Efficiency Improvement in Utilisation
of Hydrocarbon Resources -A perspective
Introduction
Energy is essential both as a means
of production and for its contribution to quality of life. The pace of
exploitation of the energy resource has been growing over time and may
result in gradual depletion of scarce reserves. Efficient use of all resources
is necessary both in an environmental and economic sense. Using energy
inefficiently creates waste in all the world's economies and has environmental
impacts with local, regional and global implications. The steps to create
a sustainable energy system begins with the wise use of resources. It continue
with the increased use of renewable resources and also controlled use of
non renewable resources. Energy efficiency is the mantra that leads to
a sustainable energy system.
The striking characteristics of
the Indian energy consumption pattern is to continued co-existence of non
commercial fuel in conjunction with commercial energy forms. The use of
non commercial fuels with significantly low efficiencies is largely restricted
in their utilisation as domestic fuels in rural and semi urban areas. India's
economic progress has been made possible mainly through complimentary development
of energy production and supply industries viz. coal, oil, electric power
etc. In India the consumption of primary energy is quite low as compared
to the developed nations.
Although coal continues to be the
basic primary commercial energy source, the economy is progressively becoming
oil intensive. The consumption of petroleum products in our country increased
from about 4 MMT in the year 1950 to above 85 MMT during last year. Petroleum
product demand is projected to touch 113 MMT p.a. by the year 2001 and
155 MMT p.a. by the year 2006 which is almost double our present consumption.
In the year 1997-98 we spent a colossal Rs. 27,000 crores in foreign exchange
for the import of petroleum products which is almost 25% of our total export
earnings. This was when the international price of crude was $ 10 per barrel.
Now this crude oil price has almost doubled. At the projected indigenous
crude availability, by the end of the 10th Five Year Plan, our country
may have to import 120 MMTPA of crude and products which may cost around
Rs. 90,000 crores at the current international prices.
Banking On Energy Conservation
The oil crunch era recognised energy
conservation and efficiency as a tangible resource which competed economically
with other energy options. It helped in increasing the international competitiveness
of the industry by reduced cost of production and also optimised the use
of limited financial resources through lower capital investments in conservation
measures in preference to the option of augmenting capital intensive energy
supply systems. Thus, the imperatives of an energy shortage situations
call for energy conservation measures, which essentially mean using less
energy for the same level of activity. The repercussions to the increasing
use of energy are the depletion of finite fossil fuel reserves and environmental
pollution.
With the growth in industrial and
economic activities, it is but natural that the demand for energy including
petroleum products will increase. However if we can utilise these products
efficiently we may be able to reduce our foreign exchange out go on account
of import of petroleum products. Inter-ministerial Working Group has estimated
that efficient use of petroleum products and curbing of wasteful practices
can bring about a saving of 20-25% of our total consumption.
SCOPE FOR CONSERVATION
Over the last four decades, the
country has made rapid strides towards economic self reliance. Impressive
progress has been made in the fields of industry, transport, communications,
agriculture and other sectors necessitating growing consumption of petroleum
products for developmental and economic activities. However, it remains
a fact that many of the practice and activities which utilise the petroleum
products are not efficient when compared to international standards.
The main reasons for higher specific
energy consumptions in Indian industries are obsolete technology, lower
capacity utilisation, casual metering and monitoring of energy consumption,
lower automation, raw material quality and poor handling, operating and
maintenance practices.
Petroleum consumption in
India
The growth in the consumption of
petroleum products in India has outstripped the indigenous production of
crude oil, causing sharp decline in the level of self-sufficiency. This
has created an alarming situation on the position of balance of payment
apart from serious concerns on energy security.
The demand for petroleum products
is expected to further increase sharply to around 113 MMT by the terminal
year of IXth Plan (2001-02) and 155 MMT by the terminal year of Xth Plan
(2006-07).
Moreover, in India the position
of recoverable crude oil reserves have shown a declining trend and currently
the country has reserves of around 739 MMT, which would sustain production
flow for a few decades at the current rate of depletion. This underscores
the imperative need for maximising petroleum conservation in addition to
resorting to major technological changes and use of alternative forms of
energy.
