Sponsor: Competition Commission of India New Delhi. January 2009Team MembersAshok DesaiLaveesh BhandariRamrao MundheMaj. General Bhupindra YadavSpecial Thanks toExperts at the Competition Commission of IndiaPayal MalikThis paper is about the Indian petroleum refining industry. But this industry is extremely open; trade flows are large compared to production. And there is considerable overlap between oil production and refining internationally, and to some extent in India. So we begin with a brief discussion of the international petroleum industry and its components – refining being one of them.Petroleum is extracted from underground reserves; then it is cracked or “refined” into end products for various uses. The petroleum industry thus has two parts: an oil exploration and production industry upstream and a refinery industry downstream. Most oil producers also own refineries. But the reverse is not true; a high proportion of oil is sold to refinery companies that do not produce crude oil. Sedimentary rocks in which hydrocarbons are trapped often hold gas, sometimes in association with crude oil and sometimes alone. It consists mostly of methane, which is lighter than air and toxic. It therefore requires airtight tanks for storage and similarly leak-proof pipes or trucks for transport, which raise its capital costs. Associated gas was flared in early years of the industry; it is still flared at remote or minor wells where the cost of its collection and transport would be high, or often reinjected into the oilfield to maintain pressure which forces oil up to the surface. But where the quantities are large enough, natural gas is mined and traded. It is mainly used as an industrial, domestic and vehicular fuel.Motor vehicles run almost exclusively on petrol and high-speed diesel oil, both fuels derived from mineral oil – although they can be modified to run on certain biofuels. Vehicles are so widely dispersed that they require an extensive distribution system for these two refinery products. As motor vehicle use has spread across the world, it has brought along with it petrol pumps, logistics, storage and supply of fuels. There is thus a third part of the petroleum industry downstream from refineries which distributes the products. It is owned by refineries in most countries. But this is not inevitable. Some countries have distribution chains that are independent of producers and refiners; and in countries which do not have refineries, distribution is undertaken by either local or foreign oil companies. Oil has collected in pools and seeps for thousands of years. The Chinese are recorded as having extracted oil from wells 800 feet deep through bamboo pipes in 347; they used it to evaporate brine and make salt. American Indians used to put it to medicinal uses. Persians, Macedonians and Egyptians used tars to waterproof ships. Babylonians used asphalt in the eighth century to construct the city’s walls, towers and roads. But the easily available oil was not put to any mass use because the crude itself was not a good fuel; it gave out much soot and smoke. A distillation process using a retort was invented by Rhazes (Muhammad ibn Zakariya Razi) in Persia in the 9th century; liquid heated in it vapourized, passed through a curved spout and condensed in another container. The process could be used to make kerosene; but it was more often used to make alcohol and essence of flowers for perfume. It was a batch process, its fuel consumption was high, and it was not equally efficient at distilling kerosene from all crudes. A more efficient and reliable distillation process came out of a series of inventions after 1846. The last invention was the invention of oil fractionation in 1854 by Benjamin Silliman, a professor of science in Yale. It used a vertical column which separated components more efficiently, and which could be used continuously. Oil was first produced in Titusville, Pennsylvania (USA) in 1859 by one
This white paper examines the approaches needed in technology selection including a strategic taxonomy, the decision authorities associated with that selection at all levels in the organization, and considerations for thoughtful sequencing of implementation in alignment with the organizations’ mission, goals and objectives.
The purpose of this project was two fold. One aim was to develop and test methods that local authorities might adopt in assessing and thinking about socio-spatial inclusion/exclusion in anticipation of the introduction and impact of road user charging or work place parking levies. Given concern that such measures might have a disproportionate impact on those already disadvantaged in socio-spatial terms, how might the specifically spatial aspects of social exclusion be defined, measured and monitored? And how might the impact of congestion charging schemes be assessed in these terms? A second aim was to draw in and develop recent work on the connections between mobility and social exclusion in order to enrich analysis of the relation between different kinds of socio-spatial access and forms of social exclusion. By socio-spatial we refer to those forms of inclusion/exclusion that are specifically related to access and mobility.