Platts: Will India Become The New Engine Of Growth In Asia? Five Commodity Themes For 2017-- December 24, 2016

Funny how things work out.

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

India vs China crude oil demand growth:

Global gas market:

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A Fake News Story Before Fake News Stories Were Cool

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