A Pursuit With A purpose
PCRA strives to maximise the conservation
of petroleum products with a view to reduce substantially the import bill
for oil and petroleum products. Its main objective is to spread the message
of synergetic linkages between oil conservation, economic development and
environment protection. The strategy for achieving this objective includes
:
-
Enlargement of the base of mass awareness
-
Adoption of improved house keeping methods
-
Training and education
-
Technology improvement and innovations
-
Inter fuel substitution including maximum
possible usage of natural gas
PCRA now aims to enter into strategic
alliances with both domestic and international agencies to carry out consultancy
studies and promote R&D. Efforts are on to encourage the alternative
sources of non conventional and renewable energy like solar, wind, bio-mass,
bio-gas etc. Industries are being urged to use coal in place of furnace
oil wherever feasible. Mass awareness, propagation of energy efficient
technologies and legislative measures have to go hand in hand for creating
a perceptible impact on the energy scenario in the country. Innovative
ways for mass awareness in addition to exclusive use of electronic media,
press, printed literature etc are adopted to achieve the objective.
PCRA's consistent efforts over the
years have helped in bringing about a recurring savings of 1.7 million
tonnes of oil during 1998<196>99. This is approximately one third of
the annual refining capacity of a medium sized Indian refinery. In terms
of money, it is worth. Rs. 1049 crores. However, this is just the tip of
the iceberg compared to the vast potential of about 17 million tonnes out
of the 85 million tonnes of oil consumed in our country last year. PCRA's
conservation drive has been directed mainly towards countering the increasing
demand through efficient and effective utilisation of petroleum products
by minimising wasteful practices.
Energy Efficiency Improvement
While energy efficiency is widely
viewed as an important element of energy and environmental policy, there
is little agreement on specific energy efficiency goals and the best ways
to achieve them. Estimates of energy efficiency improvements and their
impact on energy demand are based on assumption about technical factors,
equipment costs, expected rates of market penetration, consumer behaviour
and policy measures. The potential of energy efficiency improvements can
never be fully realised until and unless these energy users take into account,
either explicitly or implicitly, the energy economic consequences of their
capital investment decisions.
A multi faceted and co-ordinated
approach is called for to achieve energy efficiency gains. A successful
energy efficiency strategy requires that policy priorities are clearly
defined and appropriate instruments and sufficient resources are deployed.
Expertise also needs to be strengthened in project design and evaluation,
and assessment of the costs and benefits of energy efficiency programme
and projects.
Future Thrust Areas
Promotion of energy conservation
in the country would require initiatives in a number of areas. Much of
the challenge in creating a sustainable energy system lies in how technological
advancement can be put to use faster and more widely and how the behaviour
of energy users adapt to these new opportunities. Realising this need,
PCRA is planning to administer special thrust in several areas viz.
-
Development of specific oil consumption
norms and target setting
-
Development of database for evaluation
of efficiency standards
-
Networking with like minded institutes
and industries creating awareness
-
Integration of oil consumers, equipment
manufacturers and R&D institutes for technological upgradation and
efficiency improvement
-
Integrated approach involving PCRA,
various ministries, industry associations etc. for development, co-ordination
and implementation of energy conservation programmes.
Conclusion
In order to ensure rapid economic
growth, adequate infrastructural facilities at affordable cost is very
crucial. Energy being an important element of the infrastructure sector
has to be ensured on a sustainable basis. While on one hand, the demand
for energy is increasing on the other hand the energy sources are becoming
scarce and costlier. This has compelled decision makers to adopt a systematic
approach towards present trend of energy consumption by devising innovative
and practical ways to conserve.
Successful energy conservation requires
lot of management inputs. Energy conservation should not be considered
only a technical problem. It must be integrated into management plan of
a company. The road to successful conservation is long and difficult but
can be achieved easily through proper planning, correct investment and
above all bringing about attitudinal change. PCRA, Oil companies, Industry
Associations, STUs, Research Institutes and other government and non government
organisation working in related areas can achieve this gigantic task through
sustained efforts and mutual co-operation. Each one of us should make valuable
contribution to the cause of oil conservation by avoiding wasteful practices
and exercising due caution in the use of petroleum products and other forms
of energy in our own areas of day to day operation and activities. |