Chemicals & Fertilisers Minister emphasize action points for Ministry

With the coming of new government, on 28th May, 2014 Chemicals& Fertilisers Minister Mr. Ananth Kumar who took charge had said that petrochemical hubs has been schedule to set up in Tamil Nadu, Assam and Orissa and to gain momentum and in order to make the country self-dependent on the widely used soil nutrient, necessary measures will be taken by the government to revive the sick urea manufacturing plants. Furthermore he stresses that the government should also plans to stimulate all closed urea plants and make the country self-reliant in fertiliser supply.

The Chemicals & Fertilisers Minister Mr. Ananth Kumar for his ministry on taking charge have stressed on three actions which is to set up petrochemical hubs in a hastening efforts in Assam, Orissa and Tamilnadu, plummeting the costs of medicines by over 25% and ensuring ample & appropriate supply of fertilisers to farmers and reinforcement of all closed urea plants.

In the year 2013, the global economic growth of fertiliser industry had been quite inadequate, whereas in 2014 the growth of world economic activity was seen as recuperating. Since mid 1990s the fertiliser sector had not seen any momentous growth to capacity for making urea which is noted as the most important fertiliser and for improving the domestic availability of fertilisers can only meet up by encouraging new projects particularly by existing manufacturers, however in last two decades demand and import of fertiliser has soared high. With the slowdown of growth in China towards 7% will affect many other countries especially the commodity exports. In the year 2014-15, highest growth rates have been projected in the emerging economies particularly in Indonesia, China and India.

Furthermore with the formation of the new government, the new Chemicals & Fertilisers Minister assures the farmers that there will be no shortage of urea in the coming kharif season. As per the sources, India produces nearly 22 million tonnes of urea whereas the annual domestic demand is about 30 million tonnes. According the market outline, the Ministry of Chemicals and Fertilizers are struggling to pay out subsidies and the demand of India continues to remain under pressure, moreover the demand of fertiliser may possibly collision with a nascent weakening rupee and inadequate monsoons season. Hence an innovative and comprehensive policy for fertiliser sector is needed.

For more than a decade the creation of chemical manufacturing hubs in coastal India is an idea that has been languished and only one petrochemical hub ONGC has taken off in Dahej which has commissioned a world-scale cracker and is will considerably boost the availability of raw materials for downstream processing. However diminutive progresses have been made by four other clusters in Orissa, Andhra Pradesh, Karnataka and Tamil Nadu not a great deal exists aside plans on paper. Moreover, to improve the battered image of the Indian chemical industry, the scheduled growth will be served.

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China’s shale gas production to enter its booming years

Chinese shale gas industry is about to enter its booming years, made possible by China National Petroleum Corp and Sinopec Group. These two oil and gas companies enabled the nation’s shale output to hit 200 million cubic meters in 2013.

Shale gas production in China is expected to reach 1.5 billion cubic meters this year. China has made significant breakthroughs in the unconventional oil and gas exploration sector. 

In 2013, at the Chongqing Fuling shale gas block Sinopec averaged single well output of 150,000 cubic meters per day. The company is hoping to reach an annual production of 1 billion cubic meters by the end of this year. 

CNPC has commercialized shale gas output of 70 million cubic meters from Changning-Weiyuan block in Sichuan province, Zhaotong block in Yunnan and the Fushun-Yongchuan block in Sichuan. Based on the current development level these Chinese companies have managed to achieve will help increase domestic shale gas capacity.

However, there are analysts who are not so upbeat about the future. China is expected to consume nearly 170 billion cubic meters of natural gas in 2014. And even if the country manages to accomplish the goal, all the production cannot be used for society as it requires well-developed pipeline infrastructure and other supporting facilities. 

Low utilization rate and issues in upstream exploration will hinder the industry’s forward march.

The greatest hindrance is the lack of a method that can be used for most shale gas blocks in China. For instance, Sinopec’s technology for the Chongqing Fuling block cannot be used for other blocks.

Other major concerns include groundwater exploitation and contamination. Furthermore, China’s geological conditions are very different from those in the US- world’s biggest shale gas producer.
Majority of the shale gas blocks in China are in mountainous regions, which makes it extremely difficult to bring in huge fracturing equipments necessary to extract gas.
Shale gas exploration requires huge quantities of fresh water and technology available at present hasn’t been able to address this issue. Fresh water once used in shale gas extraction can’t be cleared for residential use and removing fluids from reservoirs can lead to surface subsidence.

These challenges have been limiting the growth of the shale gas industry. Companies are also reluctant to carry out operations in blocks they won from the bidding. 

Drilling a well can cost around 100 million yuan, which still cannot assure that shale gas will be found. Thus, the high cost and the inherent risks in shale gas exploration have deterred Chinese companies from making any big moves. The reluctance of the companies has also prevented any further bids.

China’s shale gas boom, however, has brought about opportunities for some machinery manufacturers. For instance, Yantai Jereh Oilfield Services Group Co Ltd has been trying to manufacture fracturing equipment suitable to China’s geological contours. This company is the only Chinese firm to supply shale gas equipment to North American companies. Jereh, recently, started developing machines meant specifically for Chinese projects. Their equipments can be used in areas with poor roads and uneven land.

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Chemical waste can been recycled and reused

Waste disposed at the industries clusters can be recycled in a great way as it can be reused to make new products, however, if these waste are not recycled than new products are made by hauling out fresh raw material from the earth through mining and forestry process. Chemical materials like plastic, glass and aluminum can be recycled and can be used in manufacturing other products. For chemical industry, treating waste discharge is a mandatory requirement for using it to make useful products which requires innovative thinking. Aluminum which is a cheaper chemical produced using recycled and scraps aluminum instead of using ores.

