Analysis of Current Situation of Oil Distribution and Pricing Mechanisms in Asia

The demand for oil products in Asia, particularly in China and India, is now growing strongly. The demand is estimated to rise to 29.9 million b/d by 2015, demonstrating growth of 15% (approximately 3.9 million b/d) compared to 26 million b/d in 2009. As for supply, until 2008, Asian countries had strived to upgrade their refining capacities only proportionate to demand. Contrary to this, large-scale projects to upgrade facilities undertaken by China and India in 2009 pushed up the refining capacity to 28 million b/d, outpacing demand by 2 million b/d. China and India have plans to upgrade their refining capacities by 3.3 million b/d and 1.2 million b/d by 2015, respectively, which means that supply will surpass demand (29.9 million b/d) by 3 million b/d by 2015. These facts reveal the issue of overcapacity of refining facilities. It is important for the Japanese oil refining sector to curtail such overcapacity so as to achieve an optimal supply-demand balance, to promote trading of products with an emphasis on Japan's advantages, and thereby to reinforce its international competitiveness. Major Asian countries can be divided into two categories in accordance with their oil pricing mechanisms : i.e. countries where oil price is determined based on the free market mechanism, such as Japan, South Korea, etc; and countries where the oil pricing mechanism is regulated by the government, such as China, Taiwan, India, etc. It is important to keep a close watch on the countries with a regulated pricing mechanism, as the recent trend shows that these countries will take steps for deregulation in the future. Oil pricing is closely connected to demand. The climate of demand is the key factor for determining a profitable price. The Japanese oil sectors will need to strive to eliminate the factors which would be obstacles to fair pricing, by means of addressing the overcapacity so as to achieve an optimal supply-demand balance and coming up with effective frameworks to ensure a sound market. In addition, in order for the Japanese oil sectors to sustain their supply chains while maintaining an optimal supply-demand balance, they would need to move ahead to take restructuring steps including a new pricing mechanism so as to attain both "adequate refining margin" and "shortening time lags."oil demand, Asia, oil refining sector

Petroleum Planning as State Building in Timor-Leste

This article examines the aesthetics and contestations surrounding the planning of a far-reaching petroleum infrastructure and development scheme on the south coast of Timor-Leste. The project, known as Tasi Mane, is symptomatic of the central role that oil and gas revenues have come to play in the country’s development. The article explores how promises of prosperity mobilise visions of societal improvement that were once associated with independence and examines some of the social and political effects that the anticipation of petroleum wealth and infrastructure engenders. While the availability of revenues from oil and gas generate modernist imaginaries of prosperity, the Tasi Mane project can itself be seen as a technology of state building. This process is, however, fraught with contradictions, since a state’s legitimacy and autonomy are dependent on recognition by others

Does oil price matter for Indian stock markets?

This paper investigates the long run relationship between oil prices and stock prices for India over the period April 2000- June 2011. We employ Auto Regressive Distributed Lag (ARDL) Model that takes into consideration the long run relationship. The results obtained suggest that volatility of stock prices in India have a significant impact on the volatility of oil prices. But a change in the oil prices does not have impact on stock prices.Oil Prices; Stock prices; ARDL cointegration

Health damage cost of automotive air pollution: Cost benefit analysis of fuel quality upgradation for Indian cities.

The paper has analysed the economic implication of judicial activism of the apex court of India in the regulation of automotive air pollution. It estimates the health damage cost of urban air pollution for 35 major urban agglomerations of India arising from automotive emissions and the savings that can be achieved by the regulation of fuel quality so as to conform to the Euro norms. It has used the results of some US based study and has applied the transfer of benefit method from the US to the Indian situation for the purpose. The paper finally makes a benefit cost analysis of refinery upgradation for such improvement of fuel quality.Urban air pollution ; Health damage cost ; Benefit-cost comparison

INDIA GAS EXCHANGE TODAY’S REALITY AND PATH AHEAD

This research aims to study structure, functioning and operational mechanism of India’s first gas exchange i.e. Indian Gas Exchange (IGX) which is a subsidiary of Indian Energy Exchange (IEX). Exploratory research is used to study and investigate conceptual framework and operational mechanism of IGX. The results of the study show that IEX has unveiled the nation’s first automated natural gas exchange trading platform called IGX for well organized and hefty Gas market and to stimulate gas trading in the country. IGX would lead India towards Gas Based Economy by designing and providing robust solution for natural gas trading and access. So far as price mechanism at IGX is concerned, it is dynamic and market driven which is based on Double-sided closed auction with uniform price mechanism. IGX plays an extremely important and fundamental role towards capitalizing a free market for gas. Clearing and Settlement system at IGX is structured and transparent. As IGX is purely electronic trading platform for natural gas which is considered as barometer of the India’s progressive policy as it integrates the entire energy value chain from gas production

