If you think rising consumption is to blame, hold your horses. According to OPEC estimates, the organisation’s proven reserves are expected to be somewhere close to 900 billion barrels and conventional sources are secure. Contributing close to 77% of all reserves, OPEC is the primary body controlling the world’s major oil sites.
Major members are Middle Eastern sates such as Iran, Iraq,
Saudi Arabia, UAE and Kuwait. Various other regions are also represented in the organisation; countries like Venezuela, Indonesia and Nigeria are among major members as well. Thus, as a holistic approach towards understanding the oil crises spread across the planet, it is important to understand the composition of OPEC first. According to OPEC facts & figures, “The world’s Ultimately Recoverable Reserves (URR) is to continue to increase in the near future. Therefore, the real issue is not reserve availability, but timely deliverability and here enhanced cooperation and dialogue among all parties to ensure security of demand, as well as security of supply.” The report estimates that from 1995-2003, new discoveries had actually improved recoveries by almost 138 billion barrels. This was especially possible due to more advanced extraction techniques & management. By 2020, oil production is likely to cross 1600 billion barrels with reserves close to 3400 billion barrels! On the basis of OEPC’s own data, it can be logically concluded that the oil price dilemma is not necessarily dependent on consumption alone. Various analysts have contended that OPEC deliberately controls production in order to safeguard its own interests in order to maintain a high price point.
While the top ten oil extracting nations produce about 52 million barrels/day, the top ten oil consuming countries together use close to only 50 million barrels/ day. This means that that a good 2 million barrels of crude can be utilised in price stabilisation, especially when volatility is playing havoc with the global economy. It’s technically proven that the world currently produces more oil than it consumes, but uncertainty of oil prices remains. Production has increased by a salubrious 26% as compared to levels in the 1960s. In fact, oil price insecurity can easily be alleviated on the prospects of huge untapped reserves in Alaska, Latin America and Siberia.
“Oil prices are not determined by the ‘real’ supply-demand for oil, it is the ‘anticipated’ supply-demand, which ascertains the value of the product,” says Saikia. As far as the blame game is concerned, the supposedly new oil hungry nations putting pressure on global oil prices, are factually not the raison d etre’ for the anomaly. China, the nation taking up most of the blame, consumes close to 7.2 million barrels/ day however more than half of this (3.8 million) is met by domestic production. US, on the other hand, consumes a preposterous 20.5 million barrels every day, while contributing a miniscule 8.1 million. Even major oil producing countries like Indonesia cannot hold on to prevailing pressure. With the dangers of ‘galloping inflation’ looming, the country is all set to withdraw from OPEC. It’s the most stinging irony with power. Those that hold oil reserves are making life dificult for the rest by constraining production. The problem then is not shortage of oil per se, but rather the concentration of oil resources in a few hands, which are failing to see beyond their own interests towards the larger good of the planet.
Major members are Middle Eastern sates such as Iran, Iraq,
Saudi Arabia, UAE and Kuwait. Various other regions are also represented in the organisation; countries like Venezuela, Indonesia and Nigeria are among major members as well. Thus, as a holistic approach towards understanding the oil crises spread across the planet, it is important to understand the composition of OPEC first. According to OPEC facts & figures, “The world’s Ultimately Recoverable Reserves (URR) is to continue to increase in the near future. Therefore, the real issue is not reserve availability, but timely deliverability and here enhanced cooperation and dialogue among all parties to ensure security of demand, as well as security of supply.” The report estimates that from 1995-2003, new discoveries had actually improved recoveries by almost 138 billion barrels. This was especially possible due to more advanced extraction techniques & management. By 2020, oil production is likely to cross 1600 billion barrels with reserves close to 3400 billion barrels! On the basis of OEPC’s own data, it can be logically concluded that the oil price dilemma is not necessarily dependent on consumption alone. Various analysts have contended that OPEC deliberately controls production in order to safeguard its own interests in order to maintain a high price point.While the top ten oil extracting nations produce about 52 million barrels/day, the top ten oil consuming countries together use close to only 50 million barrels/ day. This means that that a good 2 million barrels of crude can be utilised in price stabilisation, especially when volatility is playing havoc with the global economy. It’s technically proven that the world currently produces more oil than it consumes, but uncertainty of oil prices remains. Production has increased by a salubrious 26% as compared to levels in the 1960s. In fact, oil price insecurity can easily be alleviated on the prospects of huge untapped reserves in Alaska, Latin America and Siberia.
