Now World 3rd Largest Importer

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About 70% of the World’s Crude Oil demand growth between Ys 2010 and 2040 is projected to come from emerging economies, of which the 2 largest are China and India. Demand growth from these 2 countries alone is greater than combined demand growth from the rest of the World.

India passed to become the world’s 3rd largest Crude Oil importer behind the United States and China. And India’s Crude Oil use rose by 300,000 bbls in April, putting the country in position to surpass China’s estimated demand growth in Y 2015 of 295,000 BPD.

More of India’s Crude Oil is coming from the Middle East.

Iran shipped 160,000 BPD to India in the 1st 4 months of this year, and Iraq shipped an average of 555,000 BPD in the same period. Saudi Arabian exports to India totaled about 795,000 BPD in the January through April period.

These 3 countries account for more than a 33% of India’s projected 2015 Crude Oil consumption total of 4.1-M BPD. Japan’s total for the year is now estimated at 3.8-M BPD

India and Japan have routinely traded the 3rd and 4th spot in the global Crude Oil import rankings over the past few years, according to the date. India is destined to take the lead for good, not just because its population is so much larger than Japan’s, but also because Japanese demand for Crude Oil will slow once the country gets its nuclear power generation fleet operating again.

India also is expanding its refining capacity to meet demand for more motor fuels as the country’s growth climbs at an annual rate of 7% and new car sales rise even faster.

The world’s largest Crude Oil refinery at Jamnagar is getting a capacity increase that will raise its total capacity to more than 1.5-M BPD, still less than 25% of the expected demand for 6.2-M BPd of fuel daily by the end of the decade.

By Reza Hashami, CEO, Global Modern Insurance, Inc

, Editor

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