Petroleum Case Study

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INTRODUCTION What is petroleum? • A thick, flammable, yellow-to-black mixture of gaseous, liquid, and solid hydrocarbons that occurs naturally beneath the earth's surface, can be separated into fractions including natural gas, gasoline naphtha, kerosene, fuel and lubricating oils, paraffin wax, and asphalt and is used as raw material for a wide variety of derivative products. • The word petroleum comes from the Latin petra, meaning “rock,” And oleum, meaning “oil.” Primary use of petroleum: • Originally the primary use of petroleum was as a lighting fuel, once it had been distilled and turned into kerosene. When Edison opened the world's first electricity generating plant in 1882 the demand for kerosene began to drop. • However,…show more content…
• The oil marketing companies have reduced the price of non-subsidised liquefied petroleum cooking gas (LPG) by Rs 43.5 (US$ 0.69) per cylinder. The companies have also reduced jet fuel rates by 12.5 per cent, the sixth straight reduction in prices since August 2014. • Reliance Industries Ltd (RIL) and Mexican state-owned company Petroleos Mexicanos (Pemex) have entered into a memorandum of understanding (MoU) for cooperation in the oil and gas sector. • GAIL Global USA LNG LLC (GGULL) has signed an agreement with the US-based WGL Midstream Inc for sourcing gas required to produce 2.5 MT of liquefied natural gas (LNG) a year at the Cove Point Terminal in Maryland, US. • State-run oil firms including Oil and Natural Gas Corp (ONGC) will invest over Rs 76,565 crore on the project expansion during 2015-16, up 5 per cent over the previous fiscal. • ONGC, the nation's most profitable company, will see its capital expenditure rise to Rs 36,249.37 crore as compared with Rs 34,813 crore in the current fiscal, according to the Budget 2015-16
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