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EnergySector AnalysisAn NSC2 InitiativeIntroductionEnergy India ScenarioValue Chain Major PlayersCompetition ScenarioPolicy Framework Oil &GasChallenges CoalFuture OutlookOilGasCoalCoalOil & GasCoalOil & GasOil & GasOil & GasCoalCoalEnergy Sector comprises of industries involved in with regard to energyProduction Processing Trading DistributionSaleEnergy in our perspective comprises ofPetroleum and allied productsNatural gasCoalElectricity*Nuclear and other non-conventional sources of Energy* Power is covered under a separate sectorIntroductionOil production Most commonly used term to report is barrel or bbl

Introduction Key TermsUnitEquivalentmmcf1 million cubic feetBcf1 billion cubic feetTcf1 trillion cubic feetBtu(British Thermal Unit) 970 cubic feetGas production is described in terms of standard cubic feet or cfUnitEquivalent1 bbl42 US gallons or 120 litres1 mbbl1000 bbl1 mmbbl1 million bbl1 Bbbl1 billion bblE&P companies often describe their gas production in units of barrels or tonnes of oil equivalent1 boe (barrels of oil equivalent)= 6040 cf of gas1 toe (tonnes of oil equivalent)= 7.4 boe of gastoe can be further used to convert it into equivalent for electricity, energy (joules) and renewable energy equivalent1 toe = 45.217 giga joules of renewable energy

Energy India Scenario

Total Energy Consumption in India 2011India 4th largest consumer after US, China & RussiaPer capita energy consumption 565.5 kgoe/person-annum - lowest among comparable economiesPrimitive sources of energy (biomass, wastes, wood, etc) still counts for 23% of total energy consumption; which equals petroleum products41% of total energy need is derived from coalRenewable and nuclear counts for 5%Industries constitute 40% of total energy consumptionPower sector is the fastest growing energy demand 23% to 38% between 1990 2009Transport sector energy demand 8% in 1990 to 14% in 2009With 17% of world population, India has just 0.35% of oil reserves & 0.6% of natural gas reserves

International Energy Statistics - 2013, US EIAEnergy use per capita, World Bank 2012

Indias growing dependence on foreign energy sources has serious policy implications for its energy securityCoal-centred energy mix and rising carbon emissions will create serious challenges for Indias sustainable developmentIndia has substantially low per-capita energy consumption and per-capita carbon emissions in comparison with other countriesIndia must expand its energy supply to provide universal access to modern energy and maintain economic growth

Value Chain - OilExplorationProductionTransportIntermediate StorageRefiningIntermediate StorageMarketing CoConsumersCrude OilPetrolDieselLubesChemicals, etc.Bulk Carriers,PipelinesRetail,Commercial,IndustrialUpstreamDownstreamOilProductionProduction World 91.25 million barrel / dayProduction India - 0.89 million barrel / dayTop three oil producing nationsRussiaSaudi ArabiaUSAIndias Rank 23

DemandDemand world 90.3 million barrel / dayDemand India 3.3 million barrel / dayTop three oil consuming nationsUSAChinaJapanIndias Rank 4

*Medium-Term Oil Market Report 2012, International Energy AgencyValue Chain Oil Exploration & Production4th largest importer of oil and petroleum products5.5 billion barrels of proven oil reservesProduction - 1 million barrel/dayDomestic Production 47% onshore & 53% offshore75% of total requirement met with imports

Production v/s Consumption 2001-11 (in thousand barrel/day)Source: International Energy Statistics - 2013, US EIADGH, ONGC, OIL

Domestic Production Region wise distribution - 2010

Indias oil supply trend (million barrel / day)Value Chain Oil DownstreamRefining breaking down of petroleum hydro-carbons into usable components like petrol, diesel, chemicals, lubricants, etc.

