Sunday, October 2, 2016

Fuel for the next Oil boom

When China began consuming a lot of gasoline as their automobile ownership took off, China was producing 4.5MM barrels of oil/day. India only produces about 1.5MMbbl/day. If Indian demand follows the path of other rapidly industrializing Asian nations, their imports will be larger than China.

In a few years, assuming India continues to grow, all the cancelled projects will cause a shortage. It is one reason I find it hard to be bearish of oil prices.

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