Nowadays, recycled products are on augment by many consumers and major industries have adopted this stance and most of the manufacturers are facing mounting pressure to provide products from recycled materials. Carpet manufacturers are also facing this pressure. Major chemical producers such as Honeywell/Allied Signal and DSM Chemicals have developed new technology which can help to recycle approximately 1.8 million tons of nylon carpet each year. This technology allows nylon manufacturers to recover and reuse caprolactam which is a raw material used to make nylon 6.

The recycled materials used in manufacturing process considerably take less energy than required for producing new products from raw material. On the contrary, more energy is saved as extra energy is required to extort, refine, transport and process ready raw material for industry in compare with providing industry ready material.

This process of recycling diminishes the need for mining, quarrying and logging, refining and processing raw materials as each one creates substantial air and water pollution. It also helps in saving energy and cuts down greenhouse gas production which in turn embarks upon the climate change. Currently, recycling in UK has projected to save more than 18 million tonnes of C02 a year which is equivalent of taking 5 million cars off the road.

According to the Tata Strategic Management Group (TSMG) report, approximately 20% of global effluents are liable for the chemical industry, even though it accounts for only 3% of global chemicals industries. Consequently several chemical companies have started to explore green chemistry based routes of synthesis to depose wastage and optimize the usage of raw material consumption.

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Asian buyers reduce imports of Iranian oil

The Western sanctions imposed upon Iran in mid-2012 led to declining oil revenues and a wobbly economy. If sanctions on the Islamic Republic are fully lifted, Tehran will have to persevere to regain the share of world oil markets it lost.

iran oil

Six countries namely China, Japan, Taiwan, India, Turkey and South Korea continue purchasing Iranian crude, but under exemption from US financial sanctions for which they have to reduce import of Iranian oil.

Since the sanctions came into force, Iran has lost market share in all these countries. Taiwan’s import volumes are rather small and inconsistent. Combined imports of crude oil from Iran by China, Japan and South Korea hit 1.09 million bpd in 2011, a year before the sanctions came into force. In 2013, the combined imports were at 740,000 bpd- a decline of 33.27 per cent from the 2011 level.

Over the same period, the combined total crude import volume by the 3 countries was at 14.81 million bpd in 2013 compared to 11.18 million bpd in 2011, a rise of 32.43 per cent from the 2011 level.

Iran is the only nation with declining volumes, whereas other suppliers increased volumes. For instance, Saudi Arabia increased supply by 4.66 per cent, whereas Russia raised supply by 39.6 per cent. Russia has been delivering larger volumes to Asia- the perfect market for its ESPO crude blend considering demand and logistics. After Russia, the biggest increase in supplies was from Kuwait, Iraq and Oman.

In 2011, combined imports of Saudi crude by the 3 countries stood at 2.895 million bpd. In 2012, Saudi raised supply by 7.36 per cent to 3.108 million bpd. In 2013, Saudi reduced volumes by 2.5 per cent to 3.03 million bpd. Imports from the UAE also increased by over 10 per cent to 1.325 million bpd in the previous year from 1.2 million bpd in 2011 and 2012.

In 2011-13, imports from Qatar to Japan and South Korea increased from 634,000 bpd to 700,000 bpd- a rise of 10.41 per cent.

Imports from Oman rose by 22.9 per cent to 601,000 bpd in the previous year from 489,000 bpd in 2011. In Iraq, imports increased from 620,000 bpd in 2011 to 784,000 bpd in 2013- a rise of 26.25 per cent. Iraq’s supply increase was concentrated on China.

Iraqi imports increased to 472,000 bpd in 2013 from 277,000 bpd in 2011. Japan’s import of crude oil from Iraq declined to 63,000 bpd fro, 99,000 bpd- a drop of 36 per cent between 2011 and 2013. While South Korea’s imports of Iraqi crude, at 249,000 bpd in 2013, showed little change.

Combined crude imports from Kuwait increased to 882,000 bpd in 2013 from 753,000 bpd in 2011- an increase of 17.13 per cent. For Saudi Arabia the greatest year-on-year percentage increase was in 2012, when imports from Kuwait increased by 21.78 per cent to 917,000 bpd. However, between 2012 and 2013 import volume declined by 3.82 per cent.

Saudi Arabia, Qatar, Iraq, Kuwait and the UAE increased supply to China, Japan and South Korea by 516,000 bpd between 2011 and 2013.

Volume increase from Gulf exporters, including Oman, over the 2011-2013 period stood at 728,000 bpd, almost double the 369,000 bpd volume by which imports from Iran declined.

China witnessed increased supply from two other OPEC producers. Supply from Angola increased from 626,000 bpd in 2011 to 804,000 bpd in 2013, an increase of 28.43 per cent. Venezuela also raised supply from 231,000 bpd in 2011 to 316,000 bpd in 2013, an increase of 36.8 per cent.

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Outlook on Indian petrochemical industry

In the year 2013, Indian petrochemical industry was significantly affected by an economic slowdown and the depreciation of the Indian currency. The Indian petrochemical producers are optimistic about the outlook of Indian petrochemical industry in near future. A number of investments are begin made by various state-owned energy companies to boost their petrochemical activities and are also expecting to become a major players in the petrochemical industry.

Indian petrochemical industry

Several petrochemical producers have scheduled to expand their production capacity at their plants, which will slow and steadily fill the gap between domestic and supply. However, as per the industry sources, comparatively, limited new domestic capacity is projected to come on-stream and as a result, import threats from Mideast and East Asian producers remain noteworthy for Indian producers.

According to the market experts, in the recent year the overall outlook petrochemical industry in India is somewhat more positive as the augmentation in GDP and industrial output is anticipated to be higher in year 2014 in compare to the previous year. Since November 2013 the market condition had been buoyant and double digit growth is expected to grow in the ending of the FY15.