Refining a major industry in IndiaLargely privately ownedAs of April 2012, Indias refining capacity was approximately 4.2 million barrels/dayThird largest in Asia after China and Japan11th five year plan target 4.9 million barrels/day by 201212th five year plan target 6.2 million barrels/day by 2017Due to growing domestic demand, export-oriented refineries were converted to domestic refineries in 2009, which helped to ease a domestic shortage of petroleum products. Kerosene and LPG, are still imported.Worlds largest and most complex refinery was commissioned by Reliance Industries Ltd.

India a net exporter of petroleum products since 2001USD 40 billion worth of exports in 2010-11, comprising of 16% of total exportsIn FY 2009/10, 90% of Indias refined product exports came from RIL and EssarMajor exports: naphtha, motor gasoline, distillate fuel oilKey exporting nations: Singapore, the UAE, and Indonesia

Refining Capacities April 2012Source: : International Energy Statistics - 2013, US EIAPPAC, 2012 Value Chain Oil TransportIndia's crude oil pipeline network spans 6400 km and has a total capacity of 1.9 million barrel/dayApproximately 30 terminalsPipelines run from ports and producing areas (particularly from Gujarat) to major oil refineries in Gujarat, Mathura, Uttar Pradesh, and Haryana On the eastern part of the country, pipelines run from West Bengal to the Paradip oil refineryThe Indian Oil Corporation controls and operates the oil product pipelines and supplies most of the oil products going to the domestic market of north and northeast.IOC plans to build additional product lines to move supplies from refineries to growing demand centres, such as Jharkhand, Chhattisgarh & Orissa In 2005, the Indian Government decided to set up strategic storage of 37 million barrels of crude oil at Visakhapatnam, Mangalore, and Padur through Indian Strategic Petroleum Reserves Limited (ISPRL)In 2011, the Government planned to scale up reserves by 132 million barrel by 2020Source: International Energy Statistics - 2013, US EIA

Value Chain Natural GasHousehold,CommercialIndustrialPipe lines,Gas TankersExplorationProductionProcessingStorageConsumerMarketingTransportNatural GasLiquefied GasBotteling,Pipe supplyUpstreamDownstreamValue Chain - Natural Gas Exploration & ProductionSource: International Energy Statistics - 2013, US EIABP Statistical Review of World Energy, 2012Production World 3.36 trillion m3Production India 42 billion m3Top three producing nationsUSARussiaIranIndias Rank in Production 19Global share in gas reserve 0.6%80% supply comes from offshore rigs

LNG consumption & production patternIndias Rank in Import 628% of requirement is imported (for FY 2011-12)70% of requirement to be imported by 2017, due to falling domestic supplyAll imports via two facilities in Dahej (capacity 10 mtpa) & Hazira (3.6 mtpa) owned by ShellKochi (5 mtpa) & Ratnagiri (1.2 mtpa) facilities nearing completion

KG-D6KG-D6 production was expected to compensate for maturing fields Production started according to plan in 2009, it has since dropped significantly due to technical problemsIn July 2013, production was at 14 mcm/d, instead of the projected 80 mcm/d, which would have equalled 46% of the total domestic supply

Value Chain Natural Gas DownstreamSource: International Energy Statistics - 2013, US EIAMinistry of Petroleum & Natural gas 2012TransportationIndias gas transmission infrastructure is mainly concentrated in the northern and western partsThe entire network comprises around 13000 km.GAIL is largest operator of cross-national pipelines with a network of almost 8 500 kmThe sector was opened to private investment in 2006, Reliance Gas Transportation Infrastructure Limited (RGTIL) built the East-West pipeline of about 1500 km Gujarat State Petronet Limited (GSPL) owns and operates 3000 km comprise mainly regional pipelinesApproximately 15000 km of additional pipelines are to be put into operation during the 12th Five-Year Plan by 2017

