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Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil

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Indian Oil Corp, the country’s top refiner, has signed its first annual deal to buy U.S. oil, paying about $1.5 billion for 60,000 barrels a day in the year to March 2020 to diversify its crude sources, its chairman said on Monday.IOC is the first Indian state refiner to buy U.S. oil under an annual contract, in a deal that will also help boost trade between New Delhi and Washington. The company has previously purchased U.S. oil from spot markets and signed a mini-term deal in August to buy 6 million barrels of U.S. oil between November and January. IOC chairman Sanjiv Singh said the annual contract will begin from April. He declined to give the name of the seller or pricing details, citing confidentiality.

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Prices at the pump hopefully will go down :)

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As I know, this is the first time any Indian refiner has signed an annual contract since india started import of crude oil in 2017...

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Statoil has had a presence in india for a while / not surprising...

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Yes, India's hunger for oil consumption will only rise in the next decade. A population of 1.3 billion people will need to use much more energy if it wants to be considered the next "superpower". 

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7 hours ago, rainman said:

Indian Oil Corp, the country’s top refiner, has signed its first annual deal to buy U.S. oil, paying about $1.5 billion for 60,000 barrels a day in the year to March 2020 to diversify its crude sources, its chairman said on Monday.IOC is the first Indian state refiner to buy U.S. oil under an annual contract, in a deal that will also help boost trade between New Delhi and Washington. The company has previously purchased U.S. oil from spot markets and signed a mini-term deal in August to buy 6 million barrels of U.S. oil between November and January. IOC chairman Sanjiv Singh said the annual contract will begin from April. He declined to give the name of the seller or pricing details, citing confidentiality.

I hope that India can trade a lot more with the USA. I would rather see India, which is free, trade with us than China which is a complete totalitarian dictatorship. China has benefitted greatly from trade with the USA and our consumers have also, but they are now taking complete advantage of our relationship and are our chief worldwide rival. 

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(edited)

5 hours ago, Bobby P said:

Yes, India's hunger for oil consumption will only rise in the next decade. A population of 1.3 billion people will need to use much more energy if it wants to be considered the next "superpower". 

Yes, and also natural gas. They use a lot of it for transportation and need to because of affordability and to clean the air. 

https://finance.yahoo.com/news/india-looks-double-natural-gas-200000935.html

https://www.greencarreports.com/news/1093785_where-are-natural-gas-vehicles-most-popular-and-most-numerous

Edited by ronwagn
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This is a great first step of the big leap . India should explore beyond OPEC for its growing demand for Oil. A country with huge population and importing more than 82% crude to meet its growing energy demand provides an excellent opportunity for US shale boom. Indian economy is the fastest growing major economy in the world and the country is in a transformational developing stage due to massive ongoing infrastructural development. In the days to come, hopefully US Oil will find long term supply destination in the ever growing appetite in India's energy needs. 

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16 hours ago, ronwagn said:

Yes, and also natural gas. They use a lot of it for transportation and need to because of affordability and to clean the air. 

https://finance.yahoo.com/news/india-looks-double-natural-gas-200000935.html

https://www.greencarreports.com/news/1093785_where-are-natural-gas-vehicles-most-popular-and-most-numerous

Yes, my parents visited India recently and they were astonished by the number of vehicles and two-wheeler's on the roads. The number of LNG and petrol powered vehicles has grown exponentially in the past 5 years. It's too bad that India does not have strict emissions guidelines for vehicles. Also, I would like to mention that only 1/3 of India's population has the required wealth to enjoy cars, motorcycles, etc. So you can imagine the growth potential once the rest of the population moves out of poverty and wants to succeed and own cars, motorbikes as well. Since, owning a car in India is seen as a "status" symbol. 

Edited by Bobby P
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5 hours ago, Jill Schottenstein said:

The deal: muscle not oil...Russia- India

“Deal part of larger umbrella agreement between the two nations to add 4 Grigorovich class frigates to the Indian nation”

 

https://missilethreat.csis.org/india-signs-deal-with-russia-for-construction-of-two-guided-missile-frigates/

Actually i like this deal...

India is in a growing competition with China militarily...

India needs all the weapons they can get...

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18 hours ago, Sukumar Ray said:

This is a great first step of the big leap . India should explore beyond OPEC for its growing demand for Oil. A country with huge population and importing more than 82% crude to meet its growing energy demand provides an excellent opportunity for US shale boom. Indian economy is the fastest growing major economy in the world and the country is in a transformational developing stage due to massive ongoing infrastructural development. In the days to come, hopefully US Oil will find long term supply destination in the ever growing appetite in India's energy needs. 

This is also a good deal for the USA,  as was discussed in another thread,   now that we are producing so much WTI, and LNG,  we have to start opening up export markets for them...

 

This is a good deal...   India gave it a try with a short term purchase,  liked what they received,  and have now signed a longer term deal / purchase.......

