Goa top fuel guzzler, per capita petrol sales 6 times national average of 19 kg
Goa consumes more petrol and diesel on a per capita basis than any other state in the country, while Bihar uses the least. Per capita sales of petrol in Goa were 119.7 kg in 2017-18, over six times the national average of 19 kg, according to oil ministry data. In a diesel, at 225.6 kg, Goans consumed almost three-and-half times the fuel than the national average of 66.9 kg. By contrast, in Bihar, per capita sales were 6.7 kg for petrol and 22 kg for diesel, about one-third the national average. Economic activity, tourist flow and inter-state variation in taxes largely contribute to the differences in per capita consumption of petrol and diesel among states, according to BS Canth, a former marketing director at Indian Oil Corp. “The population of Goa is small but number of vehicles on the road is always high due to a huge inflow of tourists. This results in higher per capita consumption of petrol and diesel in Goa,” said Canth. Tourism as well as dependence on diesel for power drive up per capita consumption of petrol and diesel in some union territories as well. Puducherry, Andaman & Nicobar Islands, Dadra & Nagar Haveli and Daman & Diu have sharply higher consumption than the national average. A lower economic activity and higher population in Bihar keep it at the bottom of the fuel consumption chart. Some states with lower taxes on fuel benefit from higher fuel sales as vehicle owners from bordering states drive down to filling stations offering cheaper fuel. For instance, a resident of Noida, Uttar Pradesh, is more likely to tank up his car in Delhi as the fuel is relatively cheaper in the national capital. Similarly, a truck driver going to Mumbai from Delhi is more likely to stop at a filling station in Haryana where fuel is cheaper due to lower taxes. This is one key reason Haryana has the second highest per capita consumption of diesel at 203 kg. In overall volume, Maharashtra topped the chart with sales of 3226,000 metric tonnes of petrol and 8673,000 metric tonnes of diesel. Uttar Pradesh was the second-biggest consumer in both petrol and diesel. Ryan Kalil Womens Jersey
Europe still hooked on Russian gas supplies despite a desire to reduce its dependence
The EU hosts Tuesday talks between Moscow and Kiev on Ukraine’s gas transit role, as Europe imports ever more Russian gas despite a desire to reduce its dependence on Moscow. Here is where Europe stands in terms of its energy reliance on Russia: European demand for Russian gas declined between 2010 and 2014 — when a popular uprising in Kiev ousted a Moscow-backed regime and Russia annexed Crimea and moved to support an insurgency in the ex-Soviet country’s east. Since then it has grown on the back of a drop in European production — notably in the Netherlands. The continent’s reliance on imported gas has particularly benefited the Russian gas giant Gazprom, which sits on 17% of the world’s gas reserves. Gazprom is more than 50% controlled by the Russian state and is often seen as a powerful geopolitical weapon at the Kremlin’s disposal. The company currently accounts for more than a third of European gas consumption. Exports to Europe lept in 2016 and 2017, thanks largely to a cold winter. Earlier this year Gazprom announced a new record export volume. Russian gas currently reaches Europe through several pipelines — Nord Stream 1 brings gas to Germany, while two pipelines arrive in Poland through Belarus. Four others go through Ukraine, as well as a separate pipeline to Turkey and direct deliveries to Finland and the Baltic states. But Gazprom is seeking to develop new pipelines, with the financial support of major European groups, to maintain its market share and minimise transit through Ukraine. The company hopes to put into operation two new gas pipelines that will bypass Ukraine by the end of 2019: TurkStream, via Turkey, and Nord Stream 2, via the Baltic Sea. The European Commission has reservations about the projects. Without being able to oppose them, it wants to make sure the new pipelines conform to the rules of the European energy market — particularly in terms of competition. Poland and eastern European countries are most opposed to their former Soviet master’s new ventures. Despite Europe’s desire to diversify its suppliers, alternative sources are struggling to gain ground. The United States, a major producer of natural gas, has recently embarked on a commercial offensive in search of new markets, supported by President Donald Trump. But shipping liquified natural gas is still considerably more expensive that transporting Russian gas via pipelines. British oil major BP in July began exploiting a giant gas field in Azerbaijan, which is to be the first link in the “Southern Gas Corridor” that will bring supplies to Europe via Turkey, Greece, Albania and the Adriatic Sea. It is set to be completed in 2020. But experts say that the project, launched in the early 2000s, is already outdated and will ultimately cover just two% of European demand. Andre Reed Authentic Jersey
India’s oil import bill balloons 57 per cent to $12.73 billion in June
