India

Population Threat to India’s economy

18 Apr 2017   India

As of Thursday, April 13, 2017, India’s population, based on the latest United Nations estimates, was 1,339,040,095, only some 47 million more than China’s total population on that day. The UN estimate (Worldometers) records India’s population as 17.86 per cent of the total world population as against China’s 18.47 per cent. In 2016, India’s population grew by 1.20 per cent, compared to China’s 0.54 per cent despite the latter’s lately liberalised two-child-per-family population policy. Demographers have forecast that India may overtake China’s population as early as in 2022, that is five years from now. Currently, China ranks No.1 in the list of countries (and dependencies) by population. India is No. 2. At the time of India’s Independence in 1947, the country’s population was only around 330 million. It went up to 520 million in 1968, said a report in an External Affairs Ministry publication, that year. Indira Gandhi was India’s Prime Minister, then. The population growth rate was always politically sensitive, and Mrs Gandhi avoided its official reference, until her younger son, Sanjay Gandhi, made it a part of his five-point programme during the national emergency period and started a vigorous birth-control campaign through ‘forced’ sterilisation that was said to be partly responsible for the Congress party’s crushing defeat in the post-emergency 1977 Lok Sabha election. Ever since, every government went for ‘self-control for birth control’ policy until BJP’s newly-elected Assam Chief Minister Sarbananda Sonowal announced a few weeks ago a new rigorous-looking population control policy — first time by any state in this country — for Assam which has been witnessing a big population explosion due to high birth rate as well as constant illegal immigration from bordering Bangladesh.

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India Oil Demand Shrinks 3rd Month Amid Demonetization Drag

11 Apr 2017   India

Diesel use rises 0.3 percent, gasoline demand up 2.9 percent Consumption in January-March about 3% lower from year earlier India’s oil consumption fell for a third straight month, with the use of bitumen and naphtha declining and diesel demand growth flat, amid the continuing effects of demonetization. Total fuel consumption fell 0.7 percent to 17.36 million tons in March, according to the Oil Ministry’s Petroleum Planning and Analysis Cell. That puts consumption during January-March about 3 percent lower than the same period last year as the economy slows under the impact of Prime Minister Narendra Modi’s decision in November to remove high-denomination currency notes from circulation. “I think the resilience of demand in the face of an incredibly high 2016 base is impressive, especially given the turbulence caused by demonetization,” Virendra Chauhan, an oil analyst at Energy Aspects, said. “Gasoline, diesel and LPG, the key drivers of Indian oil […]

Iran leapfrogs Iraq as India’s no. 2 oil supplier in February: trade data

13 Mar 2017   India, Iran, Iraq

India’s oil imports from Iran rose nearly 17 percent in February from a month earlier as refiners received less crude from key OPEC producers Saudi Arabia and Iraq after an OPEC deal to cut output, shipping data showed on Monday. The jump meant Iran replaced regional rival Iraq as India’s second-biggest oil supplier – a role Tehran used to occupy before Western sanctions were imposed against it over the country’s disputed nuclear program. While Saudi Arabia remained the biggest oil supplier to India, ship tracking data and a report compiled by Thomson Reuters Oil Research and Forecasts showed imports from Iran rose to 647,000 barrels per day (bpd) in February. That was 16.7 percent more than January, and almost trebled from February […]

India’s Oil Demand Is Set To Break More Records

22 Feb 2017   India

India continues to look for alternatives to oil imports as its auto sector, economy, and population continue to boom. India’s oil consumption growth reached a record-level 11 percent last year as an increasing urban population with rising income fueled greater use of cars, trucks, and motorbikes. The country consumed 196.5 million tons of oil products in 2016, up from 177.5 million tons in 2015, according to the Oil Ministry’s Petroleum Planning & Analysis Cell. Demand for gasoline jumped 12 percent last year to 23.7 million tons, while diesel demand grew 5.6 percent to 76.7 million tons. The U.S. Department of Energy reports that India was the fourth largest consumer of crude oil and petroleum products in the world in 2015, after the U.S., China, and Japan. The country depends heavily on imported crude oil, mostly from the Middle East, similar to China. More than 80 percent of its crude […]

India’s Air Pollution Rivals China’s as World’s Deadliest

14 Feb 2017   India

India’s rapidly worsening air pollution is causing about 1.1 million people to die prematurely each year and is now surpassing China’s as the deadliest in the world, a new study of global air pollution shows. The number of premature deaths in China caused by dangerous air particles, known as PM2.5, has stabilized globally in recent years but has risen sharply in India, according to the report, issued jointly on Tuesday by the Health Effects Institute, a Boston research institute focused on the health impacts of air pollution, and the Institute of Health Metrics and Evaluation, a population health research center in Seattle. India has registered an alarming increase of nearly 50 percent in premature deaths from particulate matter between 1990 and 2015, the report says. “You can almost think of this as the perfect storm for India,” said Michael Brauer, a professor of environment and health […]

India’s Oil Demand Plunges Most in 13 Years Amid Cash Ban

13 Feb 2017   India

India’s monthly oil demand fell the most since May 2003 as the government’s crackdown on high-value currency notes continued to reverberate through the country’s $2 trillion economy. Fuel consumption fell 4.5 percent to 15.5 million tons in January from 16.2 million tons a year ago, the Oil Ministry’s Petroleum Planning and Analysis Cell said Friday. Diesel use, which accounts for about 40 percent of total fuel demand in India, dropped 7.8 percent to 5.8 million tons, the biggest decline since September. Gasoline consumption fell the most since June. Expansion in the world’s fastest-growing major economy is under pressure after Prime Minister Narendra Modi in November withdrew high-value currency notes in a country where almost all consumer payments are in cash. Growth in gross domestic product may slow to 6.5 percent in the year through March from 7.9 percent the previous year, according to an Economic Survey presented by the […]

