Burgeoning world around energy surge

hello everyone

today’s topic is energy surge

but before i begin a kind of a formal

lecture i i

have three questions to pose uh as a

college student i’m sure you must have

thought of buying

a motorcycle so when you go to buy a

motorcycle what’s the first thing that

comes to your mind

it’s it’s mileage and

eventually you end up selecting a bike

which is made in japan

so this is first question why japan why

japanese

auto is is more popular the second

question is why

hitler lost the second world war and the

third question

is who dislodged the united kingdom

as a superpower and why who was behind

it

the answer to this all three question is

it’s a simple

black sticky element that comes out of

the

earth it’s called hydrocarbon it’s oil

petrol diesel kerosene whatever we call

by name it’s oil

oil has defined last 200 years of events

whatever you look at it economics

political social

even cultural also so

i’ll take you through the exciting

journey of oil which determines sure and

my

life which determines my monthly budget

and which is going to determine

the the stability of the earth which

will determine

the global warming issues and eventually

you are in my

life quality so it all started somewhere

in 1860s 1850s when a young

kid in pennsylvania realized there is

something some some important substance

coming out of the earth

has uh that element which can be used as

fuel

that young person was john d rockefeller

in the early 20s

he realized this can be sold so he

started selling

oil to the local municipal corporation

which is pennsylvania

and then he realized he can expand the

market then market grew eventually his

business also

uh grew he multiplied it started sailing

to various states and the united states

of

america but the problem in that was

he had no big containers to sell oil

so he created a manufacturing facility

to create

those containers but then he realized he

don’t have vehicles to

carry the fuel then he built those

vehicles

then he realized the vehicles are still

small to

uh take it across to the other other end

of the united states of america

so that he thought of railway and he

built railways so in 1892

this this john d rockefeller was

uh one of the largest industrial

entrepreneur in the world

in that year in 1892 his wealth

was double the size of what will get his

today

so you can imagine the size of the

empire but around the same time

the united states of america realized if

any individual if he

is allowed to grow exponentially he can

challenge the state he can challenge the

government machinery

so there came the bill by a republican

senator called john shearman

and he put up a bill in the congress and

demanding

uh slicing of the companies and the bill

even today which is applicable it’s

called anti-trust

act it basically controls uh

big industrial houses for from from

spreading their power

beyond uh uh or challenging the state so

this is the

history of the first oil conglomerate

and he built up companies like standard

oil

exxon mobil you name the big company it

is from the

john rockefellers staple so it’s around

the same time there was another young

person in the united states of america

he was thinking of developing

engine he was successful around the same

time

his name is henry ford there were two

brothers in united districts of america

who were thinking of using

uh or developing a machine flying

machine

based on the theories uh by leonardo da

vinci

so they are the wright brothers they

they were successful in

developing aeroplanes so there was

another other side of the continent in

in

across the atlantic there was another

young person who was thinking of

developing engines

a two-stroke engine his name is uh

rudolph diesel so he developed uh engine

so it was around between 1900

to 1950 1930 it was the era

which which saw evolution of oil in

various sectors in america

in europe so it was around the same time

there was a young person in

the united kingdom he realized its time

has come now

it changed our warships from coal uh

using coal as a fuel

to oil or he was just emerging

uh during those days this gentleman

is very well known and his visionary act

of of converting all ships or warships

from

coal uh fuel to oil made united

kingdom a kind of a superpower in the

first world war why united kingdom won

in the super

in the first world war is this mass act

and this person is none other than

winston churchill

he thought of converting united kingdoms

all ships

into oil uh into oil indians basically

and that was the differentiating factor

uh in

the first world war which uh friends and

allies won

because of this invention so this was

over around 1999 1920

and this was also the year when ottoman

empire was breaking up

in 1919 ottoman empire one of the

largest empires in the world huge

kingdom uh it broke into many pieces

and those powers who were controlling

the world they decided to

chop that empire

into pieces which can be governed by

their own individual

uh nations so this entire ottoman empire

was cut into various pieces

some some pieces some uh land uh

portions went to italy