ConsumptionPower generation is the largest consumer for LNG constituting 51% of the total consumptionFertilizers come second with 31%14% is used for direct consumption by industries and domestic and commercial usage for cookingState owned marketing companies IOCL, BPCL & HPCL bottle LPG for domestic & commercial usageTwo largest gas consumers i.e. Power & Fertilizers are most price sensitiveAffordability is considered high for industry, captive power production, refining and petrochemicals,Value Chain - Coal ExplorationMiningWasheriesTransportMarketingConsumersBulk ConsumersTransportUpstreamDownstreamValue Chain Coal Exploration & ProductionProductionProduction World 7695 million tonneProduction India 588.5 million tonneTop three Producing nationsChinaUSAIndiaIndia ranks 5th in world for global reserves with 66.8 billion tonnes reserves in 2010

Jharkhand, Chhattisgarh, and Orissa account for approximately 70 percent of the country's coal reservesOther significant coal producing states include West Bengal, Andhra Pradesh, Madhya Pradesh, and MaharashtraCoal production has more than doubled between 1990 and 2011. Almost all of the country's coal mines are opencast (less than 1,000 feet deepIn 2010, Indias coal import stands at 14% of total consumption

Coal consumption & production patternCoal import & productionSource: International Energy Statistics - 2013, US EIABP Statistical Review of World Energy, 2012Value Chain Coal DownstreamSource: International Energy Statistics - 2013, US EIAMinistry of Coal 2011Washing / BeneficationIndian coal is typically of poor quality, with an average heating value of about 4 500 kcal/kg, compared to over 6 000 kcal/kg for most internationally traded coalsIt is high in moisture content, ash content, but is low in sulphur contentVery little is suitable for iron and steel makingBeneficiation or washing is typically necessary to reduce ash contents and make coal more suitable for consumers The washing of coal provides more consistent quality and increases energy efficiency of conventional pulverised coal combustionConsumptionDemand to increase from 280 Mtoe 2009 to 618 Mtoe in 2025, surpassing USAThe power sector consumed over 73% of Indias coal in 2009, which increased notably from a share of 61% in 1991The second largest consumer was the steel and iron industry, representing 6% in 2009 The cement industry was the third largest coal consumer, using 2% in 2009Demand for industry sector has seen a significant dip due to its shift from coal to other forms of energy like electricity, LNG, etc.Consumption DriversThe increase in demand will be due to rapid growth in Power sector. Since Indias power sector is mostly dependent on coal, it will continue to be largest consumer of coal and contribute largest share in increase in conspumtion.Major Players - Oil & Gas

Source: IEA: Understanding Energy Challenges in India 2013Competition Scenario - Oil & GasMinistry of Pertroleum & Natural Gas (MoPNG)Oversees the entire oil and gas sector, ranging from E&P, refining, supply distribution to marketing and pricingInitiates and implements the five-year plans for the oil and gas sectorOversees import, export and conservation of petroleum products and natural gas Regulates the allocation of gas under the Gas Utilisation Policy and Production Sharing Contracts (PSCs)Supervises eight statutory bodies and 14 PSUs Responsible for development and implementation of pricing policy and for supervising the marketing of biofuels

The Directorate General for Hydrocarbons (DGH) Represents the Indian government at the Management Committee meetings for the Production Share Contracts Monitor the countrys Exploration & Production activities and Coal Bed Methane projects Collect data from all lessees/licensees to monitor the government revenues from upstream projects