Petroleum Subsidies and Macroeconomic Variables in India

The Government of India has been subsidizing petroleum products, particularly diesel, kerosene under Public Distribution System and domestic Liquefied Petroleum Gas (LPG), where these products are sold below their market prices. It is argued that rising petroleum subsidies have contributed to fiscal pressures in India. The present paper attempts to compare the trend of petroleum subsidies with other forms of subsidies given by the Government of India, and then examine the impact of petroleum subsidies on key macroeconomic variables like Wholesale Price Index, GDP, gross investment, fiscal deficit and interest rate based on official  data from 1992-93 to 2012-13. From a comparison with other components of gross subsidy, the study observes that it is not petroleum subsidy but food and fertilizer subsidies have grown at a sharper rate.  From the use of Vector Autoregression (VAR) for the difference of logarithm of the macroeconomic variable like GDP, investment, interest rate, Wholesale Price Index and Fiscal Deficit, the study observes that the growth rate of petroleum subsidy has no significant impact on the growth rates of these variables. On the contrary, petroleum subsidy has rather been Granger caused by some of the variables like interest rate and fiscal deficit. On the basis of these observations, the obvious argument should be not to target petroleum subsidy singularly as a culprit for rising fiscal deficit and inflation. However, when we make a closer look on the amount of under-recoveries of the Oil Marketing Companies (OMCs), our argument favors periodic revision of prices of petroleum products partially accommodating the fluctuations in the crude petroleum prices without reducing subsidies for the consumers as given in cases of PDS kerosene and domestic LPG. JEL Classification Codes: C32, E60, H20, I38 Keywords:  Petroleum Subsidy, under-recoveries, macroeconomic variables, VAR, Indi

Formal Requirements for Creation of the Oil and Gas Lessee\u27s Interest

The practice of the courts of employing almost as many varying and contradictory descriptions of the nature of the lessee\u27s interest under the usual oil and gas lease as there are petroleum producing states has a historical origin which is clearly traceable. In the latter half of the nineteenth century as each of the known oil bearing states was slowly explored and developed for petroleum, it fell the lot of their courts to solve the complicated legal problems arising in this new and unique industry. Equipped with but little accurate scientific knowledge about the physical behavior of oil and gas, and often with no direct legal precedent, these courts found their task a difficult one. It is not surprising that pioneer oil and gas judges turned for guidance to doctrines of common law real property covering situations seemingly analogous to those confronting them. A gradual, but haphazard, reception of real property terminology into the law of oil and gas followed. But the peg has never really fit the hole. No one term in real property law has been found which for all purposes properly describes the oil and gas lessee\u27s interest. Thus, in casting about for real property precedent to govern one petroleum law question the courts of a state came up with one description of the lessee\u27s interest; however, with reference to different issue to be resolved, the quest for common law analogy often yielded quite another characterization. This tendency, when repeated through the years in the several petroleum producing jurisdictions, has produced a markedly conflicting nomenclature. Thus in cases concerned with formal requirements for the creation of the oil and gas lessee\u27s interest the courts have, at one time or another, described this interest as a determinable fee, a profit a prendre, an incorporeal hereditament, more than an incorporeal hereditament, a free-hold, an interest in land, not an interest in land, a chattel interests a license, not a license, personal property and real property.\u2

Covid-19 And Its Impact On Indian Economy With Respect To Crude Oil

India is one of the largest economy in the world, with population around 1.4 Billion, and average GDP (Gross Domestic product) from 2015- 2019 is around 7 percent, India is the third largest oil importer in the world, with 9.7 percent of the world oil imports, after China and USA, India imports around 80 percent of its oil needs and aims to bring down to 67 percent by 2022, by replacing it by local exploration, renewable energy and indigenous ethanol fuel, but in India there is lack of demand for crude oil and oil products due to Covid-19 epidemic, which made Indian government to imply restrictions, to lockdown of various firms, industries, public and private sector institutions, as health emergency, according to the report of IEA ( International Energy Agency) India’s 40 days lockdown has led to decrease in 30 percent fall in countriesdemandforenergy.Covid-19 is concern for Indian oil producers, as it is the biggest shock since the Second World War,The global economy is expected to enter recessionary Zone in 2020, as countries have shut down there normal business activities, to fight the pandemic led to imbalances in demand and supply of oil prices in the Indian market, Indian oil companies are waiting for the tax reductions and packagesbythegovernment,inthe short term imbalance in oil demand and supply situation. The purpose of the research paper is that, Indian government has a great task to fight against covid-19 as a health emergency and oil prices fluctuations in the year 2020