India’s import bill of crude oil and petroleum products swelled 57 per cent to $12.73 billion in June as compared to the same month last year. The ballooning of oil import bill comes on the back of a 60 per cent rise in Brent, the benchmark for half the world’s crude, to $76 per barrel last month. Energy hungry India meets over 82 per cent of its crude requirement through imports. The recent surge in international oil prices has resulted in worsening of Current Account Deficit (CAD) and fiscal deficit for the domestic economy apart from an inflated petroleum subsidy and high inflation. The increase in global crude oil prices led to CAD widening by $16.60 billion to a five-year high in June, wholesale inflation shooting up 5.77 per cent, a four-and-a-half year high, and retail inflation growing to a five-month high of 5 per cent. Total oil import bill in the first quarter of the current fiscal increased 49 per cent to $34.64 billion, as compared to $23.18 billion in the corresponding quarter last fiscal. The country’s CAD is likely to hover between $22 billion to $31 billion in the current financial year ending March 2019. “Brent crude averaging $70 per barrel in FY19 will translate into Indian crude oil basket averaging $68 per barrel. If the rupee averages 66.6/USD in FY19, net addition to CAD would be $22.23 billion. However, if the Indian crude basket averages $72.86 per barrel and Rupee averages 68.00/USD, net addition to CAD would be $31.20 billion,” research agency India Ratings said in a report. According to Petroleum Planning and Analysis Cell (PPAC), the statistical arm of the oil ministry, India’s crude oil import bill, excluding petroleum products, is expected to increase 24 per cent to $109 billion in the current fiscal. “The Indian economy has the resilience to withstand and absorb the oil price shocks for few months, but if oil prices remain high beyond 2-3 months, it will adversely impact all the major macroeconomic variables such as current account, currency, inflation, interest rate, fiscal deficit, GDP growth and conduct of monetary policy,” the report said. Moody’s Investor Services has also pointed out that the surge in international oil prices will result in the country’s petroleum subsidy ballooning to Rs 53,000 crore, putting pressure on the country’s fiscal deficit. The Union Budget 2018-19 had allocated Rs 24,933 crore as petroleum subsidy for the current financial year, a mere 2 per cent increase over the Revised Estimate of Rs 24,460 crore allocated last financial year. The finance ministry Ministry expects the country’s fiscal deficit to land at 3.3 per cent of Gross Domestic Product (GDP) this fiscal. KeiVarae Russell Womens Jersey
Relief for India? US to consider waivers on Iran sanctions, says Mnuchin
he United States in certain cases will consider waivers for countries that need more time to wind down imports of oil from Iran as it seeks to avoid disrupting global oil markets while reimposing sanctions against Tehran, US Treasury Secretary Steven Mnuchin said. “We want people to reduce oil purchases to zero, but in certain cases, if people can’t do that overnight, we’ll consider exceptions,” Mnuchin told reporters on Friday, clarifying some US officials’ comments that there would be no exemptions. Mnuchin’s comments were embargoed for release on Monday as other US officials were expected to begin talks in India this week on cutbacks in Iranian oil supplies. Mnuchin spoke to reporters while en route from Mexico, where he was part of a high-level US delegation led by Secretary of State Mike Pompeo to meet Mexico’s next president, Andres Manuel Lopez Obrador. The Trump administration is pushing countries to cut all imports of Iranian oil from November, when the United States reimposes sanctions against Tehran. Trump withdrew from the multi-national 2015 Iran nuclear deal against the advice of allies in Europe and elsewhere. A delegation from the US State Department and US Treasury are expected for talks in Delhi this week to discuss Iran sanctions, according to Indian officials. US crude oil exports to India hit a record in June as Indian refiners moved to replace supplies from Iran and Venezuela. Andrew Lipow, president of Lipow Oil Associates in Houston, said India was expected to ask the United States to ensure adequate global oil supplies as Washington presses countries to cut back on Iran oil. “That might include pressure to release oil from the Strategic Petroleum Reserve, which the administration indicated they were considering on Friday,” said Lipow. “To put things in context, if we were to look at Iran in total, it’s exporting roughly 2.2 million barrels a day of sales, of which half is going to both China and India,” he said. “It’s very important for the US to get India on board with the sanctions policy.” Mnuchin said he would meet with counterparts from developed and developing countries during a G20 finance ministers’ meeting in Buenos Aires this week. US sanctions against Iran are likely to be raised in his talks on the sidelines of the event. “We’ve said very specifically, there’s no blanket waivers, there’s no grandfathering,” Mnuchin said. “We want to be very careful in the wind down around the energy markets to make sure that people have the time.” “The State Department has the ability to issue waivers around significant reductions in the oil markets. That’s something that Treasury and State will be doing,” he said. French request rejected Mnuchin said Washington had made clear to allies that it expects them to enforce the sanctions against Iran, “but if there are specific situations we’re open to listening.” French Finance Minister Bruno Le Maire said over the weekend that Washington had rejected a French request for waivers for its companies