This Nation Just Became The World's Newest Energy Superpower

Tyler Durden's picture

Authored by Dave Forest via OilPrice.com,

Lots of news this week on energy companies from one particular spot on Earth.

India.

In Lebanon — where reports suggest Indian state oil firm ONGC will bid for offshore blocks. In Canada — where Indian officials are said to be negotiating coking coal supplies. And even in Venezuela, where the cash-strapped government is seeking to sell ONGC a 9 percent stake in the key San Cristobal oil field.

And a new study released this week suggests it’s not coincidence we’re hearing so much about Indian companies on the energy stage.

In fact, India has quietly become one of the world’s biggest energy investors.

That revelation came from the International Energy Agency (IEA) — which released a report yesterday on energy investment trends for 2016. Showing that India’s investment in energy projects surged during the past year.

All told, India’s spending on electricity, oil and gas, coal and renewables jumped by 7 percent in 2016, as compared to the previous year. Reaching nearly $100 billion.

As the chart below shows, that rise was enough to vault India into third place globally for energy investment. Edging out oil giant Russia. India moved into third place globally for energy spending in 2016.

(Click to enlarge)

Of course, India’s energy spending is still a long way off second-place U.S. and top investor China. But the rapid rise of energy investment here shows this is an up-and-coming spot for project funding in oil and gas, and beyond.

IEA attributed India’s ascent to new government policies helping to modernize and expand the economy. Further evidence the country is “getting its act together” in becoming a true natural resource superpower.

That’s an important point of note for project developers globally. Especially given Indian firms seem to have appetite for places further out on the risk spectrum — evidenced by this week’s action in places like Lebanon and Venezuela.

As a final point of interest, the IEA study also showed that — for the first time ever — electricity passed oil and gas as the top energy sector for investment in 2016. Coming as capital spending in the global petroleum space plunged 38 percent between 2014 and 2016.

The group says however, that petro-spending should jump in 2017. Watch for Indian companies to be a big part of those deals and new projects.

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tmosley's picture

Did they finally harness the infinite power of their poo-filled streets?

Truther's picture

Watch. Israel will soon invade Lebanon for the gas fields under the pretext of fighting Hezbollah.  The Zionists will never learn from the 2006 war outcome. 

Truther's picture

It was not a coincidence Modi visited Bibi 2 weeks ago 

peopledontwanttruth's picture

Let's go back to campfires and horses and forget this insanity

TheRealBilboBaggins's picture

Israel has shown zero aggression toward other states.  It's just the Hamas/Hezbollah/Fatah sympathizers that post here think it is Zionist oppression to shoot back when a Muslim terrorist is shooting your or bravely hacking a little old lady in the street with a meat cleaver.  Brave Islamic warriors. Only sneak attacks. Only attack the helpless. Always running away if its an even fight.

 

Truther's picture

"Israel has shown zero aggression toward other states."

Shalom Goyim.

chumbawamba's picture

lol @ RealDildoFaggins.

Are you for real with your 1990s era hasbara?  You need to update your shtick.

I am Chumbawamba.

Stuck on Zero's picture

India solved that years ago by becoming the largest beef exporting country in the world.

BeansMcGreens's picture

They told the cows that they were going on spiritual pilgramage.

nmewn's picture

Maybe they will invest the profits in toilets ;-)

SilverRhino's picture

It's India.  NONE of that money will help the bottom.   

Those caste-based fucks are fucking DICKS to the lowest of them.

 

Iggby's picture

Can concur.

 

We have to use a special agent when visiting Indian clients who is of the "same caste" as upper management in the government power enterprises.

 

The agent is pretty useless besides being equal caste and being able to set up meetings because of that.

Lurk Skywatcher's picture

"It's India.  NONE of that money will help the bottom.   

Those caste-based fucks are fucking DICKS to the lowest of them."

 

And the parties in Hollywood and the Hamptons are all about helping the lower castes.

Our society is so much fairer because the scum might actually get a chance to climb a few rungs.

The top of the ladder is still off limits though.

vato poco's picture

see how you did that? someone said something - doesn't matter what - anything less than 1000% gushingly complimetary about a non-western, non-christian nation, and quick like a bunny, you jumped in there with "wellll, the USA sucks TOO!!"

just like 12-16 years spent in state-run schools indoctrinated you to. Teacher would be so proud!

did they ever cover 'pavlovian responses', or was that discarded so they could focus on longer transgender seminars?

FixItAgainTony's picture

Never mind him, he is just a simple peasant with delusions of a level playing field.

Lurk Skywatcher's picture

Interesting rant. About the only thing you got right was I did go to school, but it wasn't state run.

And funny how you attack a completely rational comparison of the Indian caste system to the western neo-feudal system like its an offence to your god.

Now thats some good 'ol fashioned home down brainwashin', y'all.

Methinks you had to look up "pavlovian", and frankly I'm surprised you didn't start talking about egg whites.

nidaar's picture

Hmm, US to bring some more democracy to the backwards folks in India in 3...2...1

jonjon831983's picture

They're trying to make India a counterweight to China. January 2015 Obama led a big Fortune 500 trade delegation there. Security apparently was expensive if I recall a ZH post about it.

http://www.usibc.com/press-release/usibc-bring-largest-ever-us-business-...