The Indian petrochemical and downstream industries were drastically affected by the fall of the Indian currency. This fall in Indian currency were directly impacted on the converter industry in India, as the values of majority of petrochemical products in India were based on an import parity price. In the fiscal year 2012, one of major petrochemical producers Indian Oil had reported revenue of almost USD 2.5 billion in compare to the previous fiscal year. Currently the total revenue of petrochemical business of Indian Oil accounts for about 3.5% and in the next few year the company is planning to increase the share of petrochemicals in the overall revenue.

During past three year, the economic growth in India is once again increasing after a slowdown and as per the estimates done by the research analyst, in the fiscal year ending 31st March 2014, the GDP growth rate of India will increase from 4.6% to 5.4% and 6.3% in the fiscal 2015. According to the market experts, the long term growth outlook of Indian petrochemical industry is likely to remain optimistic and during 2013, the demand growth in India was low in compare to the prior year. As the manufacturing sector is struggling the market experts do not expect the single digit growth rate to considerably improve in the near future.

Nearly few major petrochemical manufactures have scheduled to build up new petrochemical plants at their units. Indian Oil and BP which is one of the major petrochemical manufactures are planning to start a new Acetic Acid plant in Gujarat. The plant will be having production capacity of 1 million mt/year and will be one of the largest Acetic acid plants in Gujarat, India. This plant is a joint venture between Indian Oil and BP and the firm would be investing nearly USD 1 billion for setting up the facility near Koyali refinery of IOC. The acetic acid facility which is located in Vadodara city is expected to begin its operational in 2017. Indian Oil is also studying a number of projects based on refinery propylene at Koyali.

Another petrochemical major ONGC Mangalore Petrochemicals Ltd. is building an aromatics complex in the 

Mangalore special economic zone (SEZ). The OMPL is promoted by ONGC and Mangalore Refinery and Petrochemicals Ltd. is a subsidiary of ONGC. The Aromatics complex will be producing Paraxylene with production capacity of 900,000 mt/year, Benzene with about 300,000 mt/year and the plant is expected to starts its operational in the fiscal year ending March 2015.

Two major petrochemical industry Ineos and Sinopec have signed a joint venture agreement and the Articles of Association to form a 50-50 joint venture company at Nanjing on Tuesday. The joint venture will be called Ineos YPC Phenol Nanjing Co. which will set to build the largest Phenol-Acetone plant in China and will have a total investment of approximately USD 0.5 billion (RMB 3.15 billion) and is expected to start its operation by the end of 2016. The plant will be located Nanjing Chemical Industrial Park and the annual capacity of the new plant will be at least 400,000 tonnes of Phenol and 250,000 tonnes of Acetone. The complex will also include 550,000 mt/year of cumene capacity. This joint venture is the largest investment of Ineos in China and the eighth joint venture of Sinopec Yangzi Petrochemical Company.

Global Petrochemical manufacturer – Reliance to expand its production capacity at two major petrochemical plants based in Dahej and Jamnagar. The company will commission PTA plant located at Dahej around 1.1 million mt/year in the third quarter of 2014 which is followed by another plant of the same capacity within six months. However, the total production capacity of PTA will be 4.3 million mt/year, which will make the company the fifth largest producer of PTA in the world. In the year 2015, the company is likely to build Ethylene plant at Jamnagar. The commercial start up of the plant is expected to start in the second half of 2015. The plant situated at Jamnagar will have a production capacity of 1.5 million mt/year.

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Syria’s oil and gas production may take years to recover

The ongoing hostilities between the Syrian government and the rebels have made it impossible for the nation’s oil and gas production to recover in the near term. Oil production in Syria has dropped drastically since March 2011 primarily due to the conflict and also due to the imposition of Western sanctions, which has led to loss of oil export revenues.

Even Syria’s natural gas production has been adversely affected, although not as significantly as oil, but dry gas production has declined by nearly 30 per cent compared with pre-conflict production levels.

Analysts estimate that Syria’s oil and gas production may take months even years to recover. Even when the fighting subsides, it would probably take a while for the Syrian domestic energy system to reach pre-conflict levels. Production and export of crude oil has fallen dramatically. Syria is also facing supply shortages for some refined products.

Syria’s proven oil reserves are estimated to stand at 2.5 billion bbl, larger than all of Syria’s neighbours except for Iraq.

During 2008-10 Syria’s oil production was more than 400,000 bpd. However, in January the country’s oil production was estimated at less than 25,000 bpd. In 2014, production also included production outside control of the Syrian government. In late 2013, the Syrian government lost control of nearly all of the nation’s key oil fields. Rebels had managed to seize control of Syria’s oil and gas resources.

Majority of the international oil firms involved in Syria’s energy sector have terminated operations. The oil companies currently operating in Syria are Hayan Petroleum and the Elba Petroleum Co. However, these firms are operating without their IOC partners. In December 2013, the Syrian government and the Russian company SoyuzNefeGaz signed a 25-year exploration agreement in Block 2 offshore.

Although the oil fields have escaped damage from the violence and clashes, oil production has been stopped because of insufficient export opportunities and limited refining capacity.

Syria is facing serious issues in importing petroleum products and is also experiencing shortage of heating oil and diesel fuel. The shortfalls are expected to continue.

Currently, Syrian refineries are being operated at reduced rates. Syria has refineries in Hams and Banias and the combined capacity of both the refineries has fallen to half of their pre-conflict production levels.

Plans to set up new refineries are either on hold or have been cancelled. For instance, the proposed 100,000 bpd facility at Abu Khashab was cancelled due to widespread anarchy in the country.