India plans oil giant to take on global rivals

1 Feb 2017   India

India plans to form a giant national oil company by combining other state-owned firms, finance minister Arun Jaitley said on Wednesday, as New Delhi wants to expand its foreign presence to meet growing domestic fuel demand. India, struggling to lift its local oil production, imports about 80 percent of its oil needs. Prime Minister Narendra Modi in 2015 set the goal of cutting this import dependence to 67 percent by 2020. “We propose to create an integrated public sector oil major which will be able to match the performance of international and domestic private sector oil and gas companies,” Jaitley said in his budget speech. India has about a dozen state-run oil and gas companies – including Indian Oil Corp ( IOC.NS ), Oil and Natural Gas Corp ( ONGC.NS ), Hindustan Petroleum Corp ( HPCL.NS ) and others – but alone they do not have the financial power […]

Explorers in World’s Fastest-Growing Oil Market Seek Tax Breaks

20 Jan 2017   India

Explorers in the world’s fastest-growing oil market are seeking lower taxes on crude produced domestically to encourage fresh drilling as India tries to reduce its dependence on energy imports. State-run Oil & Natural Gas Corp. and the biggest private producer Cairn India Ltd. want Finance Minister Arun Jaitley to at least halve the tax on crude oil production in the federal budget due Feb. 1. India surprised some explorers last year with its 20 percent levy on crude produced locally, moving from a fixed charge. Companies pay more now with crude near $50 a barrel than they did under the old system when it was double the price. “Globally, given the low oil price scenario, governments have provided incentives to stimulate and attract investments,” said Sudhir Mathur, interim chief executive officer at Cairn India. “In India, the cess rate of 20 percent acts as a disincentive to increase production […]

India’s Auto Sales Trigger Oil Demand Rising 11% to Record

11 Jan 2017   India

No compatible source was found for this media. India’s oil consumption surged 11 percent to the most on record last year as rising income levels spur greater use of cars, trucks and motorbikes, expanding fuel demand. The world’s second most populous nation consumed 196.5 million tons of oil products in 2016, up from 177.5 million tons in 2015, according to the Oil Ministry’s Petroleum Planning and Analysis Cell. Gasoline demand increased 12 percent in the year to 23.7 million tons and diesel consumption grew 5.6 percent 76.7 million tons. Greater automotive use spurred by rapid economic expansion has made India a bright spot for global oil demand and local refiners are racing to add capacity. The International Energy Agency forecasts India to be the fastest-growing crude consumer in the world through 2040. “We expect gasoline growth at 10 percent” and oil demand to expand by 7.6 percent this year, […]

India’s gasoline thirst shows no sign of being slaked: Kemp

11 Jan 2017   India

India’s gasoline consumption continues to grow rapidly as an increasing number of individuals purchase their first motorized vehicle, helping drive the fastest growth in fuel demand in the world. India’s gasoline consumption rose more than 12 percent in 2016 compared with 2015, according to preliminary fuel sales figures compiled by the Ministry of Petroleum and Natural Gas ( tmsnrt.rs/2ierliq ). Motor spirit consumption averaged 574,000 barrels per day in 2016, up from 513,000 bpd in 2015 and 447,000 bpd in 2014. Consumption is being driven by an enormous increase in the number of drivers on the country’s roads for the first time. The number of registered motor vehicles hit 210 million by March 2015 up from just 105 million in March 2008 (“Road Transport Yearbook”, Ministry of Road […]

Feature: India aims to revive oil, gas output in pursuit of energy security

30 Dec 2016   India

India is making a concerted effort to lower its reliance on imported crudes with the government focused on boosting domestic production, promoting renewables and improving the refining process, at a time of increasing demand. Highlighting the growing importance of energy security, Indian Prime Minister Narendra Modi told delegates as much at an energy conference in early December. “We need to increase our domestic oil and gas production and reduce import dependence. I have set a target to reduce import dependence by 10% by [fiscal] 2022,” Modi told the Petrotech conference in New Delhi, referring to crude oil. “This will have to be achieved during a period of increasing oil consumption.” India is witnessing double-digit growth in oil product demand on the back of sustained GDP growth and rising disposable incomes. The country imported 197.5 million mt (4.33 million b/d) of crude oil in the first 11 months of 2016, […]

India data: Nov crude oil imports rise 12.7% on year

20 Dec 2016   India

India’s crude oil imports in November rose 12.7% year on year to 18.76 million mt, or an average 4.58 million b/d, latest provisional data from the country’s Petroleum Planning and Analysis Cell showed. The imports in November were 3.3% higher than October. Domestic refiners have been trying to run refineries at over 100% capacity as local demand soar. Crude imports are expected to rise in financial year 2016-17 (April-March) as the newly commissioned 15 million mt/year Paradip refinery on the east coast ramped up to capacity, and the west coast Kochi refinery completed an expansion to 15.5 million mt/year in May, from 9.5 million mt/year. LPG imports in November rose 38.2% year on year to 1.01 million mt and also 0.5% higher than October. Naphtha imports in November rose 26.6% year on year to 200,000 mt, but fell 7.0% from October. –Ratnajyoti Dutta, newsdesk@spglobal.com –Edited by Irene Tang, irene.tang@spglobal.com […]