Modi paid a visit to Silicon Valley later in September 2015.

 

More jet fighter deals are being made with factories planned in India to develop domestic technical expertise. Same goes for attempts at developing their artillery/industrial capabilities.

 

IF they get their heads screwed on straight, they have the potential to become a major market. Young population. "tech" industry in certain areas. They have a more high tech start compared to China's slow industrial rise.

land_of_the_few's picture

Try playing with the column sorting, it will tell you something. Perhaps many things! :D

https://en.wikipedia.org/wiki/List_of_countries_by_research_and_developm...

 

Iggby's picture

I sell compressors to Power Companies in India.

 

They are putting Coal Fired plants up all over the country right now and have plans to tear down all plants that are more than 25 years old to rebuild them.

 

Its all government led but its a big business chance for foreign bidders. 

nmewn's picture

Saaay, didn't India sign up for the Paris Accords? ;-)

Iggby's picture

Yes, they did.

 

Which is one of the reasons they are revamping all of the FGD (Flue Gas Desulphurization) systems on their coal plants to try to reduce emissions. 

 

Problem is the new standards arent that much better than the old ones and it just provides an excuse for government spending to be used as GDP padding.

 

Oh, and an opportunity for foreign bidders to ride the investment wave.

nmewn's picture

So, basically the same government malinvestment for quick crony-profit we saw here...but at least they can say they're Gaaarrreeen!-er...lol.

I swear, the whole thing is a scam, everywhere you look.

Mr.BlingBling's picture

At least now WE won't be paying for the Indians' new power plants via the Paris Climate Scam.

garypaul's picture

O.K. but where are they getting the money to pay for all this? Is it just printed fiat?

Winston Churchill's picture

The petrorupee doesn't have quite the same ring to it.

India(and Pakistan) are already full members of the SCO, so is this being funded by the AIIB ?

Stinkytofu's picture

petrorupee?  too awkward.

 

we'll call it the Pupee.

 

i hear the streets are paved with it.

 

TuPhat's picture

Investing in Energy does not make them an evergy 'Superpower'.  Let me know when they reach number one two or three in energy production.  Spending money only makes a nation powerful when they have the worlds reserve currency and that won't last much longer for the US.

cheech_wizard's picture

They harnessed sacred cow flatulence?

 

earleflorida's picture

search:  "Hydropower Dependent on China" ( China and India) scroll

WTFUD's picture

85% still have outhouse shithouses and i therefore suggest that investment in basic plumbing should be a top priority.

Look shitting outdoors is cool in the sticks but not on your neighbour's doorstep in densely populated areas.

milking institute's picture

LOL,i think you missed the line " indian officials now claim to be able to turn the shit of 1.5 billion citizens into energy" there you go,the new energy super power.  INDIA IS EXTREMELY RICH IN SHIT!

milking institute's picture

And from bloomberg: "due to increasesd interest in indian shit exports,the new delhi stock exchange just granted issuance of the ETF with the ticker SMLLY"

Stormtrooper's picture

All with printed from a vacuum funny money.  And the sheeples keep giving up their real assets for this shit.

Andre's picture

Energy "Superpower"?.

They can expect a heavy dose of American "freedom" soon.

earleflorida's picture

think about the $trillions needed in investment-infrastructure to bring india finally into the 21st century.   (think East Germany)

they must realize their 'backwardation?' and outragously 16th-17th century caste-system will eventually 'Bolshevize' itself if nothing is done to improve the lives of the agri-peasants and hundreds of million semi?illiterate proletariet.

land_of_the_few's picture

They would have been shot in East Germany if they had done anything so amateurish. Or committed to an insane asylum.

AE911Truth's picture

An explosive new energy technology in India.

https://youtu.be/r2v0-qIN2Vc

Bunga Bunga's picture

... until their nuke plants go up in flames.

Catullus's picture

No oil, no natural gas, and 200M people without electric power. And the government subsidizes petrol prices so they can afford to drive. "Superpower" indeed.

earleflorida's picture

india in 70 years after split with Pakistan(east pakistan/bangledesh) by british colonialism is similar to the ME, when britain pulled out and left their mess for america, just as they left hong kong a rat-hole sewer for china

ain't imperialism great, now that the british handed the ussa the maintanance-fee to create their own

ya gotta understand today why mao hated the ussa, to fully appreciate india's situation today

land_of_the_few's picture

Hong Kong at 12th position. If you are looking for India it's at 131. China at 90th position.

https://en.wikipedia.org/wiki/List_of_countries_by_Human_Development_Index

earleflorida's picture

india in 70 years after split with Pakistan(east pakistan/bangledesh) by british colonialism is similar to the ME, when britain pulled out and left their mess for america, just as they left hong kong a rat-hole sewer for china

ain't imperialism great, now that the british handed the ussa the maintanance-fee to create their own

ya gotta understand today why mao hated the ussa, to fully appreciate india's situation today

UncleChopChop's picture

um... does the author know that coking coal is not used for 'energy', but for making steel? derp.