The Petroleum Planning and Analysis Cell (PPAC) Gathers and analyzes oil & gas related data to monitor market trends in prices and import / exportAdministers the subsidies on kerosene and domestic LPGSource: IEA: Understanding Energy Challenges in India 2013Competition Scenario - Oil & GasONGC (Oil & Natural Gas Corporation)Largest oil and gas exploration and production company Produces around 69% of India's crude oil (equivalent to around 30% of the country's total demand) and around 62% of total annual natural gas demandOwns and operates over 11,000 km of pipelines in the countryONGC Videsh is a wholly owned subsidiary of ONGC dedicated for investment in oil & gas resources in foreign countriesMangalore Refinery and Petrochemicals Limited is a dedicated refining & petrochemical plant operated and jointly owned by ONGCONGC Tripura Power Company is JV between ONGC & Govt of Tripura for power generationGAIL (Gas Authority of India Ltd )Distribution and transport of Natural Gas, Liquid Hydrocarbon, Liquefied petroleum gas, PetrochemicalsLately it has diversified into City Gas Distribution, Exploration and Production, and Electricity GenerationOIL (Oil India Ltd)Oil & Gas Exploration and production company with focus on in-shore fields in Northeast and RajasthanProduced 3.6 MMT crude oil in 2011Upstream Exploration & ProductionSource: IEA: Understanding Energy Challenges in India 2013Competition Scenario - Oil & GasOil Marketing Firms IOCL, HPCL, BPCLEnjoy near monopoly in retailing petroleum products in IndiaOwn and operate refineries, LPG bottling plants, bulk storage facilitiesControl distribution and sales of petrol, diesel, LPG and lubricantsIOCL is the largest amongst marketing firmsDown Stream - Oil MarketingSource: IEA: Understanding Energy Challenges in India 2013Competition Scenario - Oil & GasCairn India - major reserves in Rajasthan, it produced 149103 barrels per day (b/d) or about 20% of Indias domestic crude in FY 2010/11, sold a controlling stake to UK-based Vedanta in December 2011Reliance Industries (RIL), has emerged as a prominent player in both upstream and the refining sector since the discovery of considerable gas reserves in the Krishna-Godavari (KG) basin in 2002 and the completion of its Jamnagar refinery in Gujarat in 2008. RIL also owns Reliance Gas Transportation Infrastructure (RGTIL), which operates the 1396 km-long East-West Gas Pipeline from Andhra Pradesh to GujaratEssar Oil is another key player in both upstream and downstream, and is the second largest private refiner; it recently completed the expansion of Vadinar refinery in GujaratMittal Energy Limited through a JV with HPCL, called HMEL, starting operation of the Bathinda refinery in Punjab in 2012British Petroleum (BP) acquired 30% of RIL's share in the KGD6 gas field for USD 7.2 billion in 2011 Royal Dutch Shell has been active in the LNG business in India, owning the Hariza LNG terminal that was commissioned in 2005Petronet LNG Limited (PLL) - import LNG and build re-gasification plants. A JV by oil PSUs, namely GAIL, ONGC, IOCL and BPCL, each of them owning 12.5% of share, the remaining 50% share is held by private shareholders, including a GDF Suez subsidiary (10%) and the Asian Development Bank (5.2%)Private PlayersSource: IEA: Understanding Energy Challenges in India 2013Major Players - Coal CenterStatesPrivateMinistry of CoalCoal ControllerCMPDILState GovernmentsMinistry of CoalCoal India LtdSingareni Collieries Company LimitedNeyveli Lignite Corporation LimitedWestern Coalfields LtdState GovernmentsSingareni Collieries Company LtdGujrat Mineral Development Corporation LtdMahanadi CoalfieldsPowerCementIron & SteelOthersPolicyProductionCompetitive Scenario CoalMinistry of Coal (MoC)Responsible for all aspects of the coal sector including determining policies and strategies in respect to exploration and development of coal and lignite reserves,permitting coal projects deciding on production, supply and distribution and, in determine practice, prices allocate coal blocks to captive producersThe Coal Controller, under the MOC, functions as a semi-regulator granting permission for opening of coal mines setting standards and procedures relating to coal mining inspecting the quality of produced coalcollecting coal-related data

