End-Semester Examination July, 2013

Name of the Program: EMBA(Oil & Gas)

Course Code MDSO-821
Course Title: Petro Economics
This question paper has 3 pages.

Semester

III

Duration: 3 Hours
Max. Marks

: 100

Section- A
(All parts of this question are Compulsory)
(10*2=20)
Q.1.
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)

What are the tools for measuring exploration efficiency?

Mention the emerging types of alliances relevant to the upstream oil industry.
Define asset based management system.
What are the key modes of oil transportation?
Write a note on OPEC.
Explain the concept of QuikTrip Operating Model.
Explain the role of Platts & Argus.
What are the principles underlying Official Selling Price (OSP)?
Discuss the concept of e-GasStation.
Explain Import Parity Price.
Section-B
(Attempt any FIVE questions from this section)
(5*4=20)

Q.2. Discuss the process of marketing of transportation fuels in India.

Q.3. What are the strategies identified for E&P activities under the current Five-Year Plan?
Q.4. What are the key trends that are pushing for E-trading in the oil and gas industry?
Q.5. The sedimentary basins of India have been classified into which categories?
Q.6. Discuss the growth of refining facilities in India.
Q.7. Explain the concept of Super Major Theory.

Section-C
(Attempt any FIVE questions from this section)
(5*6=30)
Q.8. The growth of marketing and distribution system for petroleum products in India has passed
through three different phases. Explain these phases.
Q.9. Compare Administered Pricing Mechanism (APM) with Market Determined Pricing
Mechanism (MDPM).
Q.10. Analyze the recent trends in LPG marketing by PSUs.
Q.11. Restructuring requires an integrated approach. Discuss.
Q.12. Write a note on New Exploration & Licensing Policy (NELP). What have been its
limitations?
Q.13.Explain how companies can reduce the cost of LNG.
Section-D
(Compulsory Section)
(30)
Q. 14. Read the following news and answer the questions that follow:

Oil companies to block multiple LPG connections from June 1

Christin Mathew Philip, TNN | May 18, 2013, 04.50 AM IST
CHENNAI: Come June, LPG customers with multiple connections, who fail to submit a Know
Your Customer (KYC) form, will have their connections blocked by the oil companies. This is a
part of the oil companies' move to weed out multiple connections and ensure that all households
have only a single connection.
Although the deadline to submit the form was December 31, many customers with multiple LPG
connections who failed to submit it, continue to get additional LPG cylinders at a non-subsidised
rate of 836.5. But oil companies have now decided that no cylinder will be provided to such
customers beginning June 1. This follows findings that many consumers enjoy multiple
connections even as dealers have been able to cater to only 70% of the demand.
Moreover, the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000,
rules that a person with an LPG connection under the PDS shall not use more than one cylinder.
At present, sources say that nearly 20% of the LPG customers in the state are yet to submit their
KYC forms. "The lists of these customers are put up on the websites of oil companies. Such
customers need to submit their KYC details along with their ID proof immediately to their

distributors

to

receive

their

quota

of

subsidised

cylinders,"

release

said.

Some residents asked for more clarity on KYC procedures. "Some customers are unaware about
KYC procedures. But instead of giving cylinders at non-subsidised rate, companies are now
blocking the connection itself," said Malathy Sethuraman, a customer in Avadi.
Officials said they have classified the multiple connection holders into Same Name Same
Address(SNSA) and Different Name Same Address (DNSA) categories. A senior Indane official
said: "We have received KYC forms from 2 lakh DNSA and 8,000 SNSA from the state."
Indian Oil Corporation is currently the biggest provider of LPG in the state with 79 lakh
consumers, while Hindustan Petroleum Corporation Ltd has 20 lakh consumers and Bharat
Petroleum Corporation Ltd has 35 lakh connections. Data from Census 2011 shows the use of
LPG in the state has increased by 120%.
(i)

(ii)

Under the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order,
2000, rules a person with an LPG connection under the PDS shall not use more than
one cylinder. Explain how the government can ensure the implementation of this
policy.
Explain the reasons for the subsidization of LPG by the Government. Simulate the
scenario where the government removes all subsidies and explain its economic
impacts.