In 2012, Syria’s consumption of products was below 260,000bpd. Experts believe that consumption in 2013 will be even lower.

The Syrian government continues to subsidize domestic use of petroleum products. The government spent over $1 billion on petroleum subsidies in the first half of 2013.

Thus, the future of Syrian energy sector appears rather bleak at the moment.

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Perfumes laced with chemicals?

A recent study has worried numerous perfume lovers, including me. The report revealed that fragrances often consist of hormone-disrupting chemicals and chemicals that could cause allergic reactions. Major perfume brands have not even bothered to mention the ingredients they use in their products. Consumers take into consideration only the brand, reading the product label is deemed unnecessary.

Perfume brands are allowed to use any chemical to manufacture fragrances, with no required safety assessments, and are not even obligated to reveal the ingredients. Cosmetics can reach consumers without pre-approval. Public awareness on how hazardous low-level toxins are is extremely low. Experts have found nearly 14 hidden chemicals in several popular fragrances, including American Eagle’s Seventy-Seven, Dolce & Gabbana Light Blue, Coco Mademoiselle Chanel and Calvin Klein Eternity. Majority of these chemicals are unstudied and unregulated.

The products that were tested comprised of 10 sensitizers, which are chemicals that can cause allergic reactions such as wheezing, asthma, headaches etc. These products also consisted of 12 hormone-disrupting chemicals. Low-dose exposure to toxic chemicals can lead to long-term health issues.
The commonly found chemicals in perfumes are:-

ACETONE – found in cologne, dishwashing liquid and detergent, nail enamel remover etc. Long-term exposure to this chemical can cause coma, dryness of the mouth and throat, dizziness, nausea, slurred speech etc. It acts as a central nervous system depressant.

BENZALDEHYDE – found in perfume, cologne, hairspray, laundry bleach, deodorants, detergent, Vaseline lotion, shaving cream, shampoo, bar soap, dishwasher detergent etc. This chemical can cause kidney damage, irritation to the throat, mouth, eyes, skin, lungs etc.

BENZYL ACETATE- found in perfume, cologne, shampoo, fabric softener, stickup air freshener, dishwashing liquid and detergent, soap, hairspray, bleach, after shave, deodorants. It is carcinogenic and can cause irritation to respiratory passages, eyes, skin etc.

BENZYL ALCOHOL - found in perfume, cologne, soap, shampoo, nail enamel remover, air freshener, laundry bleach and detergent, Vaseline lotion, deodorants, fabric softener.  Exposure to this chemical may lead to headache, nausea, dizziness, drop in blood pressure and respiratory failure.

CAMPHOR – found in perfume, shaving cream, nail enamel, fabric softener, dishwasher detergent, nail colour, stickup air freshener.  It is a central nervous system depressant and is readily absorbed through body tissues. It may cause irritation of eyes, throat, dizziness, nausea, convulsions etc.

ETHANOL –found in perfume, hairspray, shampoo, fabric softener, dishwashing liquid and detergent, laundry detergent, shaving cream, soap, Vaseline lotion, air fresheners, nail colour and remover, paint and varnish remover. Inhalation of ethanol vapours may lead to drowsiness, impaired vision, ataxia, CNS disorder, fatigue etc.

ETHYL ACETATE – found in after shave, cologne, perfume, shampoo, nail colour, nail enamel remover, fabric softener, dishwashing liquid. It can cause irritation to the eyes and the respiratory tract. It may also cause headache, anaemia, damage to liver and kidneys.

LIMONENE –found in perfume, cologne, disinfectant spray, bar soap, shaving cream, deodorants, nail colour and remover, fabric softener, dishwashing liquid, air fresheners, after shave, bleach, paint and varnish remover. It is carcinogenic and can cause irritation to eyes and skin.

LINALOOL –found in perfume, cologne, bar soap, shampoo, hand lotion, nail enamel remover, hairspray, laundry detergent, dishwashing liquid, Vaseline lotion, air fresheners, bleach powder, fabric softener, shaving cream, after shave, solid deodorant. Exposure to this chemical can lead to CNS disorder.

METHYLENE CHLORIDE – found in shampoo, cologne, paint and varnish remover. This chemical has been banned by the FDA. It is carcinogenic and can lead to headache, giddiness, irritability, CNS disorder etc.   

a-PINENE – found in bar and liquid soap, cologne, perfume, shaving cream, deodorants, dishwashing liquid, air freshener. This chemical is damaging to the immune system.

g-TERPINENE – found in cologne, perfume, soap, shaving cream, deodorant, air freshener. It may cause asthma and CNS disorder.

a-TERPINEOL – found in perfume, cologne, laundry detergent, bleach powder, laundry bleach, fabric softener, stickup air freshener, Vaseline lotion, cologne, soap, hairspray, after shave, roll-on deodorant. It can cause irritation to mucous membranes, hypothermia, ataxia, CNS and respiratory depression and headache.
Manufacturers need to divulge what’s in their products, eliminate use of hazardous chemicals and ensure safety of chemicals before putting them into their products.

The need for legislations that would overhaul outdated cosmetics oversight and regulation has become absolutely essential. Consumers have a right to know that the products they use are as safe as possible. 

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Global Chemical Price – Pricing assessment methodology

A very own price assessment methodology has been developed by GCP, which has taken into account as per the existing market standards. A well defined procedure is followed to ensure accuracy, reliability & consistency of the prices. After collecting recent information from active participants of the market like brokers, traders, distributors & consumers the daily price assessments are made. Our team collects the market data through emails, telephone calls, electronic transfer & instant messaging. 

methodology

Opening market prices based upon the transaction size are taken from the key brokers & producers in the market by our team of analysts who regularly communicate with them. A detailed price assessment followed by scrutiny is made at every level. Current market scenario, strong reason for fluctuations in prices, demand supply ratio, variation in upstream & downstream products, disparity in feedstock prices are various factors on the basis of which examination is done The prices are published only after thorough analysis, and these chemical prices are or bulk quantity.

