• 5 hours Permian Still Holds 60-70 Billion Barrels Of Recoverable Oil
  • 10 hours Petrobras Creditors Agree To $6.22 Billion Debt Swap
  • 14 hours Cracks Emerge In OPEC-Russia Oil Output Cut Pact
  • 18 hours Iran Calls On OPEC To Sway Libya, Nigeria To Join Cut
  • 19 hours Chevron To Invest $4B In Permian Production
  • 21 hours U.S.-Backed Forces Retake Syrian Conoco Gas Plant From ISIS
  • 23 hours Iraq Says Shell May Not Quit Majnoon Oilfield
  • 3 days Nigerian Oil Output Below 1.8 Million BPD Quota
  • 4 days Colorado Landfills Contain Radioactive Substances From Oil Sector
  • 4 days Phillips 66 Partners To Buy Phillips 66 Assets In $2.4B Deal
  • 4 days Japan Court Slams Tepco With Fukushima Damages Bill
  • 4 days Oil Spills From Pipeline After Syria Army Retakes Oil Field From ISIS
  • 4 days Total Joins Chevron In Gulf Of Mexico Development
  • 4 days Goldman Chief Urges Riyadh To Get Vision 2030 Going
  • 4 days OPEC Talks End Without Recommendation On Output Cut Extension
  • 4 days Jamaican Refinery Expansion Stalls Due To Venezuela’s Financial Woes
  • 4 days India In Talks to Acquire 20 Percent Of UAE Oilfield
  • 5 days The Real Cause Of Peak Gasoline Demand
  • 5 days Hundreds Of Vertical Oil Wells Damaged By Horizontal Fracking
  • 5 days Oil Exempt In Fresh Sanctions On North Korea
  • 5 days Sudan, South Sudan Sign Deal To Boost Oil Output
  • 5 days Peruvian Villagers Shut Down 50 Oil Wells In Protest
  • 5 days Bay Area Sues Big Oil For Billions
  • 5 days Lukoil Looks To Sell Italian Refinery As Crimea Sanctions Intensify
  • 5 days Kurdistan’s Biggest Source Of Oil Funds
  • 6 days Oil Prices On Track For Largest Q3 Gain Since 2004
  • 6 days Reliance Plans To Boost Capacity Of World’s Biggest Oil Refinery
  • 6 days Saudi Aramco May Unveil Financials In Early 2018
  • 6 days Has The EIA Been Overestimating Oil Production?
  • 6 days Taiwan Cuts Off Fossil Fuels To North Korea
  • 6 days Clash In Oil-Rich South Sudan Region Kills At Least 25
  • 6 days Lebanon Passes Oil Taxation Law Ahead Of First Licensing Auction
  • 7 days India’s Oil Majors To Lift Borrowing To Cover Dividends, Capex
  • 7 days Gulf Keystone Plans Further Oil Output Increase In Kurdistan
  • 7 days Venezuela’s Crisis Deepens As Hurricane Approaches
  • 7 days Tension Rises In Oil-Rich Kurdistan
  • 7 days Petrobras To Issue $2B New Bonds, Exchange Shorter-Term Debt
  • 7 days Kuwait Faces New Oil Leak Near Ras al-Zour
  • 8 days Sonatrach Aims To Reform Algiers Energy Laws
  • 8 days Vitol Ups Cash-for-Oil Deals With Kazakhstan To $5B
Alt Text

The (Only) Culprit Of Coal’s Demise

Cheap and abundant natural gas…

Alt Text

China Creates World’s Biggest Power Group With $271B In Assets

Chinese authorities approved the merger…

This Struggling Commodity Is Still Booming In One Part Of The World

This Struggling Commodity Is Still Booming In One Part Of The World

As I discussed last week, the commentary around the global coal business has been doom and gloom lately.

But few investors recognize that the market is booming in one part of the world: India.

Local statistics released this week show that the Indian coal story is still very much going strong. With the current year yielding double-digit growth in demand.

Reuters interviewed India's Coal Secretary Anil Swarup on Tuesday. With the Secretary noting that India's coal imports are likely to come in at 200 million tons for the fiscal year ended March 31. Related: Oil Markets Blow Yemen Crisis Out Of Proportion

That would be another record year of imports for India. And would also represent a 19% jump over the previous fiscal year.

More than that, it would continue a five-year pattern that has seen India's coal imports shoot through the roof. As the chart below demonstrates, since the 2010-11 fiscal year, imports are up an astounding 190%.

IndiaCoalImports

Source: Press Information Bureau of India, Reuters, Pierce Points Related: Forget Rig Counts And OPEC, Media Bias Is Driving Oil Down

If this year's import numbers do indeed come in as expected, it confirms that the Indian coal market is one of the strongest spots going for any commodity on the planet. There simply aren't many places these days seeing double-digit yearly demand growth -- let alone consistently over a five-year period.

This could spell an important opportunity for the right coal projects. Specifically, those positioned to sell into the high-demand Indian market. Related: The Most Challenging Oil And Gas Projects In The World

Of course, one x-factor in all of this is India's domestic coal production. Which lately has seen zero growth, due to issues with legal and regulatory approvals, and problems with transport infrastructure.

The government says this will change during the coming year -- with officials expecting state-owned Coal India to up production by 10%, or about 50 million tons. Such an outcome however, remains far from certain. Watch for development of new mining projects -- and production figures from the state.

Here's to a bright spot,

Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News