operating in Iran, according to Le Figaro. Paris had singled out key areas where it expected either exemptions or extended wind-down periods for French companies, including energy, banking, pharmaceuticals and automotive. The Trump administration has said more than 50 foreign companies have withdrawn their business from Iran since Trump announced the US was withdrawing from the 2015 nuclear deal between Iran and the United States, Germany, France, Britain, China and Russia. Pompeo, also speaking to reporters on Friday, said he had discussed US plans to reimpose sanctions on Iran with “all but one” country. He did not name the country he had not yet consulted. “What they’ve asked us to do is review how we get there and the timeline for that,” he said. “I’m very confident they understand.” Iranian Foreign Minister Mohammad Javad Zarif tweeted on Monday that Iran had filed a complaint with the International Court of Justice in the Hague against unilateral US sanctions. “Today Iran filed a complaint @CIJ_ICJ to hold US accountable for its unlawful re-imposition of unilateral sanctions,” Zarif tweeted. “Iran is committed to the rule of law in the face of US contempt for diplomacy & legal obligations. It’s imperative to counter its habit of violating int’l law.” The court could not be reached for comment. Iranian President Hassan Rouhani, in remarks carried live on state television on Saturday, said Washington was more isolated than ever over sanctions against Iran, even among its allies. His comments appeared to be trying to ease local concerns fuelled by Trump’s decision to withdraw from the nuclear deal with Iran. The likely return of US economic sanctions has triggered a rapid fall of Iran’s currency and protests by bazaar traders usually loyal to the Islamist rulers. Trump has said he asked Saudi Arabia to raise oil production if needed to ensure global oil supplies and the country has 2 million barrels per day of spare capacity. The Organization of the Petroleum Exporting Countries (OPEC) agreed with Russia and other oil-producing allies on June 23 to raise output from July, with Saudi Arabia pledging a “measurable” supply boost, but giving no specific numbers. Jason Spezza Womens Jersey
Fitch Says Large Capex May Push Indian Oil’s Debt Higher
Fitch Ratings today said it expects state-owned Indian Oil Corp.’s net debt levels to increase due to its large capital expenditure and investment plans. “Fitch expects the Indian Oil Corporation’s capex to remain high to upgrade refineries to meet new emission standards (BS-VI) and to expand refining and petrochemical capacity, including the expansions which are currently underway,” it said in a media statement. The ‘BBB-’ rating with a stable outlook “equalizes the India-based company’s rating with that of its largest shareholder, the State of India (BBB-/Stable)”, the statement said. The rating agency forecast an average capex of Rs 250-300 billion per annum over the next five to six years. It said IOC’s financial profile is likely to remain moderate over the medium term. IOC has reduced its net leverage to 2 in financial year 2017-18 from 2.7 in the financial year ended March 2016 due to higher gross refining margins. We expect IOC’s net debt levels to increase due to its large capex plans in the medium term. However, we believe IOC’s credit metrics will remain comfortable with net leverage of around 2.5 times over the next two to three years, provided its dividend outflow normalises from the high levels of the last two years . Fitch Ratings The statement said it had assessed IOC’s standalone profile at ‘BB+’ to reflect its dominant market position as the largest oil refining and marketing company in India, improving the complexity of its refining assets and a moderate financial profile. “High capex requirements are likely to keep free cash flows negative over the next few years,” Fitch said. It said IOC is exposed to the international crude-refining cycle as reflected in the volatility of its historical GRMs. However, the ongoing refinery upgrades are likely to lower the volatility impact over the medium term. “We also expect IOC to benefit from strong demand for petroleum products in India over the medium term in light of its dominant market position,” it said. Christian Kirk Jersey
LNG spot prices in decline
According to Reuters, Asian LNG spot prices are continuing to correct drop with potentially steeper dips expected ahead. One of the identified causes is low demand from China and India, contrasted with healthy supply. Recent tender deals appear to confirm the bearish condition of the market. Spot prices for August LNG-AS delivery in Asia were assessed at US$10 per million Btu. This is 10 cents from the previous assessment and LNG prices may be a shade lower heading into September. Chinese buyers may be waiting for prices to fall further before wading into the spot market, however, total LNG imports into China remain brisk. Lower prices may also tempt Indian buyers back into the market but for now demand remains limited with only Gail recently wrapping up a tender purchase for a single late July cargo. Archie Manning Jersey
GAIL to spend Rs 7.55 billion to create gas grid in Varanasi
