Introduction

In this Webinar, the speaker has discussed the following:

• Oil Markets – Downstream, Midstream, Upstream
• Indian companies - Downstream, Midstream, Upstream
• What do Indian companies such as ONGC, Reliance, BPCL do?
• Oil production and Storage dynamic (For example oil production can’t be stopped)
• Various oil instruments – WTI, Brent, Nymex
• How much actual use/hedging/speculation in markets
• How does future contango and backwardation work
• Various oil producers and users – Dynamics, OPEC, Non-OPEC, Major producers and consumers in the world
• Growth rates in Oil Production and Consumption
• How do refining margins work? What is Singapore GRM?
• How does valuation work in the oil markets? What parameters used (EV/BOE)
• Regulatory structure in India – who gains and loses when oil prices move
• How does Reliance make high GRMs?
• Basic Valuation of Indian companies – to understand the comparative valuation of oil and gas sector vs the world

Objective

"Think about it, Almost every country depends on Oil to run the economy and a handful of countries manage the oil production and the supply of Oil. Supply is controlled means the price is controlled. Recently due to pandemic, the demand fell sharply and Oil reached $20 per Barrel. Eventually, the US president urged Russia and Saudi Arabia to cut the production so that price can be elevated and lot of potential bankruptcy can be avoided. This seems very interesting to understand.

That's the idea behind this session. In this session we try and dissect the Industry and Overall Working of Oil as an Industry. We look at how the Oil Industry operates and why it is so important in terms of global macroeconomics."