperature grease to fireresistant hydraulic fluids. In fact, it is likely that everything you use has
been processed on machinery touched by Gulf Oil.
Network
Gulf Oil started operations in 1993 with a distribution network of
approximately 600 dealers and 54 stockists in the West Zone. Today, this
distribution network has morphed into gigantic operation covering 120
exclusive Gulf Shoppes, 85 depots, over 1200 dealers and 18000 retail
outlets, and the count is rapidly increasing
Update
Shareholders have recently approved Gulf Oil India's merger with IDL
Industries Ltd. in a 2:1 swap ratio. This merger will enable the Hinduja
Group consolidate its position in the Indian chemical segment and give it
better synergies and a larger network for both domestic and international
marketing.
58
HSSE Policy
Safety First
YOU CAN EXPECT FROM G.G.C.L.
59
DONT'S
60
Gas equipments.
Global Recognition
Platts declares GAIL as first among Global Gas Utilities based on Return
on Invested Capital (ROIC) in its Worldwide Survey of Top 250 Energy
Companies in 2004.
61
The use of compressed natural gas (CNG) in vehicles has led to considerable
reduction in air pollution as is evident from the following data:
A. Autorickshaw - Three wheelers:
(Emission in gram/Km)
Bajaj Three wheeler Pollutants Petrol CNG % Reduction
HC
3.26
1.26 63.19
CO
5.48
1.57 71.35
CO2
NOx
0.25
0.20 20.00
HC:Hydrocarbons
CO: Carbon Mono oxide
CO2: Carbon di oxide
NOx: Nitrogen oxides
Source: Bajaj Auto Limited
B. Passenger Cars:
(Emission in gram/Km)
Pollutants Petrol CNG % Reduction
Maruti Omni
Maruti Gypsy
CO
19.79 .55
HC
1.14
1.02 11
CO
4.94
0.59 88
HC
1.86
1.42 24
Premier Padmini CO
Premier 118NE
97
18.38 0.94 95
HC
2.83
2.03 28
CO
15.6
2.04 87
HC
2.57
1.92 25
62
Ambassador
CO
52.16 0.78 98
HC
6.37
4.33 32
% Reduction
by use of CNG over diesel
Ashok Leyland HC
16.67
CO
19.37
NOx
41.77
Air pollution has direct impact on climate change, the major pollutants being
Greenhouse gases: Carbon Dioxide, Methane, Chloro Fluoro Carbons (CFCs)
and Nitrous Oxide. These gases allow sunlight to come in but block some of the
infrared radiation (carrying heat back into the atmosphere) from leaving the
earth's surface. This leads to development of concentrated heat zones on the
earth surface. Development of concentrated heat zones causes turbulence in air
currents and ocean currents leading to increased precipitation, floods, storms,
cyclones and droughts, frequently witnessed phenomena in recent years.
Carbon Dioxide is the most prominent Greenhouse gas. The concentration of
CO2 has increased by over 20 per cent post-industrial revolution. While the
United States is the largest producer of global CO2 emissions (23%), India's
share is relatively lower at 4%.
Particulate matters in the atmosphere also contribute to climate changes. Among
particulate matters, black carbon has a warming effect while nitrates and
sulphates have a cooling effect on the climate. However, higher concentration of
nitrates and sulphates shields the effect of particulate matters on climate change.
Natural gas is one of the cleanest conventional fuels, which can help improve the
quality of air, especially when used in place of other more polluting energy
sources. Natural gas combustion results in virtually no atmospheric emissions of
sulphur dioxide or small particulate matter, and far lower emissions of carbon
monoxide, reactive hydrocarbons, nitrogen oxides and carbon dioxide.
63
Source:IEA
64
65
66
Liquid petroleum gases were discovered in 1912 when Dr. Walter Snelling, an
American scientist, realized that these gases could be changed into liquids and
stored under moderate pressure. From 1912 and 1920, LP-gas uses were
developed. The first LPG cook stove was made in 1912, and the first LPG -fueled
car was developed in 1913. The LPG industry began sometime shortly before
World War I. At that time, a problem in the natural gas distribution process
popped up. Gradually facilities were built to cool and compress natural gas, and
to separate the gases that could be turned into liquids (including propane and
butane). LPG was sold commercially by 1920.