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India is an extremely complex country. Free is not the word that comes to mind. My driver in Saudi Arabia was Indian, Hindi, college educated, owned an medical lab, and could make more walking dogs and cleaning houses in Saudi. I want to say 25% of the budget to his medical business went to what we in the west would call brides. He had to pay substantial bribes for his wife to get a government teaching job as well. Just the cost of doing business there. To make serious inroads in India may well create unethical business practices. My houseboy was also from India, just a few villages over from the driver, and he was Muslim. My wife visited multiple times, meeting wonderful people, getting great bargains, and yes, occasionally getting taken to the cleaners by merchants. Fascinating beautiful country, like most places full of wonderful people, but to rate it over China for business practices is, IMHO, naive. Not better, or worse, just different. Where I work now our obsolescence engineering team is based out of India. Such a wide range of capabilities in India, and a huge, rowing market. A bastion of king coal, and barite for you drilling types. Like too much of the world, including the US, the politicians their seek to divide and conquer with race/creed/color issues.  I just wish they'd embrace proper sewage. Over a billion, and half of them don't have proper access to a toilet.

Edited by John Foote
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3 hours ago, John Foote said:

India is an extremely complex country. Free is not the word that comes to mind. My driver in Saudi Arabia was Indian, Hindi, college educated, owned an medical lab, and could make more walking dogs and cleaning houses in Saudi. I want to say 25% of the budget to his medical business went to what we in the west would call brides. He had to pay substantial bribes for his wife to get a government teaching job as well. Just the cost of doing business there. To make serious inroads in India may well create unethical business practices. My houseboy was also from India, just a few villages over from the driver, and he was Muslim. My wife visited multiple times, meeting wonderful people, getting great bargains, and yes, occasionally getting taken to the cleaners by merchants. Fascinating beautiful country, like most places full of wonderful people, but to rate it over China for business practices is, IMHO, naive. Not better, or worse, just different. Where I work now our obsolescence engineering team is based out of India. Such a wide range of capabilities in India, and a huge, rowing market. A bastion of king coal, and barite for you drilling types. Like too much of the world, including the US, the politicians their seek to divide and conquer with race/creed/color issues.  I just wish they'd embrace proper sewage. Over a billion, and half of them don't have proper access to a toilet.

History repeats itself. Once a very prosperous country India -during Maurya and Gupta Dynasty contributed to more than 50% of World's GDP and later subjected to numerous invasions and plunders from Arabs, Central Asia and Europe. Muslims ruled India for more than 1000  years and later Britishers ruled for over 200 years and siphoned almost everything from India to their countries .  India during British rule suffered the most during WW2 as millions of Indians fighting as British Army got killed and WW2 devastated the British Indian Economy and Britishers left India dividing the country in three parts -East Pakistan, West Pakistan and India based on religious lines. Later during 1971 India midwifed Bangladesh from the tyranny of Pakistan. Devastated, emaciated -newly born but brutally mauled India got its Independence from British Raj in 1947 . New Nation building from the devastation , ravages of  exploitation takes decades if not centuries. India started from zero and today sending mission to Mars , catapulted itself  as one of the fastest growing major economy in the World. Today it is the Worlds largest, most vibrant and powerful democracy. With in a very short period of time India built its capability to lift millions from the poverty As per estimates and projections by IMF and World Bank going straight - by 2040 India will be the most powerful economy in the World. Yes, in the present globalized and interconnected world, semi skilled and unskilled Indian expats mostly Indian Muslims and Christians have migrated to Arabs and  skilled Indian expats (engineers, doctors and scientists) have been brain drained by  USA, Canada and Europe enriching their country and culture.

Edited by Sukumar Ray

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On 2/19/2019 at 11:08 PM, Sukumar Ray said:

skilled Indian expats (engineers, doctors and scientists) have been brain drained by  USA, Canada and Europe enriching their country and culture.

Absolutely the world benefits, but brain drain from those I've met, largely self-induced. Ashok Sinha, whom I once indirectly worked for, a great theoretical physicist and a giant in the semiconductor tool industry for his contributions to chemical vapor deposition. But to thrive, he had to leave. A good friend, Anil, his family ended up in Africa, curtesy of the British, and when nationalization hit, in this case Kenya, the family's wealth was taken. But going back to India was not a path to success. He ended up in LA, leveraging his physics degree acquired in England, and built a wonderful business centered on magnetic assemblies. He has some ties back to India, but opportunity demanded not going back. How could the Brits survive without curry.

We live in brief spots of time. India has resources. Whether they are largest economy by 2040, I doubt it, I'd say far more likely China. Dynasties that get overthrown usually have become a bit rotten at the core. Or they would have remained in power. Myanmar, which I've visited, was for ages very powerful, and has been one of the poorest countries around for quite a while. 

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