france also uh got some area something

went to

united kingdom and this was the time

what we call now west asia came into the

being there are nations like kuwait

saudi arabia

you name it iran iraq they were all part

of one kingdom for ottoman empire

and all these things were coming out

after uh started coming out after 1990

1920

so it was around the same time a small

trader in saudi arabia realized that

there is there is a lot of oil

in saudi sands there was no saudi arabia

then so the arabia came into being

much lighter and this person who who was

instrumental in in

uh extracting oil from the sand uh he

was a he was of

a merchant uh uh rise he had that

mercantile mentality

he started selling uh this uh

oil to various uh nations various

traders who were

doing business in that particular area

the

the the importance of this person and he

controlled it and he he was nothing but

a kind of a

word lord he was not a king he was not a

ruler then

but he started controlling large amounts

of sand

area in that particular territory and

he started selling that oil and he is

the person who eventually

uh became the king of saudi arabia

muhammad bin ibn saud is his name

so he he he never understood the

importance of

oil but he understood the importance of

money and the first one to approach

him were americans he uh

was the person uh uh that the territory

was being ruled

by uk uh jordan was a big state jordan

was part of the united kingdom and

everything was under that particular

kingdom

but somehow it’s called a nature’s fate

or a coincidence or a small mistake

whatever it is a united kingdom uh was

second in understanding importance of

oil

by the time uk realized what they have

missed it

uh this person called muhammad bin ignac

had signed

a contract with a nation called

united states of america so it’s very

interesting

when when a second world war was in full

swing 1939 second world war began

so in 1944 uh president of the united

states

uh personally went to see this this

illiterate man

who was sitting on huge oil reserves to

to

sign oil contracts and the united states

of america was so successful in giving

him

whatever he wanted whatever he wanted he

wanted

everything he wanted huge gold he wanted

personal uh

aircraft uh he he wanted a

president of the united states franklin

roosevelt roosevelt

he was impaired he couldn’t walk so he

had an automated chair which could uh

be taken like a small vehicle so he was

mesmerized so the king was mesmerized by

that

so this was also offered by offering

everything united states of america

ensured that the entire

oil contracts come to them and they were

successful

that contract happened in 1944 to

60-year contract

so you can imagine the power united

states of america could have

managed to control with them and this

exactly is the

answer to the question which i had posed

why uk lost

its position at the superpower the

answer is oil

why japanese you prefer answer is oil

why basically the whole history of

violence

nations and hitler basically lost the

second world war it the answer is oil

because by then united states of america

has they had realized the importance of

oil they have converted

many machines many war weaponry into

oil related vehicles somehow germany was

deployed of oil

so so oil has been a constant factor in

whatever things you are looking at it

and

impacting you and my life since 1956

1957

till date so whatever uh has happened

during this last 200 year or so

it’s it’s all because of oil oil created

wars oil created peace

oil basically broke nations oil even

created the terrorism

in it so basically if you look into the

history part of it

uh terrorism is a byproduct of energy

wars as i said

then we come down to the 20th century

so it’s it’s again uh it’s it’s all

about

oil so i as we look at the world

what are the two three distinct uh uh

partitions or the dividends we can

divide the world into uh many will

look at it africans or poor or reach and

these and that

but the world is divided according to me

in only two

sets of uh groups the

nations having enormous oil reserves or

energy reserves

and the countries having no oil reserves

so the

question answer to the first question

comes here that is about japan

why japanese bikes are fuel efficient

because japan was always deprived of

oil and japanese engineers japanese

engineers were forced to

design engines in such a way that they

can extract maximum mileage from the

whatever oil they have

as against their american counterparts

if you look at american

automobile hammer is not designed by any

other company american

american vegan you name the what you

call a gaslamp

petrol it has its origin in america

why so because america never had an

issue about

non-supply of oil it was always abundant

oil for americans so they could afford

to have a very less mileage and very

powerful vehicles

so that and japan is not the case so we

look at it at this this crisis as

a nation having major issues having oil

reserves and we don’t have oil users in

1960s

india discovered oil in bombay high

in anchorage in gujarat something

in northeast and the engineer again i’ll

