India is now approaching a per-capita GDP level that may prove to be a tipping point for economic growth and consumption. At $2,000 per person, Indiarsquo;s GDP is only a third of the way to the point at which oil consumption begins to rapidly increase, according to the energy industry consulting firm PIRA. India is, however, approaching another key level. When Chinarsquo;s per-capita GDP reached $3,000 in 2002, car sales more than tripled to 7 million vehicles by 2008, PIRA points out. Also important to Indiarsquo;s economic growth is its trade with other countries. The UBS chart above shows that Indiarsquo;s trade as a percentage of GDP is similar to where China was in 2002. But to have the same export-led growth seen in China over the past 10 years, India needs to improve in several areas. A good place to start would be to clear away some bureaucratic red tape to encourage private foreign ...

India is now approaching a per-capita GDP level that may prove to be a tipping point for economic growth and consumption. At $2,000 per person, Indiarsquo;s GDP is only a third of the way to the point at which oil consumption begins to rapidly increase, according to the energy industry consulting firm PIRA. India is, however, approaching another key level. When Chinarsquo;s per-capita GDP reached $3,000 in 2002, car sales more than tripled to 7 million vehicles by 2008, PIRA points out. Also important to Indiarsquo;s economic growth is its trade with other countries. The UBS chart above shows that Indiarsquo;s trade as a percentage of GDP is similar to where China was in 2002. But to have the same export-led growth seen in China over the past 10 years, India needs to improve in several areas. A good place to start would be to clear away some bureaucratic red tape to encourage private foreign ...

The Organization of the Petroleum Exporting Countries (OPEC) said yesterday (Thursday) that it would keep production quotas at 24.845 million bpd and urge members to adhere to targets, as global demand has yet to return in full.

However, a report from the International Energy Agency (IEA) indicated that demand is recovering more quickly than previously thought, and that OPEC may be playing catch-up as the global recovery gathers steam.

The IEA increased its outlook for global oil demand by nearly 500,000 barrels per day (bpd) for 2009 and 2010, to 84.4 million and 85.7 million bpd respectively.

Perhaps the biggest reason for the increase was surging demand in China, where the Red Dragon’s $587 billion (4 trillion yuan) stimulus plan has resuscitated manufacturing and helped China grow into the world’s largest auto market.

China’s imports of oil hit a record high in July, soaring 18% from the month prior to 19.63 million metric

...

U.S. banks are going bad as quickly as a bunch of over-ripe peaches in the summer heat. On the heels of the Colonial Bank failure comes another sizable bank failure.

Guaranty Bank in Texas became the 81st U.S. bank to fail this year. It was the 11th largest bank failure in U.S. history. This kind of thing is becoming so regular it is hardly news when it happens.

But what’s interesting to point out about this one is that the FDIC sold Guaranty to Banco Bilbao Vizcaya Argentaria of Spain. This is the first time regulators have sold a failed bank to a foreign lender. Such a turn of events would have been unthinkable only a decade ago.

So the world turns. When it comes to the question of who has the money, it’s often a non-U.S. buyer these days.

Speaking of foreign buyers, there is probably no group of buyers more watched and

...

Axial Vector Energy Corp. announced this morning that its JV Company PETRO-AVEC is currently negotiating licenses that would secure rights for its oil refining technology across the entire country of India. According to the press release, government agencies for India and large multi-billion dollar privately owned refineries are all competing for the issuance of this important license.

In June of this year, PETRO-AVEC officials originally presented its technical due diligence to interested parties in India. They have now been invited back to India by a number of interested parties to finalize license negotiations.

The viability of removing sulphur from oil allows for cleaner air and substantial savings on both capital outlay and per barrel cost of processing. Sulphur continues to be the number one problem facing the oil industry and PETRO AVEC believes it has the best solution to address this

...

Axial Vector Energy Corp. announced today that PETRO-AVEC, its JV Company, has accepted an invitation to the Saudi Arabia “Petrochem Arabia” conference. Held October 4-6, the conference is under the Patronage of HRH Prince Mohammed Bin Fahd Bin Abdulaziz, Governor of the Eastern Province of the Kingdom of Saudi Arabia.

The Federation of GCC Chambers as well as other major local and international organizations fully support Petrochem Arabia 2009. This conference will bring government, Saudi and international private sector companies together to examine the current opportunities and challenges being faced in the Kingdom’s petrochemical industry. According to the press release, it is the only conference focusing on petrochemicals in Saudi Arabia, the world’s largest oil producer with more than nine million barrels produced every day.

PETRO-AVEC officials plan to present the third party technical due diligence from two of the world’s largest oil

...

Sinopec (SNP), China's largest oil producer after PetroChina (PTR), has improved its domestic fuel sales in the second quarter after a sharp decline in the first quarter. While first quarter sales were down 12.4% year-over-year, second quarter sales were down only 4.8%.  This follows an increasing demand, which rose approximately 6% in June over the year-ago period. It is the fastest growth recorded since August last year. We expect further gains in the second half as the economy recovers and its export-oriented industry begins to flourish.  Sinopec increased its refinery production in the quarter to meet rising sales. The augmented production was partly in anticipation of hikes in retail prices of refined products, which ultimately kicked in June with a total increase of approximately 15%.   Crude throughput rose 6.7%, recovering from a 3.3% fall in the first quarter. Gasoline production increased 21% year-over-year, while ...

Do recently rising oil prices signal a resurgence of economic growth?

In the WSJ Blog Environmental Capital, Russell Gold writes of

a growing belief that the economy could be regaining its footing and oil prices will climb to the price that OPEC is willing and able to defend.... "[T]here would be no reason why the current price rally could not extend to $75 within a fairly rapid timeframe," [Paul] Horsnell wrote in his weekly overview of oil-market conditions. Believers in oil-market fundamentals are left scratching their heads. Exxon Mobil Corp. chairman and chief executive Rex Tillerson told reporters earlier this week that he couldn't see any reasons involving supply and demand to push up oil prices. He attributed the recent oil rally to fluctuations in the U.S. dollar and people trying to get in front of a perceived economic recovery.

The first point I'd emphasize about this hypothesis

...

The Organization of Petroleum Exporting Countries (OPEC) will likely maintain its crude oil production quotas at its meeting in Vienna, Austria today, Thursday.

Saudi Arabia’s oil minister, Ali Naimi, has indicated that while demand is beginning to pick up, inventories remain dangerously high. Therefore, it would be best for the cartel to “stay its course” by continuing to adhere to previous production cuts until demand stabilizes.

After soaring above $147 a barrel last summer the price of oil tumbled more than 80% to a four-year low of $32.70 a barrel in February. To combat the sharp decline in prices, OPEC has lowered its production quotas by 4.2 million barrels per day (bpd) - about 5% of global demand - since September.

Since February, oil prices have recovered, climbing to their current level above $60 a barrel. But both Naimi and industry analysts have warned that the rally has more to do with market

...

The U.S. news media has convinced many investors that oil consumption is falling because of the global recession. While that may be true, it’s a disservice to millions of investors because production is declining at a pace that’s actually three times faster. And that suggests higher oil and gasoline prices in coming months - perhaps as much as 50% - 70% higher, or more - particularly if a U.S. economic recovery is truly in the offing. To really see what I’m talking about, let’s start with a close look at consumption. I’m asked about this frequently in my global wanderings, most recently at the Las Vegas Money Show last week. For months we’ve been hearing about a drop in global demand. It’s a popular story and one that sounds credible: After all, it seems logical to assume that during economic chaos, consumers and businesses alike will ...