Petroleum Industry
Issues around Kochi-Kootanad-Bengaluru-Mangalore Pipeline Project
In the first week of February, 2016, India’s Chief Justice TS Thakur while passing orders on Kochi-Kootanad-Bengaluru- Mangalore project rebuked the state government of Tamil Nadu and said that: “Such interference in projects of national importance for ‘votes’ is tantamount to a breakdown of constitutional machinery”. The three judge bench ruled that the project must […]
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Fall in Global Oil Prices: Reasons and Implications
In last one and half year, the Global oil prices have fallen sharply. From 2010 till mid of 2014, the oil prices were fairly stable above $100 per barrel, however, currently the prices are below $50 per barrel. Reasons There are several reasons for this decline. Firstly, the demand is low because of weak economic […]
Implications of Deregulation of Petroleum Prices in India
The Government of India has historically subsidized energy with the objective of protecting consumers from international price volatility and providing energy access for its citizens, especially the poor. However, energy subsidies place a heavy burden on government budgets, while often failing to reach their targeted beneficiaries. In June 2010, the Indian government deregulated the price […]
National Exploration License Policy
The dismantling of the APM was followed by National Exploration License Policy 1997, which became effective in February, 1999. Since then licenses for exploration are being awarded only through a competitive bidding system and National Oil Companies (NOCs) are required to compete on an equal footing with Indian and foreign companies to secure Petroleum Exploration […]
India’s Gas Pricing System
India has a complex and heterogeneous gas pricing system mainly composed of two pricing regimes viz. APM (Administrative Price Mechanism) and non-APM (aka. free market gas). The APM gas price is declared by Petroleum Planning and Analysis Cell (PPAC). The non-APM/free market gas is of two types viz. domestically produced gas from JV (Joint Venture) fields […]
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