Government enjoys a near monopoly in Coal production and distribution in IndiaThree PSUs under MoCThe Coal India Limited (CIL) is the largest coal producer in the world by manpower and output and is responsible for the entire Indian coal mining sectorCIL produces about 80% of domestic coal and employs more than 370 000 people and is a Maharatna status PSUThe Singareni Collieries Company Limited (SCCL), Indias oldest mining company, mainly supply coal to southern IndiaNeyveli Lignite Corporation Limited (NLC) is a lignite mining company based in Tamil NaduSource: IEA: Understanding Energy Challenges in India 2013, MoC 2011Competitive Scenario CoalState governmentsState Governments, under their jurisdiction exercise a restricted influence on coal miningThey exercise rights to to issue mining licenses and leases within their states, which are prerequisites to obtaining final approval from the MOCStates own stakes significant stakes in coal PSUsCaptive ProducersPrivate and Public companies who require large and consistent coal supply are allowed to operate mines since 1976The produced coal is only for self-consumption and is not commercially tradable or exportable; surpluses can be only sold to CILThe share of captive production was 10% of total production in FY 2011/12Other Stake HoldersThe power sector is the largest consumer of coal in India, representing about 75% of total consumption NTPC alone consumes 137 million tonnes or 25% of domestically produced coal in FY 2010/11, making it the largest single coal user in IndiaThe Ministry of Environment and Forest is responsible for issuing environmental and forestry clearances, which are critical statutory permissions to be obtained before implementation of coal projects180 coal projects are awaiting forestry clearance from Ministry of Environment and ForestSource: IEA: Understanding Energy Challenges in India 2013, MoC 2011Policy Framework Oil & GasKey PoliciesUnder the Industrial Policy Resolution in 1956, the Oil and Natural Gas Commission and Indian Oil Corporation were created for the upstream and downstream sectors respectivelyThe Indian government nationalised the hydrocarbon sector during the 1970s, reaching completion in 1981 Upstream blocks for exploration were then allocated to oil PSUs on a nomination basis and private companies could later participate too, but only through a joint venture with PSUs Due to slow exploration and development of hydrocarbon reserves led to a re-liberalisation of the sector in the 1990sNew Exploration Licensing Policy (NELP)Earlier allocation of upstream projects to PSUs was controlled through administrative orders from the Indian governmentThe NELP, effectuated in 1999, is a cornerstone of Indias upstream policyAim was to accelerate exploration and development of hydrocarbon resources in India against the backdrop of increasing domestic demand The NELP awards exploration blocks through international competitive bidding and allows 100% foreign and private participation The PSUs had to begin competing on equal footing with private and foreign companiesUnder the NELP, the Production Sharing Contract (PSC) are the managing instrumentA total of eight bidding rounds of NELP have been implemented since the first in 1999, with mixed outcomes Through these eight rounds, a total of 326 blocks have been offered and, 236 awardedA total of 107 discoveries were made, of which 31 were declared commercial and six have started productionUnder the NELP, Indias unexplored sedimentary areas decreased from 50% in FY 1995/96 to 12% in FY 2010/119th round of bidding 33 exploration blocks were offered, ONGC bagged 10, OIL 10 and RIL 6 were awardedAs of 27th Nov 2013, Govt has announced 86 blocks for exploration under NELP round 10DGH MoPNG, Wikipedia, IEA: Understanding Energy Challenges in India 2013 Policy Framework Oil &GasIndia Hydrocarbon Vision (IHV) 2025Introduced in 2001, IHV 2025 laid out the long-term vision for the oil and gas sector The objectives were enhancing energy security and promoting a free market and competition within the sector In the medium- and long-term strategies contained in the IHV 2025, some salient features arenotably increasing operational flexibility and autonomy of PSUs developing the sector to a globally competitive levelbetter utilisation of domestic hydrocarbon resources12th Plan (2012 - 17)The overall availability of energy would need to be increased substantially to bridge the gap in energy demand and supplyDevelopment of energy markets will be promoted as part of this overall policy to help reduce demand and supply gap; this will ultimately lead to greater competition and better prices for consumersFor meeting the requirements of the transport and other sectors, development of other domestic energy sources will be taken up through further exploration of oil and gas with the help of international competitive biddingExploration policies will be further refined to attract the major global oil players, international investors and technologiesShale gas would be explored to ensure larger availability of gas International cooperation and expertise would aim at quick exploration of all basins for this form of natural gas