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Multi-media campaigns to create mass awareness about the need for conserving
petroleum products and motivating users to take concrete steps to actually
conserve are undertaken by PCRA and the Oil Marketing Companies through
various media such as TV, Radio, Press, printed literature, outdoor publicity.
Extensive use of Publicity Van of the Government Field Publicity Department of
the States is made for increasing the reach amongst the consumers in the semiurban and rural segments.
6.2 OIL CONSERVATION FORTNIGHT (OCF)
The success of the first Oil Conservation Week (OCW) organized in January,
1991 has led to its continuance in the subsequent years and finally, an extension
to Oil Conservation Fortnights (OCF) from 1997. These are organized by the
entire Oil Sector in close coordination with the concerned Ministries /
Departments of the Union and State Governments, Public Sector Undertakings,
Chamber of Commerce etc., with PCRA acting as the nodal coordinating agency.
Mass awareness and educational programmes and various sectoral activities are
undertaken. Inaugural functions are presided over by dignitaries such as Union
Ministers, Governors, Chief Ministers, etc. and the Fortnight ends with a
Valedictory function in every State.
6.3 END USERS OF PETROLEUM PRODUCTS AND CONSERVATION
EFFORTS
In addition to the activities of PCRA detailed above, sectoral conservation steps
taken by it are as follows:
TRANSPORT SECTOR
Adoption of practices conducive to increased fuel-efficiency
TRAINING PROGRAMMES
INDUSTRIAL SECTOR
Replacement of old and inefficient boilers, furnaces and other oil-operated
equipment with efficient ones
Promotion of fuel-efficient practices and equipment.
AGRICULTURAL SECTOR
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dispensing to CNG vehicle. The mother station initially set up in Ghaziabad has
been re-located and brought near to Delhi at Sarai Kale Khan, in May97. At
present there are seven daughter and four on-line dispensing retail outlets in
Delhi. Further expansion of the infrastructural network to 80 CNG outlets is
proposed by March 2000. The process of acquiring land sites to set up the
required number of outlets is going on.
8.2 FEASIBILITY OF ETHANOL/METHANOL AS AUTOMOTIVE FUEL
Exploration of the feasibility of using alcohol-blended fuel has also received
attention in this Ministry. Recommendations of Technical Committee studying this
issue have testified to the safe usage of blended alcohol upto 6% with gasoline
which does not require any modification of engine design, the only stipulation
being that the alcohol should be of anhydrous variety. Consideration of the use of
this fuel is still in progress.
8.3 USE OF LPG AS AUTOMOTIVE FUEL
LPG is recognized as superior fuel to petrol and diesel in terms of the vehicular
emissions. To abate pollution caused by vehicles, a number of countries in the
World have been using LPG as auto fuel for more than last 30 years.
In India, the use of LPG as auto fuel has been prohibited by Motor Vehicles Act
and LPG Control Order, 1974. With the liberalization in the marketing of LPG
initiated in 1993 by decanalizing the import of LPG and introduction of parallel
marketing of LPG, a number of private sector including multinationals have
started making investment in the development of infrastructure for import of LPG
and its marketing. The availability of LPG from the public sector as well as private
sector has also been increasing through indigenous production as well as
imports.
In order to take further actions relating to amendment of the Acts/Rules/Control
Order, an Expert Committee was constituted. Taking into account the
recommendations of the Committee, the concerned Ministries and Departments
are in the process of making necessary amendments.
9. STEPS TAKEN BY THE MINISTRY ON ENVIRONMENTAL ISSUES
9.1 UPGRADATION OF FUEL QUALITY
(A) INTRODUCTION OF UNLEADED PETROL
In pursuance of the need for reduction of environmental pollution due to
emissions from vehicles, from April,1995 the Oil Companies have made available
unleaded petrol in the in the city of Agra and the four metros of Delhi, Mumbai,
Calcutta, Madras and radial routes emanating from these metros. Petrol with
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reduced lead content of 0.15g/ltr. (maximum) was made available all over the
country from December, 1996. The availability of unleaded petrol was extended
to Capitals of state and Union Territories by June, 1998 and would be extended
to throughout the country by March 2000.