The World’s Most-Polluted Region Faces a Conundrum

16 Dec 2016   India

Rail tracks shrouded in smog in New Delhi. Sandeep Singh Parmar embodies in one man the conundrum facing the most-polluted region in the world. Parmar, 35, who lives in New Delhi, also has a 180-hectare family farm in the northern state of Haryana. After every harvest, leftover stubble at his farm is burnt, like thousands of others, blanketing north India in a dense, heavy smog that can be seen by satellites and leaves people gasping for breath. This year, the harvest has been particularly good, boosting Parmar’s farm earnings. But, in a twist of fate, he’s spent most of it buying air purifiers so that his 2 1/2 year-old son can breathe. “The air has been really bad this year,” Parmar said. “My son fell sick and he was wheezing and vomiting and gasping for air because of the pollution.” Parmar’s tale shows the dilemma facing India’s policy makers […]

India data: Nov oil products demand rose 12% on year to 4.3 Mil b/d

16 Dec 2016   India

India’s demand for oil products in November rose 12% year on year to 16.6 million mt, or 4.35 million b/d, latest provisional data from the Petroleum Planning and Analysis Cell showed. The higher growth in November was the second straight month of positive growth, after a negative growth in September when demand fell 0.8% year on year to hit a two-year low of 14.6 million mt, or 3.82 million b/d. In October, demand for oil products rose 6.6% year on year to 16.5 million mt, as demand for transport fuel rose after the rainy season ended in September. “Half of the November 2016 demand growth was due to higher petrol/diesel sales, which had been elevated as fuel stations continued accepting old high-denomination currencies,” said a Credit Suisse report Wednesday. Article continues below… Platts 4th Annual Asian Refining Summit March 9 to 10, 2017 | Novotel Clarke Quay, Singapore Running […]

India pushes Nigeria for more oil term contract volumes

7 Dec 2016   India

Indian state-run oil refiners have called for Nigeria to increase its total term contract volumes next year by more than 20% as demand from the South Asian country climbs, an official from Nigeria’s state-owned Nigerian National Petroleum Corporation said. This request comes a few weeks before Nigeria’s crude oil term lifting contracts for 2017 are finalized, which will be decided by mid-December. India as the largest buyer of Nigerian crude, has always said it should have a longer-term arrangement with NNPC to ensure security of supply. “Three Indian companies mentioned that they are looking for a combined total of 11 million mt [in 2017] from 9 million mt [this year],” Anibor O. Kragha, group executive director at NNPC, told S&P Global Platts in an interview on the sidelines of the Petrotech conference in New Delhi late Monday. Article continues below… Platts 4th Annual Asian Refining Summit March 9 to […]

Oil Market’s New Engine Losing Steam on Modi Cash Crackdown

5 Dec 2016   India

Oil demand growth in the world’s fastest-growing crude market may weaken as the government’s cash crackdown slows the economy. Diesel and gasoline use, which account for more than half of India’s oil demand, will slow or contract this month and possibly early next year, according to Ivy Global Energy Pte., FGE and Centrum Broking Ltd. Expansion in the world’s fastest-growing major economy is widely expected to ease temporarily after Prime Minister Narendra Modi last month withdrew high-value currency notes in a country where almost all consumer payments are in cash. “As the Indian economy largely depends on various cash-intensive sectors, the demonetization saga will no doubt slow down economic growth in the near term,” said Sri Paravaikkarasu, head of East of Suez oil at FGE in Singapore. “Moving into the first quarter, an expected slowdown in the economic growth should marginally drag down oil consumption, particularly that of transport […]

Iran Pulls Ahead in Race to Supply India With Oil

29 Nov 2016   India, Iraq

Iran is pulling ahead in the race for market share in the world’s fastest-growing oil consuming nation, India, weakening the hold of rival OPEC members amid the group’s struggle to agree on output cuts. Iran, which dramatically boosted crude sales in 2016 after they were curbed for years by sanctions over its nuclear program, is challenging the sway of Saudi Arabia and Iraq as it offers perks for refiners to help rebuild its standing in Asia’s third-largest economy. Cargoes to fill strategic petroleum reserves helped Iran emerge last month as India’s biggest supplier for the first time in 2016, according to data compiled by Bloomberg. Iran’s progress in building market share assumes significance amid a glut that’s more than halved oil prices since 2014. Members of the Organization of Petroleum Exporting Countries meet Wednesday to try to finalize the terms of a production decrease with some countries, including Iran, […]

Bruised Oil Nations Seek Solace in Fastest Growing Guzzler

24 Nov 2016   India

Nigeria, Venezuela are among OPEC’s most hurt by the oil rout Indian oil demand is forecast to double through 2040 As the oil market anxiously awaits OPEC’s decision next week, some of the countries hardest hit by the biggest price crash in a generation may have found a lifeline outside of the group. India, the world’s fastest growing crude consumer whose appetite for fossil fuels is forecast to surge in the next two decades, will likely decide next month on whether to advance $15 billion to Nigeria for future supplies. Essar Oil Ltd., operator of India’s second-biggest refinery, has struck a $13 billion deal which may lead to the plant processing more oil from Venezuela. With prices languishing at under $50 a barrel, about 55 percent below its 2014 peak, smaller sellers have been the most vulnerable to falling revenues. Nigeria has been pushed to the brink of its […]