We currently follow the above said methodology for nearly 30 organic chemicals & petrochemicals.

 Acetic Acid Methodology

 Acetone Methodology

 Acrylonitrile Methodology

 Butyl Acetate Methodology

 Butyl Acrylate Monomer Methodology

 Base Oil Methodology

 C9 Methodology

 Cyclohexanone Methodology

 Ethylene Dichloride Methodology

 Formaldehyde Methodology

 ISO Propanol Methodology

 Maleic Anhydride Methodology

 Melamine Methodology

 Methanol Methodology

 Methyl Ethyl Ketone Methodology

 Methyl Isobutyl Ketone Methodology

 Methylene Di Chloride Methodology

 Mixed Xylene Methodology

 Mono Ethylene Glycol Methodology

 N - Butanol Methodology

 N - Hexane Methodology

 N - Propanol Methodology

 Ortho Xylene Methodology

 Phenol Methodology

 Phthalic Anhydride Methodology

 Styrene Monomers Methodology

 Toluene Methodology

 Vinyl Acetate Monomers Methodology

 For more info about :Methodology

How chemically driven drugs affect the human body!

Drugs are chemicals that make changes to the structure of the human body and can only react chemically as it is the only action which drugs are competent. Due to the chemical structures of different drugs can affect the human body in various ways, however, few drugs make necessary changes that is, if a person needs an insulin for diabetes or chemotherapy for cancer. Most of the harmful drugs directly or indirectly target the reward system of the brain by tormenting the circuit with dopa mine which is a neurotransmitter present in regions of the brain that regulate movement, emotion, cognition, motivation, and feelings of pleasure.

How chemically driven drugs affect the human body!

Drugs can affect the brain

When drugs get into the bloodstream, it concedes to all parts of the body and few particles reach the brain which can affect the brain functionality. As brain is known as the master control center of the body, it sends messages to the rest of the body based on the signals that it gets from the drugs. The most easiest and dangerous way of getting drugs into the brain is to inject it intravenously or injecting it into the vein.

Few of the experiments done on animals have shown that certain drugs like ecstasy can damage brain cells, but experts do not agree on whether such thing happens with humans. By in taking a wide range of drugs such as ecstasy, LSD and solvents, there have been chances about damage to the brain. However, undue and long term use of alcohol can also lead to possible brain damage.

Drugs can affect the heart

Drugs can also have a consequence on the heart directly and aggravate heart disease. The drugs that are taken enter the bloodstream and the heart pumps blood containing the drug to the brain where it affects the human body. Taking customary and high doses of tonic drugs like amphetamine, cocaine/crack, ecstasy, anabolic steroids and even possibly caffeine may increase the risk of heart attacks, especially for people who are already suffering from heart problems or high blood pressure.

Heavy drinking of alcohol and regularly consuming of tobacco may lead to a greater risk of heart problems. Consuming alcohol on a regular basis may result in weakening the ability of the heart to pump blood, which might cause heart failure. Similarly, nicotine which is found in tobacco is a kind of stimulant which increases the workload of the heart and at the same time carbon monoxide takes away the oxygen of the heart which is needed.

Drugs can affect liver and lungs

Most of the drugs can cause damage to the liver and lungs of a human body, which will make the body powerless to fight off infection. Lungs which are one of the most important organs of a human body, helps inhaling oxygen directly and very effectively to the body, however anything that is inhaled will enter the blood and very quickly to the brain. Drugs such as solvents and poppers/nitrites can also be inhaled, whereas, drugs like solvents are directly absorbed into the lungs.

Gradually neutralizing the affects of the drug, the liver alters the chemical structure of the drugs and slowly but surely stops working. Drugs such as ecstasy and drinking of alcohol constantly can impairment the liver of a human body.

Thus while using drugs, many possible risks and dangers might rise and can even cause side effects. For an instant, a person whose stimulants are high may experience an augment in energy which is caused by intake of drugs may speed up the metabolism of the body and the heart rate. Hence intake of excessive drugs can risk ones health and over a long period, taking drugs on regular basis might slowly lose its result.

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How would Iranian economy look without sanctions?

Leaders from Iran had welcomed a short-term deal over its nuclear programme to facilitate world powers allowance from sanctions targeting its key energy and financial sectors, which have crippled its economy. International Atomic Energy Agency (IAEA) was unable to confirm assertions of Tehran whether these nuclear activities are solely for peaceful purpose, since nuclear programme of Iran became public in the year 2002. According to the market experts, the landmark agreement Iran clinched with world powers on its unclear nuclear programme took effect from 20th January 2014. According to the U.S. President Barack Obama, he has no delusion on the difficulty of reaching a final agreement with Iran.

Since November 2013, the news about Iran had almost been focused on the deal to limit that nuclear program of the country, Tehran agreed to curtail its nuclear drive for six months in exchange meant for receiving modest liberation from international sanctions and a promise by Western powers not to impose new measures against its hard-hit economy. According to the senior U.S. administration official, the first $550 million installment of $4.2 billion in frozen chattels was released early in the month of December 2013. As per the research analysts, unblocking the funds will breathe new life into the economy and provide much-needed relief across Iran.

The deal which is between Iran and the six world powers known as P5+1, anticipate the six-month suspension of certain sanctions on gold and precious metals, auto sector and petrochemical exports of Iran. Less than a month after Iran and the P5+1 countries reached a deal over the final nuclear program, the Iranian people and many international stakeholders are still waiting for economic sanctions on Iran to be lifted.  