(B) SUPPLY OF LOW SULPHUR HSD
The sulphur in diesel has considerable potential to pollute the air and damage
human health, especially with regard to respiratory disorders caused by high
level of respirable particulate matter. Hence, Low Sulphur Diesel i.e., containing
0.5% sulphur by weight as against the normal proportion of 1% by weight was
supplied w.e.f. April, 1996 in metros and Taj Trapezium. Supply of diesel with still
further reduction of sulphur content upto only 0.25% by weight has been
envisaged w.e.f. January 2000 in the entire country. It was, however, introduced
in Taj Trapezium w.e.f. 1.9.1996 and in Delhi from 14.8.1997. An investment of
Rs. 5600 crores has been made to set up a diesel hydro desulphurization plant in
the country. A further reduction in the sulphur content to 0.05% in diesel in the
National Capital Region w.e.f. April 2000 in compliance of Supreme Court orders
to adopt Euro II norms in the country is contemplated in a phased manner.
(C) SPECIFICATION OF 2-T OILS FOR 2-STROKE ENGINES
To address the environmental issues relating to emissions from 2/3 wheelers,
Synthetic 2-stroke engine oils meeting JASO, FC, Japan have been introduced
w.e.f. 1.4.1999. These environment friendly oils reduce visible smoke and lead to
fuel conservation.
(D) RESTRICTIONS IN BENZENE CONTENT
The benzene content in gasoline is to be restricted to a maximum of 3% by
volume in metro cities and 5% by volume in other cities as required under the
notification of the Central Pollution Control Board from the year 2000. In Delhi,
this has already been implemented.
(E) ADDITIONAL STEPS TAKEN IN DELHI
Pre-mixed dispensers for supply of petrol to 2-stroke engine have been installed
at all retail outlets of all Oil Marketing Companies by December 1998 and ban
enforced on sale of loose 2T oils at petrol stations and service garages from that
date. One Fuel Testing Laboratory (FTL) has been set up at Noida for monitoring
fuel adulteration.
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Six lakh cubic metres of natural gas per day has been allocated for supply
through pipelines to the industrial units in the area. Pipelines to Agra and
Ferozabad are ready. Gas purchase agreements have already been signed with
a number of industrial units in Ferozabad and Agra. Out of these units have
already started using natural gas and fifty more would do so by Dec. 1999. The
distribution of gas would be undertaken by a Joint Venture Company (JVC).
Pending formation of JVC, GAIL has been implementing the project for setting up
the distribution network in Agra and Ferozabad. However, the progress is
conditional on the underpinning of the gas pipeline to the Yamuna River Bridge.
10. FUTURE THRUST AREAS
To give added momentum to oil conservation efforts, there is an urgent need for
an Integrated Energy Policy. This policy would include legislation on energy
conservation, which makes energy audits mandatory for industries; energy
labeling of equipments necessary and BIS standards mandatory. The old
inefficient engines, equipment and processes that do not meet environmental
standards must be scrapped under the policy. The Ministry of Power is working
on this aspect.
SOCIO-CULTURAL FACTORS
Life style changes like demand for lighter automobiles had lead to
increase the demand for oil and gas products and in probably a reason for
high market growth rate.
Again higher level of education had lead to demand for mineral water and
other. This in turn has increased the demand for oil and gas which are
derived demand.
Economical factor
Oil and gas industry is one of the chief consumer of energy in India so
energy conservation has been top priority issue for the perspective of
reducing overall cost and also from point of view of national priority.
Technological factor
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Weakness
It is not always possible to sell the entire production, as the demand may
be low on depressed and hence high levels of inventory have to be
maintained. This leads to high inventory carrying costs.
Subject to cost push inflation; i.e. if cost of raw materials increase then to
maintain margins cost of oil and gas are also increased.
Opportunities
Threats
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