Two Children, One Rich, One Poor, Gasping for Air in Delhi’s Smog

24 Nov 2016   Air Quality, India

In the dense smog that engulfed India ’s capital early this month, a baby named Vaishnavi gasped through the night. Inside the concrete room that her father and mother rent for $20 a month, they took turns staying up, laying a hand on her rib cage, feeling it move up and down. Her coughing fits became so violent that she vomited, milk mixed with ropes of sputum. Three times they thought she would not survive until morning. Twenty miles away, inside an elegant, high-ceilinged house in an elite neighborhood, a 4-year-old boy named Mehtab was also struggling to fill his lungs with air. His mother, heavily pregnant, sat beside him, administering corticosteroids through a nebulizer mask once an hour. But once an hour wasn’t enough. Mehtab’s father fought waves of panic as they waited for the sun to rise. The boy looked, to him, like a […]

India aims to boost low-grade coal sales while global prices high

21 Nov 2016   Coal, India

India is trying to boost sales of its low-quality coal by offering more of the fuel at home and initiating steps to lower freight costs, while global prices are high, with the government hoping the moves will help cut imports. State-controlled Coal India, the world’s largest miner of the fuel, has sharply boosted output in the past two years but has struggled to sell all of that due to softer domestic demand and the availability of superior-grade foreign coal at competitive rates, until recently. Benchmark Australian coal prices have more than doubled this year, helped by reduced Chinese mining and strong demand across Asia and Europe just when exporters cut output. But prices have begun to recoil this month as China eased restrictions on domestic mining. “Our prices are already very competitive,” India’s Coal Secretary Anil Swarup told Reuters. “If transportation costs can be brought down, more and more […]

Smog lifts, but companies’ view of polluted Delhi skies is dim

11 Nov 2016   India

As New Delhi grappled with its worst smog in 17 years, the head of India’s largest mobile payment firm got on a plane and left, one of thousands of professionals escaping pollution that could cost the capital and the broader economy dear. Vijay Shekhar Sharma, founder of PayTM payment start-up, left last Sunday for a temporary stay in Mumbai, worried about the impact of hazardous clouds of dust, smoke and fumes that hang over Delhi during the winter months. “It became very visibly clear that it is going to be tough in Delhi, especially with young kids,” Sharma said in Mumbai. “We were worried that it could create long-term (health) problems.” His company, which has considered moving from its base outside Delhi, has installed air purifiers, brought in plants and masks and offered extra health assistance. […]

A Lesson for India in a Fog So Thick It Could Kill a Cow

11 Nov 2016   India

In December 1873, London was blanketed for a week in a yellow fog so thick that people could not see their feet. “Ladies & gentlemen,” Mark Twain said in a public lecture at the time, “I hear you, & so know that you are here — & I am here, too, notwithstanding I am not visible.” Some 780 people died and 50 prize cattle on display at the Smithfield Club panted, wheezed and eventually died of asphyxia. Still, it took 83 more years of noxious air before the country passed the Clean Air Act in 1956. This history, described in “ London Fog: The Biography ,” is a lesson in just how difficult it is for governments to put public health first when it comes into conflict with economic development, the political power of industry and even the polluting habits of their people. The government of India is up […]

Smog Chokes Delhi, Leaving Residents ‘Cowering by Our Air Purifiers’

9 Nov 2016   Air Quality, Coal, India

For days, many in Delhi have been living as if under siege, trying to keep the dirty air away from their children and older parents. But it is not easy: Open a window or a door, and the haze enters the room within seconds. Outside, the sky is white, the sun a white circle so pale that you can barely make it out. The smog is acrid, eye-stinging and throat-burning, and so thick that it is being blamed for a 70-vehicle pileup north of the city. If in past years Delhi’s roughly 20 million residents shrugged off wintertime pollution as fog, over the past week they viewed it as a crisis. Schools have been ordered closed for three days — an unprecedented measure, but not a reassuring one because experts say the concentration of pollutants inside Indian homes is typically not much lower than outside. Levels […]

India: New Delhi closes schools in air pollution fight

8 Nov 2016   India

The Indian city of New Delhi has closed schools, halted construction and ordered that all roads be doused with water to settle dust in order to combat crippling air pollution. The capital, which is one of the world’s dirtiest cities, saw levels of PM2.5, tiny particulate matter that can clog lungs, climb to over 900 micrograms per cubic metre on Saturday. This is more than 90 times the level considered safe by the World Health Organisation and 15 times the Indian government’s norms. The severe pollution at the weekend followed a week of constant grey smog. New Delhi’s chief minister, Arvind Kejriwal, said schools would be closed for three days, and all construction and demolition activity stopped for at least five days. He also said a coal-fuelled power plant on the edge of the […]

Delhi smog: Respiratory issues along with cases of asthma and allergies on the rise

7 Nov 2016   India

New Delhi: The smog that has set in post Diwali in the national capital Delhi, has begun to show its dark side, with more cases of people complaining of asthma, allergies, severe breathlessness and other respiratory problems. As the city grapples with the worst smog to hit Delhi in 17 years, doctors and experts say that besides spike in fresh cases, health complications have aggravated in people having a history of asthma, allergy or other related ailments. “Earlier 15-20% pollution-related ailment cases were reported at our hospital. But now these have gone up to 60%. “The most common problem is related to respiration. But this time we are seeing a rather large number of cases of severe breathlessness, coughing and sneezing and bronchiolitis due to the smog,” says Dr SP Byotra, senior consultant and chairman of the department of medicine at Sir Ganga Ram Hospital (SGRH). “Children and elderly […]

