A couple of hours ago Don sent me a link regarding a story on India which resulted in updating some old posts and posting a new post. For the moment, India seemed to be the theme for the day. Before signing off for awhile, I checked if there were any new tweets. So incredible: Platts tweeted this about two hours ago, "Will India become the new engine for Asian demand growth?" And then a link to their video snapshot titled "five commodity themes to watch closely in 2017." Here they are:
- OPEC production: OPEC's agreement to cut production and then non-OPEC producers also agreed to cut production; tough implementation is just beginning
- US production: US oil production: under Obama, US crude oil production grew "breathtakingly" from less than 5 million bopd to 9.5 million bopd (no comments, please); Trump is pro-US crude oil growth; at $65 WTI, IRR for US operators is estimated to be between 35 and 40%; plenty of capital available; watch for lots of hedging; how will that affect OPEC's plans to cut production
- Asian demand: will India become the new engine for growth in Asia
- for the 3rd year in a row, 2017 is likely to see a larger percentage rate for growth in oil demand in India than in a slowing Chian
- current Indian demand is similar to that of China in the 1990s
- Indian govt likely to increase crude oil demand; Make In India initiative (see link)
- India's initiatives have caught the interest of Saudi Aramco and Rosneft
- see graphic below
- Global gas market: is 2017 the year in which we see the emergence of a global gas market?
- could global prices for natural gas converge? this is a huge story
- see graphic below
- EVs: could 2017 be the year that economic reality hits the electric car market (at 4:13 in the video)
- imminent release of the Chevy Bolt and Tesla Model 3
- fuel more (fake) stories on peak oil demand
- spotlight on the realities
- govt subsidies in EV economics play a key role in EV economics
- incoming Trump administration could change things in the US -- the largest EV market
Global gas market:
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A Fake News Story Before Fake News Stories Were Cool
Bakken boom extends to Minnesota.
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