FDI in Oil & Gas100% (automatic) in Upstream exploration & production, petroleum product marketing & pipeline100% (non-automatic) Natural gas / LNG pipelines100% (automatic) in privately owned refineries26% in state owned refineriesDGH MoPNG, Wikipedia, IEA: Understanding Energy Challenges in India 2013 Challenges Oil & GasPricingThe current pricing system posits problems to all stakeholders in the sectorFor the government, even if total tax revenue earned on petroleum products outweighs the compensation for OMCs,maintaining the current system is very costly The complexity of the system entails considerable administrative costs and resources for monitoring the scale of under-recoveries, transferring funds among PSUs and arranging the issuance of oil bonds by the Finance MinistryConsumers already pay a relatively high price for at least gasoline, especially given Indias low per-capita income level, due to heavy taxation The current subsidy system fails to effectively reach those who are in need, while untargeted subsidies benefit mostly middle and upper income classes.

Import DependenceIndia spent about USD 92 billion on importing crude oil in FY 2010/11, representing about 25% of its total import bill That year, India recorded nearlyThe challenges from Indias import dependence will increase at least in the short term: Indias demand is still growing, hence further import increase is inevitable India is a price taker in the global oil market, so any international price hike will have a direct impact on Indias current accountIndia needs the participation of E&P companies with advanced technical expertise and know-how, particularly for offshore E&P and improvement of Enhanced Oil Recovery (EOR) in existing fieldsIndia is increasingly focusing on mitigating its growing oil consumption through demand-side management, such as vehicle fuel efficiency and biofuels

DGH MoPNG, Wikipedia, IEA: Understanding Energy Challenges in India 2013 Policy Framework CoalColliery Control Order 2000Coal Linkage Policy deregulated prices for all coal qualities; distribution remained controlled by the GovernmentNew Coal Distribution Policy 2007Introduced to facilitate supply of assured quantities of coal to consumers of core and non-core sectors at pre-determined pricesIntroduced Fuel Supply Agreement (FSA) replacing the linkage systemUnder FSAs 100% of coal requirements for the power and fertilizer sectors will be met by coal companies and 75% of coal requirements for other large consumers

NCDPs insufficient reliance of market mechanismThe NCDP resulted in huge burdens to CIL due to stagnating coal production As a FSA is a legal obligation, failing to honour its supply commitments entails an expensive penalty payment by CIL to consumersImporting coal to fulfil its commitment turned out to be an enormous challenge, mainly due to the price disparityCIL has refused to sign a new FSA since March 2009, with 1184 standing FSAs for a total of 304.80 Mt for the power sectorAs an interim arrangement, CIL has used memoranda of understandings (MOUs) to supply coal to power companies, in which CILs obligation is reduced to 50%, despite resistance from the power

Key PoliciesIndias private coal mining companies were nationalised under the Coal Mines (Nationalisation) Act 1973; CIL was established in 1975In 1976 iron/steel and the power industry were allowed to produce coal from designated mines captive consumptionNational Mineral Policy 1993 aimed to encourage foreign and private investment in Indias mineral sector Eligibility for captive production was expanded to cement producers and coal washing, later to coal gasification and liquefaction in 2007

MoC, Wikipedia, IEA: Understanding Energy Challenges in India 2013 Challenges CoalInfrastructureStagnating domestic productionDuring the 11th Five-Year Plan, Indias coal demand increased at CAGR of 8.5%. However, CILs domestic production has increased at a CAGR 4.6% during this periodReasons sighted for stagnating coal production were majorlyrigid and time consuming procedures for land acquisition and environment clearancefrequent strikes and strong unions disrupting work and slowing down production

Import DependenceIndias coal imports have more than doubled over the last five yearsHowever importing coal is becoming problematic due to following reasonsLimited support infrastructure Different characteristics of coal typically allow Indian power plants to blend imported coal with domestic coal only up to 10% to 15%Price disparity posit a considerable difficulty for both CIL & consumers