Oil, Inflation and the Auto Sector 

After the lift of economic sanctions, global businesses are piling back into Tehran and for foreign firms the biggest prize in Iran is indisputably its sanctions crippled on oil and gas sector. During past nine months, Iran had sold $34 billion worth of oil and byproducts earning $32billion.

According to Leylaz, sanctions relief could strengthen the state assets in the long term and the annual revenue was estimated that it will rise by $20-25 billion dollars, which will help the government control inflation and will meet the demands of a population ravenous for more consumer goods.

Another big opportunity in Iran is the auto sector of Iran which had been essential for European producers before the sanctions hit. It accounts for 10% of its gross domestic product and is the second biggest industry after oil and is also likely to profit from sanctions relief. 

According to the White House, during the six months of the interim nuclear agreement oil exports from Iran are to remain at the current level of about 1 million bpd. During the period from sales of petrochemicals, trading in gold and other precious metals and the improved transactions with foreign firms involved in the automotive sector will estimate that Iran will mount up to $1.5 billion.

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Iran's oil and gas sector

Iran has the largest gas reserve in the world and ranks fourth in oil reserve holdings among all countries. The Islamic Republic accounts for 18 per cent and 9.4 per cent of the world's total proven gas and oil resources, respectively. Despite its advantageous position, Iran has been lagging behind other nations due to lack of efficient projects, high domestic consumption, insufficient financial support, lack of technology and the western sanctions imposed upon Iran to curb their nuclear programme.

Iran's oil and gas sector

Iran's oil output has declined drastically. Iran produced nearly 3.628 mbpd in 2011. However, in 2013 their oil output declined to 2.7 mbpd. Iran has closed some oil fields as a result of decreasing oil exports. Their domestic refining capacity has also declined. Iran's active oil fields are witnessing rapid decline in productivity- 8-13 per cent annually.

Iran's oil recovery rate stands at around 20-30 per cent. The recovey rates of crude oil, liquid hydrocarbons and gas are 25 per cent, 29 per cent and 70 per cent, respectively. Despite plans to increase oil recovery rate by 1 per cent during Fourth and Fifth Development Plans, the recovery rate remained unchanged during the Fourth Plan because of lack of sufficient investment. Iran needed nearly $79.04 billion to reach a 1 per cent increase in crude oil recovery rate. Iran also witnessed a decline in the amount of gas injected into oil fields to bolster production. Iran needed to inject 200 mcm of gas but only 70 mcm was in injected into fields due to shortage of gas. In the past two years, the country’s domestic gas consumption has increased; the production level has also increased but the gas volume injected into oil fields has not seen a significant rise.
Iran’s oil refining capacity declined to 1.61 mbpd in 2012 from 1.772 mbpd in 2011. In 2013, a number of new projects were set up at the Arak and Bandar Abbas refineries and several plants had to be shut down for months following damages, explosions etc. However, the country’s gasoline consumption increased by 7.5 per cent to 70 million litres per day in the Iranian solar year that lasted from March 20- November 20. During this period, oil-gas consumption rose by 8 per cent to 100-105 million litres per day, while kerosene consumption decreased by 12 per cent to 8 million litres per day. Domestic consumption of fuel oil remained the same at 51 million litres per day, compared to the same period last year.

In 2013, Iran exported 135,000 bpd of fuel oil, which signifies that fuel oil exports increased in the first half of the year but then started to decline as a result of increased use of liquid fuel in domestic power plants after September. The Islamic Republic has not raised exports of other refined fuels but imports nearly 7 million litres of gasoline per day. Thus, Iran’s oil refining capacity has increased a little compared to 2012, but lower than in 2011.

Iran’s gas production level in 2012 was 160.5 billion cubic meters and the consumption level was 156.11 bcm, which indicates a 5.4 per cent and 1.4 percent increase when compared to 2011. In the current Iranian calendar year, the total gas consumption is likely to increase to 160 bcm. The country’s total gas refining level including gas imports from Turkmenistan amounted to 500 mcmpd. It is expected that the consumption level will reach 700 mcmpd in the winter.

In 2013, Iran’s gas output witnessed an increase after September- daily gas production increased by 3.1 mcmpd and surpassed 301 million cubic meters. Iran also experienced a rise by 12 mcmpd in refined gas output in South Pars.

Iran exported 7.5 bcm of gas to Turkey and its imports of 4.5 bcm from Turkmenistan remained the same compared to the previous year. Iran’s petrochemical exports declined by 13.8 per cent to 9 million tons in the first 8 months of the current Iranian solar year.

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Saudi enjoys lowest cost of oil extraction in the world

The shale gas revolution in U.S. has brought about some major changes. In the late 1970s the United States decided to encourage development of technology that would enable extraction of shale gas and oil. Since then the country has had access to oil and gas deposits that were previously unreachable. With time the fracking process of hydraulic fracturing has improved giving way to reduced drilling time and expenditure.

The world has nearly 345 billion barrels of available shale oil which for a long time could not be accessed. These deposits are larger than the existing reserves of Saudi Arabia. Saudi has about 300 million barrels of shale oil. And if the additional reserves can be tapped successfully, there would be substantial changes in the global oil market. In such a situation the role of Saudi Arabia, Kuwait, the UAE and Qatar becomes uncertain. The rising competition from shale oil will likely reduce the capacity of this region.

However, the key aspect is often forgotten- latest technologies have made extraction of shale gas and oil cost-effective, but the extraction cost remains the highest among different types of oil.

Saudi Arabia enjoys lowest cost of extracting oil in the world, which is just above $20 per barrel. Other Gulf nations like Iraq and Iran extract oil with only a minimum premium over Saudi Arabia.

