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