India requires a well-integrated infrastructure for its coal supply chain, which includes railroads, importing ports and washeries Delayed construction of railways by Indian Railways to connect mines, dispatch centres and end-use destinations, has already created a considerable bottleneck in coal supply in recent yearsThe limited supply capacity and poor quality of mining equipment of Indian suppliers can hinder mining productivityMoC, Wikipedia, IEA: Understanding Energy Challenges in India 2013 Latest DevelopmentsUnconventional HydrocarbonsCoal Bed MethaneIt is a form of natural gas; extracted from coal bedsIndia began awarding coalbed methane (CBM) blocks for exploration in 2001the U.S. Geological Survey (USGS) and ONGC to conducted a resource assessment and estimates anywhere between 9 and 92 Tcf of CBM resources both onshore and offshore India Great Eastern Energy Corporation (GEEC) has developed the Raniganj block in West Bengal, with an estimated 1 TCF of gas potential Essar Oil and RIL have also been developing blocks in Bengal, although there has not been any significant commercial production

Unconventional HydrocarbonsShale GasJoshi Technologies made the first shale oil discovery in Cambay Basin in mid-2010Companies are interested in exploring the Cambay basin in Gujarat, the Assam-Arakan basin in northeast India, and the Gondwana basin in Central India for shale gas resources,There has been no commercial production or publicly released reserve figures by GovernmentMoPNG announced to come up with a policy on Shale gas blocks exploration & production

Future Outlook

World Energy DemandBP World Energy Outlook 2030Future Outlook - GlobalFuture DemandPopulation and income growth are the key drivers behind growing demand for energy. By 2030 world population is projected to reach 8.3 billion, which means an additional 1.3 billion people will need energy; and world income in 2030 is expected to be roughly double the 2011 level in real termsWorld primary energy consumption is projected to grow by 1.6% p.a. from 2011 to 2030, adding 36% to global consumption by 2030. The growth rate declines, from 2.5% p.a. for 2000-10, to 2.1% p.a. for 2010-20, and 1.3% p.a. from 2020 to 2030Demand DriversLow and medium income economies outside the OECD account for over 90% of population growth to 2030. Due to their rapid industrialisation, urbanisation and motorisation, they also contribute 70% of the global GDP growth and over 90% of the global energy demand growthEnergy used for power generation grows by 49% (2.1% p.a.) 2011-30, and accounts for 57% of global primary energy growth. Primary energy used directly in industry grows by 31% (1.4% p.a.), accounting for 25% of the growth of primary energy consumptionThe fastest growing fuels are renewables (including biofuels) with growth averaging 7.6% p.a. 2011-30. Nuclear (2.6% p.a.) and hydro (2.0% p.a.) both grow faster than total energy. Among fossil fuels, gas grows the fastest (2.0% p.a.), followed by coal (1.2% p.a.), and oil (0.8% p.a.)Success of North Americas shale gas has sparked an interest in duplicating the results in other countries. However countries have to overcome geographical and technical challenges to make it commercially viableBP World Energy Outlook 2030, Deloitte Oil & Gas Reality Check 2013Future Outlook - IndiaAs per BP Energy Outlook 2030India's energy consumption growth of 110% outpaces the rest of the BRIC countries with China (+72%), Brazil (+57%), and Russia (15%)Indias energy production to double; oil (-23%), gas (+16%), hydro (+99%), nuclear (+342%), and renewables (+448%)Coal remains the dominant fuel produced in India growing by 107% and accounting for 67% of total energy produced; coals dominance drops slightly from 53% today to 50% in 2030Net energy imports increase by 135% as the country imports 42% of total energy demand in 2030, up from 37% todayOil maintains its dominance in the transport sector as its share actually increases from 94% in 2011 to 95% in 2030 Fossil fuels account for 88% of Indian energy consumption in 2030, down marginally from 92% in 2011; Renewables share of consumption rises from 2% to just 4% in 2030Oil imports will rise by 152% as the countrys production meets less than 10% of demand by 2030 India will become increasingly import dependent despite increased production of both renewable and nuclear energy BP World Energy Outlook 2030, Deloitte Oil & Gas Reality Check 2013