Markets in China, Mexico and Libya are also sources of relatively cheap oil but these nations play a small role in international markets, primarily due to their low exporting capacity. Libya hasn’t been able to recover from the Arab Spring events and exports only 100,000 barrels per day. China produces 4 million bpd which is consumed by the domestic market. Mexico has also reduced exports due to reduced production and increasing domestic consumption.

Extracting non-conventional oil leads to much higher production costs. Oil from deep water extraction is extremely expensive when compared to the conventional GCC oil.

Extracting shale oil in U.S. and oil from sands in Canada amounts to $70-$100, five times Saudi Arabia’s cost. Despite a significant rise in production, oil prices have not come down. This is because the marginal cost of oil production is rising due to technical issues- drilling in locations like the Arctic Ocean or deep waters involves higher material costs and reduced productivity.

High oil prices are necessary for Gulf nations to meet their increasing monetary needs. However, in case of an extended period of low oil prices, a major share of the global oil production would have to be shut down as a result of high extraction costs. But the Gulf countries would continue making money by selling oil at $40 per barrel.

Thus, Saudi Arabia and its neighbouring countries will have a major role to play in the global energy markets.

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“Chemicals” – Boon or a Curse

Humans are the most advanced and intelligent species in the universe and their greatest exertion is Science, mainly the advancement in Chemical Industry.  The term “Chemicals” is conversationally tainted. As an individual, we are aware of the impact of the chemical industries on medical science, technology, cosmetics and many more. It exists in each and every sphere of our life and has become the most important part in once life.

The contribution done by the chemical industries has solved many queries of the human race. From medical to agricultural and cosmetics to baby products, chemicals are being used in each and every product. Medical science completely depends on chemical industries and its advancement. There was a time when diseases such as TB, typhoid, malaria & pneumonia were considered to be incurable, but in today’s generation medical science have made lot progress and now not only these diseases but even few forms of Cancers are also curable.

Through Chemical industry and engineering, science has imparted us with growth and development. In a broad term, chemical engineers are responsible for the conception and design of processes, for the purpose of production, transportation and transformation of materials. They have even assisted to build up atomic sciences, polymers, papers, dyes, drugs, plastics, fertilizers, foods, petrochemicals and many more.

There are many boons of chemical industry but it is equally responsible for the calamity in the globe. One of the biggest calamities in the world was the Chernobyl disaster, which was a catastrophic nuclear accident that occurred in 1986 at the Chernobyl Nuclear Power Plant in Ukraine, it was under direct jurisdiction of the central authorities of the Soviet Union. The tragedy had begun during a system test on 26th April, 1986 at reactor number four of the Chernobyl plant. It had suffered a catastrophic power increase, leading to explosions in its core.

Another catastrophe that had occurred in India was the Bhopal Gas Tragedy which took place in 1984. In the industrial world, it was noted as one of the worst disaster. This tragedy had occurred on 2nd and 3rd December, 1984 at the Union Carbide India Limited (UCIL) pesticide plant in Bhopal, Madhya Pradesh. More than 500,000 people were exposed to methyl isocyanate gas and other chemicals.

Chemicals used in cosmetics can also be harmful. With much of chemicals and preservatives used in today's cosmetics, more women are turning towards natural makeup that does not contain these harmful ingredients. Hair loss is also one of the major problems, due to exposure to certain chemicals used is shampoos and hair dyes. In our daily lives, one is exposed to toxic chemicals and radiation from a wide range of sources. Some of these exposures can also increase the risk of breast Cancer.

However, getting exposed to too much of chemical can be harmful even those chemicals like water or fluoride. It is very important to be more explicit as all matters are made of chemicals.

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A wave of change in the Global Chemical Industry

The global chemical industry is said to undergoing huge changes. This transformation was brought about by the increasing focus on and growth of the Chinese economy and other emerging markets. Other factors like the effects of the US shale gas revolution have led to restructuring of the chemical sector and the logical capabilities that sustain the industry.

Nearly two decades ago the effects of globalisation caused a shift in the chemical production centres, which moved from single economies to large continental clusters. These clusters serve their hinterland and also market their products on a global scale. For instance, in the Middle East, both the Gulf Emirates and Saudi Arabia are selling their output into some of the key markets, including Asia, North America and Europe. However, the region now faces tough competition from an unlikely source. The American chemical sector was on the verge of decline, but the shale gas revolution in the US and Canada has improved the industry’s prospects of becoming a major exporter to markets like China. The importance of the chemical logistics sector cannot be denied. This sector provides chemical producers with an opportunity to gain access to global markets.

This shift in global trade has proved beneficial for logistics providers. The beneficiaries include marine bulk storage providers led by Vopak, operators of tank container who can flex their business model to an intercontinental reach.

The chemical tanker sector is more under control when compared to the shipping sector, however the tanker sector is not booming. The chemical terminal and businesses are affected by rapid changes in the chemical trade flows. However, long term developments mean excellent opportunities for those in the right location. But things can go haywire for the ones in the wrong location. Small and medium-sized production locations are threatened by the comparative cost of energy and large scale economies in logistics.

Logistics for downstream products is varying at a slower rate due to the slow change in the nature of customer demand. The most significant development is the rise in demand in China. However, India, South East Asia, Eastern Europe, Turkey and parts of South America continue to have a large appetite for downstream chemical logistics development.

Even the developed markets have witnessed the effects of changing patterns of chemical trade on downstream logistics. The chemical logistics sector is expected to grow by 3 per cent, keeping in-line with the expansion of the chemical sector.

The logistics providers will benefit from a number of opportunities provided by the chemical sector, but the ones who succeed will be the ones who identified the new opportunities and placed themselves in a position to take advantage of it.

