S&P Global — 24 May 2024
Daily Update: May 24, 2024
India's Fossil Fuel Future
By Mac Mathews
Start every business day with our analyses of the most pressing developments affecting markets today, alongside a curated selection of our latest and most important insights on the global economy
Any discussions of oil demand in the Asia-Pacific region must include India and China. While China's demand for oil is almost three times that of its neighbor to the south, India's steadily increasing demand has made it the center of attention.
India's role in oil markets, expected to continue increasing for decades to come, is due to growth in the country's economy and population. The Indian government in recent years has approved oil and gas exploration in a total area of 1 million square kilometers offshore on the west and east coasts and in the Andaman and Nicobar Islands.
"We are witnessing a very positive momentum in the upstream sector of India, which will further accelerate with [the] government of India's vision of enhancing and expediting exploration in Indian sedimentary basins," Oil India Ltd. Chairman and Managing Director Ranjit Rath told S&P Global Commodity Insights at the India Energy Week event held earlier this year.
Rath added that renewable energy will see the highest growth, but oil will continue to "hold the maximum share in the primary energy mix" as natural gas has been deemed acceptable as a transition fuel. India has a net-zero target of 2070.
The largest oil company in the country, state-owned Indian Oil Corp., plans to create a subsidiary to focus on lower-carbon and clean energy, while the parent firm will continue to focus on core refining operations.
"Oil will continue to remain a key focus for the company," a source at Indian Oil Corp. told S&P Global Commodity Insights. "But there is a need to push new energy growth in a strategic manner. Therefore, the company has decided to set up a new subsidiary."
Indian Oil Corp. plans to establish 1 GW of renewable energy capacity across the country and aims to strengthen electric vehicle infrastructure by setting up charging points and battery-swapping facilities at its fuel stations.
While oil consumption is on an upward trajectory, India's per capita oil consumption is low compared to China and the US. It will continue to rise, though, as the country's economic expansion rests on a resource-intensive growth strategy favoring infrastructure projects and industrial expansion.
From 2023 to 2030, the world's oil markets will add about 2 million barrels per day, with India contributing about half of that demand growth, according to S&P Global Commodity Insights. Beyond 2030, India's oil demand will likely continue to grow for years or even a couple of decades, while demand is expected to fall for many developed countries.
Today is Friday, May 24, 2024, and here is today’s essential intelligence. The Daily Update will not publish Monday, May 27, 2024. The next edition will publish Tuesday, May 28, 2024.
Bright Spots For Hydrogen Project Development Emerge Amid Investment Delays
Clean hydrogen projects are finding a pathway to final investment decisions despite global headwinds, through careful renewable power procurement, matching hydrogen production with anchor offtake agreements and state support, while incumbent producers also have an advantage. Low-carbon and renewable hydrogen project delays are well documented around the world, with policy uncertainty, cost inflation and difficulty securing competitive offtake agreements common barriers.
—Read the article from S&P Global Commodity Insights
Ep. 218 - PMI In Focus: Update On Inflation And A New PMI Survey
In this episode, our expert economists dive into the world of Purchasing Managers' Index (PMI) data and its impact on global markets. We kick off with an intriguing discussion on the reassessment of central bank policies and the implications for financial markets. The PMI economists delve into the key drivers of inflation, such as rising wages and material costs, and analyze the pricing power of firms in various sectors. The conversation then shifts to the newly launched PMI survey for the Kuwait economy. The survey covers various sectors, excluding oil production. The economists also confer about the latest PMI data from other Middle East North Africa economies including Egypt and the UAE.
—Listen and subscribe to the podcast from S&P Global Market Intelligence
North American Insurance Broker M&A Declines In Q1 2024 Amid Wider Downturn
M&A activity involving North American insurance brokers declined nearly 40% in the first quarter of the year compared to the last quarter of 2023, according to an S&P Global Market Intelligence analysis. There were 103 deals with an aggregate value of $13.22 billion targeting insurance brokers during the first quarter, down from 168 deals and an aggregate value of $17.80 billion in the preceding quarter.
—Read the article from S&P Global Market Intelligence
Oil Product Stocks Drop For Fifth Consecutive Week
Stockpiles of oil products at the UAE's Port of Fujairah dropped for a fifth consecutive week, the longest losing streak since 2020, as shipments of fuel oil used for bunkers and for power generation increased ahead of summer and peak demand for air conditioning in the Middle East, according to the Fujairah Oil Industry Zone and ship tracking data.
—Read the article from S&P Global Commodity Insights
IM May 2024 – Drilling In Canada Boosts Global Metrics For April
Drilling in Canada led to an upswing in overall drilling metrics for the month of April. Projects drilled increased by 46 to 224 projects, while the number of drillholes was up 562 to 3,634. Nearly half of the increase in drilled projects and 90% of the additional drillholes are attributable to projects in Canada. All drilling stages were also up month over month in April, with minesite projects jumping 65%, late-stage projects up 25% and early-stage projects up 7%.
—Read the article from S&P Global Market Intelligence
Webinar: Tracking Technology Demand — 2024 Off To A Strong Start Amid Macro Pressures (May 28, 2024)
Insights gathered during Q1 for 451 Research’s US Tech Demand Indicator, a composite view of intent to spend on technology, show 2024 starting on a positive overall attitude among businesses and consumers toward tech spending, and a continuation of a upward trend dating back more than a year. Results also highlight the significant role that business interest in artificial intelligence and data analytics technologies are playing in driving that spend, including toward core IT resources like cloud infrastructure and information security tools. In this webinar, analysts from 451 Research, part of S&P Global Market Intelligence, will discuss the most recent findings from the Tech Demand Indicator, and the potential impact on technology market performance, as well as providing a more detailed view of intents and impacts on specific segments of the technology landscape.
—Register for the webinar from S&P Global Market Intelligence
2024 South Africa Conference: Between A Rock And A Hard Place (June 4, 2024)
This event will discuss potential policy shifts following the May general elections, sovereign-bank nexus in light of the implementation of a resolution regime and S&P Global Ratings’ outlook on South African corporates. Hear from S&P Global Ratings' senior analysts, renowned industry experts, engage in interactive panel discussions and connect with other market participants in person.
—Register for the in-person event from S&P Global Ratings