GAIL, the government-owned pipeline company, said it will spend Rs 7.55 billion to put in place a gas pipeline grid in Varanasi, Narendra Modi’s Lok Sabha constituency. The grid, which has been inaugurated, will cover an area of 1,535 sq km, it added. About 0.1 million households are likely to be covered in the project. Work on the project had started in late 2016. Piped Natural Gas (PNG) connection work for 8,000 houses has been completed which are expected to be connected by March 2019. About 800 km of steel and MDPE pipelines will be laid in the city as part of the project. Steel pipeline has already been laid for 28 km and medium density polyethylene (MDPE) pipe laying for 102 km completed. The CGD network will also cover four industrial areas and can cater to 150 industries and 500 commercial enterprises. “It is expected to give direct employment to 1,000 people and indirect employment to many more,” GAIL said. As part of the network, 20 CNG stations are also being put up, out of which two are already working. Overall, 20,000 vehicles are expected to use CNG in the city, GAIL said. The Varanasi CGD project was developed simultaneously with the Jagdishpur — Haldia & Bokaro — Dharnra/ Barauni- Guwahati Pipeline Project (JHBDPL/BGPL). The pipeline project of total length 3,291 km is being executed at the cost of about Rs. 130 billion. It is expected to bring gas-based energy to the North and East of the country. At present, gas-based energy is being used largely in Gujarat, and to some extent in Maharashtra. It will cater to the energy requirements of Uttar Pradesh, Bihar, Jharkhand, West Bengal, Odisha and Assam covering 70 districts and 3,150 villages. Besides Varanasi, CGD networks are also being developed by GAIL at Patna, Jamshedpur, Ranchi, Bhubaneswar and Cuttack enroute the pipeline. Lorenzo Mauldin Jersey
U.S. shale oil output expected to hit record high in August: EIA
U.S. oil output from seven major shale formations is expected to rise by 143,000 barrels a day to a record 7.47 million barrels per day in August, the U.S. Energy Information Administration said in a monthly report on Monday. Production is expected to rise in all seven formations, with the largest gain of 73,000 barrels per day seen in the Permian Basin of Texas and New Mexico. All shale regions except for Appalachia are at a high, according to the data. Meanwhile, U.S. natural gas production in the biggest shale basins was projected to increase to a record 70.5 billion cubic feet per day (bcfd) in August. That would be up almost 1.1 bcfd over the July forecast and would be the seventh monthly increase in a row. A year ago in August output in the biggest shale basins was 57.8 bcfd. The EIA projected gas output would increase in all the big shale basins in August. Output in the Appalachia region, the biggest shale gas play, was set to rise over 0.3 bcfd to a record high 28.9 bcfd in August. Production in Appalachia was 24.1 bcfd in the same month a year ago. Output was also expected to hit record highs in the Anadarko, Bakken, Niobrara and Permian basins in August. EIA said producers drilled 1,436 wells and completed 1,243 in the biggest shale basins in June, leaving total drilled but uncompleted (DUC) wells up 193 at a record high 7,943, according to data going back to December 2013. The Permian basin accounted for the bulk of this increase, with 164 new drilled but uncompleted wells reported. The number of drilled but uncompleted wells has been rising for 19 weeks in a row. A year ago in June, there were 5,964 DUCs. Drilled but uncompleted wells can generally be brought online quickly if infrastructure support becomes available or if price increases. Justin Simmons Jersey
Germany says pipeline, criticised by Trump, is a commercial project
Germany said on Monday that the Nord Stream 2 Baltic Sea pipeline to import more Russian gas was a commercial project, resisting U.S. President Donald Trump’s characterization of the venture as “inappropriate”. “Nord Stream 2 is first and foremost a commercial project,” government spokesman Steffen Seibert told a regular government news conference in Berlin, adding that Germany wanted Ukraine to remain a transit route for gas imports from Russia. Last week, Trump accused Germany of being a “captive” of Russia due to its energy reliance. Chandler Catanzaro Jersey
Norway oil, gas union widens six-day drilling rig strike
A Norwegian union for workers on offshore oil and gas drilling rigs stepped up a six-day strike on Monday that has slightly hit oil output after employers did not respond to demands for higher wages and pension benefits. The union is adding 900 workers to the strike, under a plan announced last week, after failing to win concessions before a midnight (2200 GMT) deadline since almost 700 workers on the rigs went on strike on Tuesday. The expanded strike will not have any immediate extra impact on oil or gas production beyond the closure last week of Shell’s Knarr field, which produces 23,900 barrels of oil equivalent per day. Both the Safe union and employers in the Norwegian Shipowners’ Association said late on Sunday they had no contacts or new offers during the weekend. The websites of both sides, which they said would notify workers of any breakthroughs, had no updates as the deadline passed. “The escalation takes place from midnight as planned,” Safe union spokesman Roy Aleksandersen said just before deadline. The workers on the offshore oil and gas rigs went on strike after rejecting a proposed wage and pension deal. The employees joining the action work on exploration and production drilling rigs owned by Saipem, Transocean , Songa Offshore, Odfjell Drilling, Archer and COSL, among others. New Devils Womens Jersey