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Does the end of Iran’s economic isolation bode well for India?

Iran’s economic and political isolation might end sooner than expected. A pact between Iran and the five major world powers has enabled the Islamic Republic to use nuclear energy for peaceful purposes. India has welcomed this agreement and is glad that business with Iran can now be carried out with much more ease and in a transparent manner. Western sanctions imposed upon Iran had a disastrous effect on the country’s economy. Iran is home to vast oil and gas reserves, which when put to use can make Iran a major petrochemical hub. But the sanctions imposed by the western nations had restricted hydrocarbon exports, crippled operations at refineries and affected production and export of petrochemicals. Without access to technology, financial support, technical know-how and markets, Iran had to shelve plans to increase petrochemical output. Iran’s economy was on the verge of collapse.

India continued to maintain social, political and economic ties with Iran, despite the hurdles created by the sanctions. India used to import large quantities of crude oil from Iran but the sanctions forced our nation to cut down imports to much lower levels. But recent developments can lead to a more broad-based and a more balanced trade between the two countries. India heaved a sigh of relief when the new agreement was signed, especially because of the positive impacts it could have on our economy.

Iran’s entry into the world economic order meant that the Iran-India gas pipeline project could become a reality. But the difficulties with the project persist primarily due to the strained relations between India and Pakistan. The two neighbours will have to reach an understanding in order for the project to be completed. India requires large quantities of gas for local production and this demand can be met through LNG imports from Africa, Australia and the Middle East. However, pipeline supplies from Iran can compete with any of these supplies but chances are that the project may never see the light of day.

The possible end of Iran’s economic isolation will definitely moderate oil prices. If Iran manages to expand production within 2-3 years oil prices will plummet, benefitting countries that rely on imports, including India.
Despite access to large gas and oil reserves the Iranian petrochemical industry has failed to make its mark. Petrochemical production and exports had been badly affected by the sanctions and efforts to expand capacity were futile. The lifting of sanctions will bring about radical changes in the way the petrochemical industry of Iran functions. While the return to normalcy might be slow, government efforts can help Iran emerge as a major petrochemical hub by the end of the decade.

India exports sizeable quantities of chemicals from Iran, including basic chemicals (methanol, isobutanol, vinyl acetate, ethanolamines), polymers (PVC, PE, SBR, PBR, ABS), aromatics (mixed xylenes, toluene), LPG (propane, butane), fertilizers and raw materials (ammonia, urea, sulphur, ammonium nitrate). The sanctions had forced India to reduce the volume of imports. However, Iran can now increase the amount of imports without any hassles. The coming few years are likely to witness a rise in demand for basic chemicals in India. India’s imports of urea and ammonia are also expected to increase as domestic production based on costly gas may make imports seem like a cheaper alternative.

India can also invest in downstream chemical business in Iran, which includes technical agrochemicals, pharmaceutical ingredients and specialty chemicals. Thus, a revitalized Iran will do wonders for the Indian economy.

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Alcohol based chemicals- a key contributor to the growth of the Indian Chemical Industry

The Indian chemical industry has various segments, which for years have contributed to the overall development and growth of the industry. Alcohol based chemical industry holds an important position in the Indian chemical industry and has made significant contributions to the boost the Indian economy. Alcohol is an extremely important feedstock for the production of basic chemicals. Alcohol is used for diluting, blending and other industrial purposes. Alcohol is also used for blending with petrol.

The two countries leading ethanol production on a global scale are United States and Brazil, followed by EU, China and India.

The alcohol based chemical industry in India currently stands at $1.1 billion. The industry provides livelihood to about 7,500 people and envisages an employment increase of 5 per cent. Some of the important alcohol based chemicals produced in India are acetic acid, ethylene glycol, glyoxal, ethylene oxide derivatives, acetaldehyde etc. The end user industries of these chemicals include dyestuffs, personal care products, pharmaceuticals, agrochemicals, pigments, flavours and fragrances etc.

India has 20 major manufacturing units and about 340 distilleries. However, the capacity utilization is low as a result of lack of access to sufficient quantities of molasses. Also, production of alcohol has been declining despite a steady increase in demand. Thus the industry has to depend on imports to meet the rising demand for alcohol.

The alcohol based chemical industry aspires to grow at the rate of 7-8 per cent to reach $1.7 billion by the end of the XIIth Five Year Plan period. However, considering the current condition of the industry this growth target can be achieved only with the support and encouragement of the Indian government.

The industry has proved its heightened environmental awareness by manufacturing chemicals using renewable feedstock. Its contribution to green chemistry has given the industry a competitive edge. The green chemicals that the industry produces has helped limit GHG emissions. Also, carbon footprint of alcohol based chemicals is lower compared to fossil fuel based chemicals. The industry has also made significant contributions to the foreign exchange reserves of the country.

However, the industry is not without weaknesses and has several obstacles to overcome. Volatile prices of molasses and alcohol have adversely affected fluctuation in prices of feedstock. Limited availability of industrial alcohol and increasing demand for alcohol for blending with petrol has made industry heavily dependent on imports.

The high export/import tax, transport fee, purchase tax, vend fee, de-naturalization fee etc have made it very difficult for the industry to thrive. The innumerable state taxes affect the competitiveness of the industry.

Only government support and encouragement can help the industry scale new heights and explore better growth opportunities. The government should find a solution to the problem of inadequate supply of molasses. The central government should regulate the movement of molasses and ethyl alcohol as this move would prevent difference in taxation applied by different countries.

In order to make the industry more competitive, the Indian government should prioritize supplying ethanol as feedstock for green chemicals. This step would increase employment, save precious foreign exchange, generate more capital investment opportunities and enable improved utilization of existing capacity.

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