India Raises Refinery Output By 9% In September

25 Oct 2016   India

Essar tank truck Monsoon torrents and regional civil disturbances did not affect India’s hunger for fuels last month, with local refineries processing 4.82 million barrels per day, up 9.27 percent on the year, according to preliminary government data cited by Reuters. The increase highlights India’s booming fuel demand as well as efforts from state-owned downstream majors to satisfy it, yet the country still relies on imports for 80 percent of its fuel demand. This puts it at a disadvantage to other huge consumers, as its local crude oil production is disproportionately small, at 712,800 bpd in September, down 4.09 percent on the year. Asia’s fastest-growing economy took a breather in September, as fuel demand declined by 0.8 percent on the year to 3.82 million bpd due to heavy rains and what Platts called “regional unrest,” regarding water-sharing rights in two states in southern India, Karnataka and Tamil Nadu. However, […]

Analysis: India’s oil demand seen rebounding after sluggish September

24 Oct 2016   India

After posting double-digit growth in August, India’s oil products demand in September declined as widespead rains and regional unrest took toll on transport, but analysts expect a rebound in October on the back of firm fundamentals and following the end of the monsoons. The sharp growth in consumption of LPG and jet fuel in September was not enough to offset a drop on demand for diesel and gasoline, pulling down overall oil products demand 0.8% year on year to 14.6 million mt, or 3.82 million b/d, latest provisional data from the Petroleum Planning and Analysis Cell showed. “The conclusion of seasonal rainfalls, the onset of winter, and improving industrial demand amid festive season should propel growth in coming months, notwithstanding any increases in crude prices,” said Sri Paravaikkarasu, senior consultant and Asia downstream specialist at Facts Global Energy. The negative growth recorded in September was a steep decline from […]

Rains, Unrest Slow India Oil Demand First Time in Two Years

19 Oct 2016   India

Diesel use drops 11.4% y-o-y, first decline since July 2015 Monsoon rains, violence in southern states hurt demand: BPCL India’s oil product demand contracted for the first time in almost two years amid strong monsoon rains and unrest in some provinces. Fuel use during September in the world’s fastest growing consumer fell to 14.6 million tons last month, down 2 percent from a year earlier, according to the oil ministry’s Petroleum Planning & Analysis Cell. That’s the first time demand has fallen year-on-year since October 2014. In addition to seasonal rains that damped demand, violent protests in the southern Indian states of Karnataka and Tamil Nadu over sharing river water disrupted fuel supplies, S. Ramesh, director-marketing at India’s second-largest oil retailer Bharat Petroleum Corp., said in a phone interview. Unrest in the northern state of Jammu and Kashmir also affected demand, he said. “This was an unusual month. There […]

Russia’s Mega India Oil Deal Takes Turf War to Mideast Backyard

18 Oct 2016   India, Russia

Rosneft may use Venezuelan crude at Essar’s Vadinar refinery India forecast by IEA as world’s fastest growing oil consumer A $13 billion deal involving Russia in India threatens to weaken the grip of Middle East crude suppliers in the world’s fastest growing oil market. Rosneft PJSC is part of a group of investors that beat suitors from Saudi Arabia and Iran to buy Essar Oil Ltd.’s Vadinar refinery, India’s second-biggest, in a deal announced over the weekend. Russia’s largest oil producer is following a strategy by resource-rich firms and nations to secure outlets for their output, and may supply the facility with Venezuela crude and challenge Middle East exporters that provide about two-thirds of the country’s imports. “India will be the most important product-growth market over the next 25 years, making it important to Russia,” according to Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein & Co. […]

Russia’s Mega India Oil Deal Takes Turf War to Mideast Backyard

17 Oct 2016   India

Rosneft may use Venezuelan crude at Essar’s Vadinar refinery India forecast by IEA as world’s fastest growing oil consumer A $13 billion deal involving Russia in India threatens to weaken the grip of Middle East crude suppliers in the world’s fastest growing oil market. Rosneft PJSC is part of a group of investors that beat suitors from Saudi Arabia and Iran to buy Essar Oil Ltd.’s Vadinar refinery, India’s second-biggest, in a deal announced over the weekend. Russia’s largest oil producer is following a strategy by resource-rich firms and nations to secure outlets for their output, and may supply the facility with Venezuela crude and challenge Middle East exporters that provide about two-thirds of the country’s imports. “India will be the most important product-growth market over the next 25 years, making it important to Russia,” according to Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein & Co. […]

Emerging Climate Accord Could Push A/C Out of Sweltering India’s Reach

13 Oct 2016   India

A thrill goes down Lane 12, C Block, Kamalpur every time another working-class family brings home its first air-conditioner. Switched on for a few hours, usually to cool a room where the whole family sleeps, it transforms life in this suffocating concrete labyrinth where the heat reached 117 degrees in May . “You wake up totally fresh,” exulted Kaushilya Devi, a housewife, whose husband bought a unit in May. “I wouldn’t say we are middle class,” she said. “But we are closer.” But 3,700 miles away, in Kigali, Rwanda, negotiators from more than 170 countries gathered this week to complete an accord that would phase out the use of heat-trapping hydrofluorocarbons, or HFCs, worldwide, and with them the cheapest air-conditioners that are just coming within reach of people like Ms. Devi. Millions of Indians might mark the transition from poverty with the purchase of their first air-conditioner, […]

