The global GDP is estimated to have contracted by 2.2% in 2009, the first absolute decline in global GDP among the post world war crises, said Sh. Sarthak Behuria, Chairman, PetroFed at the 9th Annual General Body Meeting of the Petroleum Federation of India on September 22, 2010 at New Delhi.  According to the World Bank, he added, about 64 million more people around the world are expected to be living on less than $1.25 a day by the end of 2010 than would have been the case without the crisis.  The world growth rate is expected to stabilize at 4.25% in 2011 with Asia’s growth at 6.75%.  India’s growth may touch 9.5% this year according to IMF though the Indian Government estimates an 8.5% growth.

The global economic recession drove world primary energy consumption lower by 1.1% in 2009, the first decline since 1982.  The decline was concentrated in OECD countries, where it fell by 5%, and the territory of the former Soviet Union.  Global oil consumption declined by 1.2 million barrels per day or 1.7% whereas global oil production dropped even more rapidly by 2 million barrels per day or 2.6%.  The global refining capacity grew by 2.2% or 2 million barrels per day with the Asia Pacific accounting for more than 80% of global growth largely due to increases in India and China.  Natural Gas experienced the most rapid decline in consumption falling by 2.1%, the largest decline on record.

In India the consumption of petroleum products recorded a year-on-year growth of over 3.4%, almost at the same levels as in the previous years.  PetroFed, Sh. Behuria said, had submitted to Government and the Expert Committee on pricing of sensitive petroleum products, headed by Dr. Kirit S. Parikh, a study report prepared in association with IIM-Ahmedabad suggesting pricing reforms. He lauded the initiatives taken by the Union Ministers for Petroleum & Natural Gas, Sh. Murli Deora and Sh. Jitin Prasada in the pricing reforms undertaken.  No less, he added, was the stellar role played by the Secretary, Ministry of Petroleum & Natural Gas, Sh. S. Sundareshan in this regard.  He, however, hoped that the process will be carried forward further to reduce the subsidy burden of the oil companies.

Appreciating the various initiatives taken by PetroFed in bringing to the Government’s attention a host of critical issues facing industry.  He said that on two significant issues, PetroFed had succeeded in obtaining a favourable decision.  The Federation’s reports and publications, Mr. Behuria, said are valued for their content and quoted by different authorities.  He briefed the General Body on the various PetroFed actions and welcomed the five entities who were admitted as members of the Federation during 2009-10 and the first half of the current fiscal.

Director General, Mr. A.K. Arora informed the General Body about the revised PetroFed Awards 2010, wherein two new categories of Awards had been added to the earlier nine categories operating since 2007.  He also advised members that the PetroFed Awards 2010 scheme will be put up on the website on September 24, 2010 and the last day for receipt of applications will be November 09, 2010. He exhorted companies operating in the Indian oil & gas sector to submit applications for the Awards.

The Annual General Body passed a resolution adopting the Audited Balance Sheet and Profit and Loss Account of the Federation for the financial year ending March 31, 2009. M/s Rakesh & Company, Chartered Accountants were also reappointed as Auditors of the Federation until the conclusion of the next General Body Meeting.