Monday, August 2, 2010
Oil business is always an interesting stuff to study for its volatile nature and high potential in terms of economy. Anything can happen in Oil business, this can be realized by the BP issue or shut down of few American & European refineries. For some it's much more than Gold like Reliance Industries Ltd. who posted Rs.4851net profit in Q1.
British Petroleum is seeing their record level dip in commerce. BP appointed it's new CEO after the Mexican oil leak.So far BP spent $80 billion educating the world how serious a distaster in oil industry be!
Oil compaies under public sector are facing tough fight. Price celing on LPG, Kero costed them half a lakh crore so far and it is widening with ris in crude prices. Operating plants whose margins per barrel are hardly in cents is a huge burden to the nation. A single breakdown of the refinery would damage the margin figures.
Two new refineries are entering into the scene, one in Punjab by Mittal in collaboration with HPCl, other one in Bina by Arab investors with Bharat Petroleum. It has been atleast a decade when people started discussing on end of crude resources, but investors are quite comfortable inspite these discussions.
Moment coal can replace crude in economic sense, senario will change. Companies which are ready for transformation and working on the same will benifit. Ultimately, the one who processes cheaper inputs and adds the highest value will survive in the market.
Oil compaies under public sector are facing tough fight. Price celing on LPG, Kero costed them half a lakh crore so far and it is widening with ris in crude prices. Operating plants whose margins per barrel are hardly in cents is a huge burden to the nation. A single breakdown of the refinery would damage the margin figures.
Two new refineries are entering into the scene, one in Punjab by Mittal in collaboration with HPCl, other one in Bina by Arab investors with Bharat Petroleum. It has been atleast a decade when people started discussing on end of crude resources, but investors are quite comfortable inspite these discussions.
Moment coal can replace crude in economic sense, senario will change. Companies which are ready for transformation and working on the same will benifit. Ultimately, the one who processes cheaper inputs and adds the highest value will survive in the market.
Image Courtesy: tatumba.com
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