COP26 (November, 2021): coal is the transitional fuel.
Folks seem to forget that COP26 agreed that coal would be the transitional fuel.
Japan: returning to nuclear but that will take time.
India: their only choice -- coal.
It makes no sense for India to pivot to oil and / or natural gas.
Oil, globally: 50%, transportation; 50%, other uses.
Analogy:
Brazil transitioned from 19th century transportation to air. Brazil never developed a rail system like the US or Europe. Brazil went directly from 19th century transportation to air.
Likewise, there's no reason for India to pivot / transition to ICE vehicles. Oil will simply be too expensive. Only alternative for India? Electricity for transportation. Multiple fuel sources for generating electricity and coal will be the only economic option for India.
To a great extent, this is just as true for China, maybe even more so.
Corollary: oil bulls should not look at India as a growth "center" for oil. Going forward: oil is for the elite and the rich.
Posted earlier this morning:
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