This Nation Just Became The World's Newest Energy Superpower

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.

Comments

TheRealBilboBaggins Truther Thu, 07/13/2017 - 22:06 Permalink

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. 

In reply to by Truther

Lurk Skywatcher Iggby Thu, 07/13/2017 - 19:43 Permalink

"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.

In reply to by Iggby

vato poco Lurk Skywatcher Thu, 07/13/2017 - 21:51 Permalink

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?

In reply to by Lurk Skywatcher

Lurk Skywatcher vato poco Sat, 07/15/2017 - 04:26 Permalink

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.

In reply to by vato poco

jonjon831983 nidaar Thu, 07/13/2017 - 22:06 Permalink

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… 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.

In reply to by nidaar

Iggby Thu, 07/13/2017 - 19:13 Permalink

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. 

Iggby nmewn Thu, 07/13/2017 - 19:26 Permalink

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.

In reply to by nmewn

TuPhat Thu, 07/13/2017 - 19:16 Permalink

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.

WTFUD Thu, 07/13/2017 - 19:36 Permalink

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.

earleflorida moorewasthebestbond (not verified) Thu, 07/13/2017 - 21:08 Permalink

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.

In reply to by moorewasthebestbond (not verified)

Catullus Thu, 07/13/2017 - 21:33 Permalink

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 Thu, 07/13/2017 - 23:20 Permalink

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 chinaain't imperialism great, now that the british handed the ussa the maintanance-fee to create their ownya gotta understand today why mao hated the ussa, to fully appreciate india's situation today

earleflorida Thu, 07/13/2017 - 23:20 Permalink

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 chinaain't imperialism great, now that the british handed the ussa the maintanance-fee to create their ownya gotta understand today why mao hated the ussa, to fully appreciate india's situation today