World Oil Demand To Rise, says IEA

International Energy Agency (IEA’s) first forecast on the crude oil demand for next year suggests that global demand for crude is expected to rise by 1.6%, mainly  because of growth in the developing world, particularly Asia. While demand in industrialised countries is forecast to fall 0.3%, this will be counterbalanced by 3.6% growth in other economies.

Indian Industry News: India’s fuel demand seen up 3.8 per cent in 2012, says IEA

India’s fuel demand may rise 3.8 per cent in 2012 led by diesel and gasoline, the International Energy Agency said, adding a recent retail price hike by Asia’s third-largest oil consumer will not dent demand growth in the short term. IEA, an adviser to 28 industrialised countries, in its July report, forecasts India’s fuel demand to rise 132,000 barrels per day (bpd) to 3.6 million bpd in 2012 despite a likely slowdown in economic growth to 7.8 per cent in that fiscal.

Higher ATF Restraining Growth of Aviation Sector in India

While the rebound in global aviation industry has been strong in 2010, rising aviation turbine fuel (ATF) prices may adversely affect financial prospects of the industry as a chuck of the cost comprises ATF. High interest costs are also estimated to have dented profitability of the domestic airlines for the March 2011 quarter.

Indian Petroleum Industy: An Update

Prices of petrol and diesel in India are likely to rise by Rs 5 per litre. Given the high inflation and rising costs of commodities, profits of companies in India are expected to be adversely affected.

NELP IX receives lukewarm response

The Indian government received a lukewarm response from oil companies particularly the large global companies like Exxon Mobil and Chevron. It is suspected that long delay in granting government approval to the Cairn-Vedanta deal has kept the foreign companies at bay.

Will new tax regime benefit investments in oil & gas sector in India?

Replacing the existing regime of seven-year tax holiday on profits on sale of oil from the oil blocks offered under NELP, energy explorers will get tax incentives based on investments in the ninth round of auctions for oil and gas exploration blocks. The tax benefits will extend to gas exploration as well.

Will this move refrain bidders?

Airfares set to rise

The domestic airline industry was barely out of red, and the surge in crude oil prices is dragging it back again.

Aviation turbine fuel (ATF) is the largest cost for any airline company, accounting for nearly 40% of operating expenses. ATF prices were higher by 30% at the end of February 2011 compared to the year-ago level. It is nearly 10% higher than the average price levels in January 2011.

Infrastructure Gets A Firm Push

Infrastructure development in India faces both financing as well as non-financing constraints. In the Economic Survey for 2010-11, the government has highlighted the need to address the following non-financing constraints that are leading to time and cost over-runs:

RIL-BP Deal: A Mega Opportunity

The deal is expected to give Reliance Industries an access to world class deep water exploration and development capabilities. On the other hand, BP will gain from RIL’s strong project management skills and operations expertise, together with an access to the growing gas market in India. 

It is probably one of the few occasions when RIL has given such a high stake to another company.

RIL’s strategic partnership with BP

Company’s press release.

GAIL fears loss of revenue… Read