“Oil prices are not determined by the ‘real’ supply-demand for oil, it is the ‘anticipated’ supply-demand, which ascertains the value of the product,” says Saikia. As far as the blame game is concerned, the supposedly new oil hungry nations putting pressure on global oil prices, are factually not the raison d etre’ for the anomaly. China, the nation taking up most of the blame, consumes close to 7.2 million barrels/ day however more than half of this (3.8 million) is met by domestic production. US, on the other hand, consumes a preposterous 20.5 million barrels every day, while contributing a miniscule 8.1 million. Even major oil producing countries like Indonesia cannot hold on to prevailing pressure. With the dangers of ‘galloping inflation’ looming, the country is all set to withdraw from OPEC. It’s the most stinging irony with power. Those that hold oil reserves are making life dificult for the rest by constraining production. The problem then is not shortage of oil per se, but rather the concentration of oil resources in a few hands, which are failing to see beyond their own interests towards the larger good of the planet.
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Peter Mukreaja’s dreamchild INX media and one can’t help but bite the tongue. A good 55% stake in the company is held by firms like Temasek Holdings, New Silk Route Partners, New Vernon Private Equity Fund, Employee sweat equity, et al. A cursory glance at NDTV Networks’ shareholding pattern and you find companies like Lehman Brothers, Goldman Sachs, CSFB and eight others jointly holding as much as 24% stake in it. Ashmore Investment Management owns 49% stake in Digicable Network. Then again, what’s common among companies like B.A.G. Infotainment, Times Innovative Media, Hathway cable, UFO Moviez and India TV, besides the fact that they operate in the media & entertainment space. They all have private equity (PE) firms’ expressing their newly found love for them, by buying stakes in these companies.
celebrating excellence collectively that resonates first with the market place, then peers & finally all who value great communication.” Fearlessness, Joshi reckons, is his middle name because he approaches his work with originality and individuality which emerges from instinct, intuition and insight. Its not a dikhawa, posturing or fake bravado. “I came to this line with nothing. I did not come with money, influence or big-ticket background of a reputed Public School or ameer baap. I came, however, with the greatest and most expensive gift a parent can give to his child – culture, values, redefined taste in artistic things and above all integrity. The guts to hold on tight to your legacy and not sell out to fame or fortune, come what may.”
and low-production cost, India has attracted global companies to scout for assets as a low-cost alternative. “India is well positioned to be a buoyant future for generics. While there are potential downsides to consider, India is becoming more pronounced as a global strategic asset for developed world businesses. Foreign companies should be looking to India as a platform for building their European & the US markets,” agrees Brian Tempest, former Chief Mentor and Executive Director, Ranbaxy.
Banglore was on fire during the opening spectacle of the hyped Indian Premier League (IPL). The cheerleaders from America, stilt walkers from Holland, bubble dancers and acrobats performing on 250,000 watts of music… left the crowd awestruck. Many in the crowd were gesticulating excitedly while on their mobile phones, exchanging notes with friends & family watching the tamasha cricket live on the idiot box in pubs, clubs or their homes. You couldn’t help but flashback to November 2007, when Subhash Chandra’s Indian Cricket League (ICL) played its first match. It generated about 1/10th of the excitement that IPL did. Is this a harbinger of ICL’s impending doom? The natural response will be in the affirmative, keeping in mind the present frenzy around IPL and its association with biz & Bollywood biggies. But then there are many who are mooting for ICL instead. 4Ps B&M presents a reality check of the war between underdog ICL and current hot favourite IPL.
is a platform to hone their skills in the cricket battlefield. The best of these fresh talent may be picked up for the national cricket team (that is if BCCI agrees). IPL however is charged with cashing in on the popularity of existing stars. Lalit Modi argues, “It’s not that we have only star cricketers and we are not giving chance to fresh talent. It’s mandatory for each team to have at least four under-19 players. Plus, what’s wrong in having star cricketers in the team? Even EPL has star players in the team.” Be that as it may, the star players in EPL clubs are reckoned as ‘stars’ because they are playing for their respective clubs and not the other way round like IPL.