After Paris, India gets support for solar power

5 Oct 2016   Climate, India, Solar

Asian Development Bank lends India a hand to help advance rooftop solar power programs. Photo by Craig Russell/Shutterstock After depositing its signature to the Paris climate deal, India’s low-carbon objectives received financial support to advance solar energy, a lender said. The Asian Development Bank said it would set aside $500 million in funding to help advance a rooftop solar energy system to help India acclimate to what, for the country’s energy sector, is emerging technology. “There is huge potential for India to expand its use of solar rooftop technologies because of the sharp drop in the price of solar panels, meaning the cost of producing solar energy is at or close to that from fossil fuels,” Anqian Huang, a regional specialist at the ADB’, said in a statement. “Sourcing more solar energy will also help India meet the carbon emissions reduction target that it has committed to as part […]

Record Oil Demand Buffers One Corner of Shipping

16 Sep 2016   India

Indian carriers are benefiting from surging oil imports Most of the South Asian nation’s fleet comprises tankers As the shipping industry grapples with a prolonged slump in demand, carriers in India are grateful for the bright spot of record domestic fuel consumption. The nation of 1.3 billion people is expanding at the fastest pace among major economies and is set to import an unprecedented amount of crude oil to fuel growth. That’s helping the tanker-heavy fleets of Shipping Corp. of India Ltd., Great Eastern Shipping Co. and Mercator Ltd., India’s three largest carriers. “Because our energy consumption is so high — with the population and the sheer size of the country — demand will continue to rise,” B. B. Sinha, a director and former chairman of Shipping Corp. of India, said in an interview in Mumbai. Oil and liquefied natural gas offer good opportunities, he added. While a trade […]

India’s new motorcycle owners drive gasoline boom: Kemp

16 Sep 2016   India

India’s gasoline consumption is growing rapidly as millions of additional households buy motor cars and especially motorcycles as a status symbol amid growing prosperity. Gasoline consumption averaged 550,000 barrels per day between June and August, an increase of nearly 15 percent from 480,000 bpd a year earlier. Gasoline consumption hit a new record of 600,000 bpd in August, according to the Ministry of Petroleum and Natural Gas. Consumption remains low compared with the advanced economies or China, the other emerging-market giant, but no other country is exhibiting such fast and sustained growth ( tmsnrt.rs/2cKZ16B ). The number of registered vehicles on India’s roads has been doubling every seven years and hit 182 million in 2013, according to the Ministry of Road Transport and Highways ( tmsnrt.rs/2ctnRFe ) (“Road […]

Global coal power plans fall in 2016, led by China, India: study

7 Sep 2016   China, Coal, India

A worker speaks as he loads coal on a truck at a depot near a coal mine from the state-owned Longmay Group on the outskirts of Jixi, in Heilongjiang province, China, October 24, 2015. The amount of coal-fired power generation under development worldwide has shrunk by 14 percent this year, driven down by China as it struggles with oversupply and tries to promote cleaner energy, a study showed on Wednesday. India also introduced policies in the first half of 2016 curbing plans for coal-fired plants, partly due to under-utilization of existing plants, according to a Global Coal Plant Tracker run by non-government and anti-coal group CoalSwarm. Overall, the amount of coal-fired generating capacity in pre-construction planning fell 14 percent to an estimated 932 gigawatts (GW) in July from 1,090 GW at the start of the year, it said. The overall decline, of 158 GW, was almost equal to the […]

Economy of energy-hungry India may face headwinds

23 Aug 2016   India

The economy of energy-hungry India is on pace for steady growth that outpaces the global economy, though gains are moderating, Moody’s Investors Service said. “Moody’s Investors Service says that India’s credit profile is supported by the strong growth potential of its large economy and the high private savings rate which underpins the government’s access to domestic financing at relatively favorable terms,” the ratings agency said in a report published Monday. Lower crude oil prices, relative to 2014 levels , are dampening the fiscal strains on an economy growing at a rate of around 7 percent. Moody’s said tighter monetary policies and favorable developments like lower oil prices translated to stable macroeconomic development for India. The August economic forecast from the Organization of Petroleum […]

Drop in the ocean: India’s strategic oil reserves unlikely to stir market

28 Jul 2016   India

India’s initial plan to build-up its strategic petroleum reserves (SPR) is not shaping out to be the dramatic event that some in the market had hoped could help reignite global oil demand. While New Delhi has not shown its full hand in revealing its intentions, the first reports that SPRs might provide 90 days of net import coverage had stoked industry hopes of an important new pillar of oil demand. Indications now, however, are for much far less than this: shipping brokers say it’s possible the entire initial SPR build-up in the world’s third-biggest oil consumer could be handled by just a handful of Very Large Crude Carrier (VLCC) tankers. Indeed, India’s initial SPR plan pales in comparison to a programme that is ten-fold bigger in China and is a further sign that Asia’s demand outlook may not be as strong as expected. “I don’t see the Indian SPR […]