give you a very interesting story about

it

the engineer who was uh extracting oil

in north east he he had deployed

elephants to

basically go deep into the jungle

digging work was going on

and bring back those elephants and with

the

heavy machinery and the work and he used

to shout

at those elephants and those workers who

were handling those

animals and the shout was like dick boy

dick

the digging was most important part was

the most crucial part in oil because if

it is not controlled

it just explodes and it fires and it

fires into balloon and then

it’s it becomes uncontrollable so the

big boy dig

is what today’s dick boy is the the the

city

name big boy the origin in this big boy

dick story

so we always had this problem uh in in

procuring oil

we have very limited resources so we

were historically always dependent on

west asian nations and

and those who can supply us all from

various resources so as of now as we

stand today

we should talk about the future the

position is that

82 of oil whatever we use in

today’s india is imported our biggest

expenditure

indian government spends huge money the

single largest expenditure we have

is an importing oil because out of 100

liters of oil whatever we use

82 is direct import because we don’t

have oil

reserves in our own country and i’ll

tell you some interesting numbers to

look at it

as of now our daily consumption of oil

is something like 4.2 million barrels a

day

4.2 billion it comes to something like

40 lakh 20 000 barrels a day just

imagine

a country of 130 uh crore people are

using this much oil

60 dollars a barrel if it is uh cost we

assume that you can imagine how much

money we spend on buying oils

so one dollar change in oil prices

is either huge reward for the national

government or a major debt because

something it comes to like one dollar

change

if oil prices go up by one dollar uh

indian government

uh um additional cost goes up by four

thousand crore plus

so that much difference uh our economy

uh

fees when oil prices go up and down so

according to

international energy association iea

which is a recognized body of energy

markets it has predicted recently

india’s oil demand it says by 2040

this is something uh you all should be

worried about

by 2014 india will be requiring

oil to the tune of 80.7

lakh barrels this is like 8.7 million

barrels a day

so this is exactly double the size what

we are consuming today

by 2040 we will be bigger than china in

population

our oil consumption will be exactly

double and

currently we have 80 to 82 imports but

by 2040 our imports will be to the tune

of

90 so you can imagine the challenge

india has to face

so even if you have huge other resources

like solar

battery wind energy whatever atomic

energy

even if we try these things our oil

demand is going to go

up because hydrocarbons so far they

don’t have any

strong portable convenient alternative

so oil demand

even with alternative energy sources is

going to go

up so 80 when india reaches that level

i’ll tell you again very interesting

statistics very interesting perspective

india will be consuming 25 percent of

daily oil production in the world in

so one-fourth of oil production

then in the world 2014 will be consumed

by just only one nation

that is uh called india as of now till

2018

that that kind of a special

mention was reserved only for the united

states of america which was consuming 26

percent of oil

but five percent of the population

consuming 26 percent of oil

in the united states of america produces

industrial output has industrial output

to the tune of 25 percent of the

world so you can imagine the challenge

where have to go and

how much development we have to think

about because if you want to

consume that kind of an oil the

financial

pressure it will add to indian x checker

that the pressure it will add to

environmental challenges the pressure it

will add to uh

young engineers and students like you

and me this is going to be a real major

issue so unless we understand the

significance and the size of this issue

we can’t think about economic progress

we can’t think about uh

environmental uh challenges and overall

development

so this is the overall oil story

my last point will be from today onwards

start looking at

oil as a major uh i mean i’ve been to

various oil related think tanks in the

world

unfortunately there are not many indian

students who are going for this this

career we have a excellent institute in

dehradun which which talks about

oil excavation oil engineering and and

oil handling of oil related machinery

but again there are not many

maharashtrian students students from all

over the world come to that institute to

study oil

engineering so my humble request will be

from here onwards

even few of you can think of looking at

it

oil engineering oil excavation and those

related issues

as a career option that will widen our

own

nation’s horizon in addressing these

issues

and that’s what we need now because we

are a completely oil dependent

economy and if you don’t understand the

oil dynamics

understanding other issues will be

extremely difficult thank you