India mulls merger of 13 state-run firms into oil giant

26 Jul 2016   India

Should India proceed with a merger of 13 state-held oil companies, the Indian giant would be able to compete with the likes of Rosneft and BP on terms of size. Photo by AzmanMD/Shutterstock India’s government is considering launching talks to merge 13 state-held oil companies into one giant conglomerate that could rival some of the industry’s global giants, India’s Economic Times reported Monday. India’s Cabinet Secretariat has tabled the idea to the oil ministry which has started assessing the prospects of a mega-merger, the ET said, citing sources, adding that the oil ministry had declined to comment on the report. The country’s biggest oil producer, Oil and Natural Gas Corp., as well as Indian Oil Corp., Bharat Petroleum Corp., Hindustan Petroleum, GAIL, Mangalore Refinery and Petrochemicals, Chennai Petroleum, Numaligarh Refinery and Oil India are said to be subject of the merger idea, according to ET. The government is also […]

India Taking Advantage Of Crude’s Weakness

14 Jul 2016   India

India Oil If you’re looking for evidence that this is a great time to be a major oil buyer, look no further than India. Indian Prime Minister Narendra Modi maybe a friend to the U.S., especially as the two countries share a common threat in the form of an increasingly belligerent China , but the Indian Prime Minister is still happy to display an independent streak when it suits him. That independence is allowing Modi to cut outstanding deals on behalf of India for natural resources projects with a variety of sources around the world. In May for instance, Modi traveled to Tehran to sign a deal with Iran and Afghanistan to develop a port on the Gulf of Oman. India will provide $500 million in financing for the port. While $500 million is a trivial amount of money for a major project in the U.S., in cash-starved Iran, […]

India First Quarter Oil Demand Grows at Fastest Pace in a Decade

13 Jul 2016   India

India consumed 48.5 million tons of oil products in April-June Diesel demand expanded 4.7 percent, gasoline at 10 percent India’s oil demand in the three months of the financial year that began April 1 grew at the fastest pace for any first quarter period in the past 10 years. Close all those tabs. Open this email. Get Bloomberg’s daily newsletter. Politics The latest political news, analysis, charts, and dispatches from the campaign trail. You will now receive the Politics newsletter Markets Your daily must-read for the most important news in markets. You will now receive the Markets newsletter Pursuits Travel with us, drive with us, eat with us – around the world. You will now receive the Pursuits newsletter Game Plan The school, work and life hacks you need to get ahead. You will now receive the Game Plan newsletter The country consumed 48.5 million tons of oil products […]

NASA Data Shows Toxic Air Threat Choking Indian Subcontinent

9 Jul 2016   Air Quality, India

Geography, climate worsen haze across the Indo-Gangetic plain Cities such as New Delhi being left to battle to clean air The mega-city of New Delhi has tried everything from banning diesel guzzling SUVs to taking about half the city’s cars off the streets in a fight against air pollution. Officials may yet have to do much, much more, based on National Aeronautics and Space Administration satellite research. The research depicts how much sunlight is blocked by airborne particles, providing a proxy for levels of pollution. The data show parts of the Indo-Gangetic plain — stretching across northern India from eastern Pakistan on one side to Bangladesh on the other — suffer some of the planet’s worst haze in October through January after monsoon rains end in September. Close all those tabs. Open this email. Get Bloomberg’s daily newsletter. Politics The latest political news, analysis, charts, and dispatches from the […]

Top Indian Refiner Plans $6 Billion Expansion as Demand Climbs

4 Jul 2016   India

IOC aims to boost refining capacity by 30% over next 6 years Country’s capacity may reach 340 million tons by 2030: Singh Indian Oil Corp. will spend about 400 billion rupees ($6 billion) to boost capacity by almost 30 percent in the next six years to feed the booming fuel demand in the world’s second-most populous nation. “Fuel demand is rising and India’s excess capacity is very small,” Sanjiv Singh, director of refineries at India’s biggest processor, said in an interview Friday. “We all need to expand if demand sustains.” The expansion comes as Indian refiners are racing to add capacity amid rising fuel consumption. India is poised to surpass Japan as the world’s third-largest oil user this year and will be the fastest-growing crude consumer in the world through 2040, Paris-based International Energy Agency estimates. The state-run company aims to increase its capacity to about 104 million metric […]

India’s $13 Billion Pay Rise Seen Lifting Oil Demand on New Cars

1 Jul 2016   India

Country expected to pass Japan as world’s 3rd largest oil user Auto industry to benefit as workers buy personal transporation India’s $13 billion pay increase for federal employees will boost car and motorcycle purchases, increasing fuel use in a country with the world’s fastest oil demand growth. Prime Minister Narendra Modi’s cabinet this week decided to increase salaries for federal government employees resulting in a payout of roughly 849 billion rupees ($13 billion) for 4.7 million workers and 5.2 million pensioners in the year through March 2017. The move is seen as a boon for auto sales, which have been the driving force behind the country’s accelerating oil consumption. “There will be lot more activity,” S. Varadarajan, chairman of India’s second-largest oil marketing company Bharat Petroleum Corp., said in phone interview. “Two wheeler sales will go up, cars will go up. So automatically all these will lead to an […]

Cheap Oil Prompts ONGC’s Biggest Crude Exploration Binge

20 Jun 2016   India

Explorer to begin largest-ever development drilling program Oil and Natural Gas Corp., India’s biggest explorer, is preparing to spend on its biggest ever crude binge as sub-$50 oil halves the cost of rigs and services. State-run ONGC is contracting as many as five deepwater drill ships and dozens of jack-up rigs as it launches a $5-billion development program in the Krishna-Godavari Basin off the east coast of India, Chairman Dinesh Kumar Sarraf said in an interview. The company wants to make use of the drop in hiring rates for vessels and oilfield services to lower costs and boost profit, he said. “This is the largest ever campaign undertaken by us,” Sarraf said. “Never in the past have we had five rigs in offshore deep-water at one time. We believe this is the right moment when we can increase our investment.” The company, which intends to spend 11 trillion rupees […]

Slavery At Sea: The Ugly Underbelly Of Oil Shipping

20 Jun 2016   India

The words “slavery” and “oil”, when used together, are usually reserved for use in the context of palm oil, but the offshore oil and gas industry isn’t immune to modern-day slavery—as evidenced by the detention of a BP-charted offshore oil supply vessel in Scotland, which was found to have a group of unpaid workers on its crew. The Malaviya Seven offshore supply vessel (OSV) was detained in Aberdeen, Scotland, earlier this week, with trade union representatives calling it a “blatant example of modern day slavery”. Owned by Mumbai-based GOL Offshore, the vessel was chartered by BP from 1 June to 15 June. Among its crew were 15 Indian workers who had been unpaid for months. According to the General Secretary of the National Union of Rail, Maritime and Transport Workers (RMT) the incident “exposes the shameful practices in the exploitation of our natural resources”. These “ships of […]

Monsoon to wash away diesel demand surge

17 Jun 2016   India

India’s monsoon is expected to dump above-average rainfall on the South Asian nation after two years of drought, cutting its use of diesel for irrigation pumps and generators over the third quarter and potentially rejuvenating exports of the oil product. India is a net exporter of diesel – which accounts for about 40 percent of its oil demand – but a jump in imports by state refiners since April helped erode an Asian surplus of the fuel, lifting its regional profit margins to the highest for the year so far at the end of May. The state refiners ramped up diesel imports in the second quarter after supplies from private oil processors Reliance Industries and Essar Oil became too expensive in the absence of discounts on taxes and shipping. Now, as the rains […]

India’s Apr-May thermal coal imports via 12 major government ports rise 1.3% on year

9 Jun 2016   Coal, India

India’s 12 major government-owned ports handled around 18.33 million mt of imported thermal coal over April-May, up 1.3% from 18.09 million mt in the same period a year ago, according to Indian Ports Association data released Wednesday. But coking coal imports in the first two months of the current fiscal year 2016-2017 plunged by 8.4% to 8.7 million mt, from 9.5 million mt a year ago, the data showed. Paradip port on the east coast of India handled the highest volume of thermal coal imports during the two-month period at 5.1 million mt, up 4% from 4.9 million mt a year ago. Kolkata port, also on east coast, received the highest coking coal shipments in April-May at around 2.3 million mt, compared to 2.8 million mt in the same period last year, showing a drop of 17.8%. Article Continues below… Platts Coal Trader International is the only daily publication […]

India Putting Floor Beneath Oil Prices As Demand Continues To Soar

8 Jun 2016   India

If oil prices are to continue their strong rally, they will have India to thank. India has emerged as the “star performer” of the oil markets, the IEA wrote in its May Oil Market Report. Oil demand growth in India has surpassed that of China, the long-time cornerstone of global commodity demand. Part of India’s sudden importance has to do with China. Demand growth for refined fuels in China plunged recently, down to 353,000 barrels per day in the first quarter of 2016 from a year earlier. That is down roughly 60 percent from a highpoint in the third quarter of last year at nearly 900,000 barrels per day (elevated levels that had a lot to do with filling of China’s strategic petroleum reserve). But India’s demand for liquid fuels grew by 400,000 barrels per day in the first quarter, which was the fastest in the world, accounting for […]

U.S. and India Agree U.S. Company to Build Six Nuclear Reactors

8 Jun 2016   India, Nuclear

The U.S. and India have agreed to move forward with the construction of six nuclear reactors in India by an American company, the first such contract since the countries signed a landmark civil nuclear deal in 2008. The announcement on Tuesday capped a meeting between U.S. President Barack Obama and Indian Prime Minister Narendra Modi at the White House. It marked a significant step forward in resolving obstacles to the sale of nuclear reactors and fuel to India. Under the new agreement, Nuclear Power Corporation of India and Westinghouse Electric Co., a U.S. unit of Toshiba Corp., will begin work on the engineering and site-design work for the reactors, though the contract won’t be finalized until June 2017, White House officials said. “Culminating a decade of partnership on civil nuclear issues, the leaders welcomed the start of preparatory work on-site in India for six AP 1000 reactors to be […]

Millions of New Vehicles in India Give Oil Prices a Lift

7 Jun 2016   India

India’s rapid economic expansion—especially its growing appetite for cars—has fueled that nation’s oil consumption. The latest rebound in oil prices is getting help from an unexpected source: surging demand from Asia’s emerging economies. That surge is helping offset slower growth in developed countries and giving more potency to the effect of a recent string of outages that have curbed supply. India, especially, is helping to up the slack from struggling economies, whose lackluster growth has contributed to oil prices’ long slide. The durability of India’s demand could be a big factor in whether oil’s recent run to a six-month high over $50 a barrel can be sustained. “The big news in demand is growth in India, which now rivals China,” said Daniel Yergin, vice chairman of consulting firm IHS. “India really is seen as the growth market for oil.” India is fueling a rapid economic expansion, with consumption hitting […]