Is Oil Riding off into The Sunset in India? Not if you look at all the products made from a Barrel of Oil.

Why invest in oil when it's riding into the sunset?

Railway minister Piyush Goyal said last week that the railways would be completely electrified by 2022, phasing out diesel locomotives. Earlier, transport minister Nitin Gadkari decreed that all car production would have to be electric after 2030, heralding the end of petrol and diesel cars.

 Me, "India's Petroleum minister Dharmendra Pradhan is half right when he says OIl production can be used in petrochemicals. 47% of a barrel of Oil is used to make Gasoline. With Gasoline being phased out in India in the coming years to power cars and trucks, there is still 45.6% of a barrel of oil that can be turned into other useful products. These products are Heating Oil, Jet Fuel, Propane, Natural Gas Liquids, Petrochemcial feed stock, Asphalt and road oil, Lubricants, MIscellaneous Products, Aviation Gasoline, Special Naphthas, Waxes, Kerosene."

From article, (Petroleum minister Dharmendra Pradhan wants to double India’s oil refinery capacity, and later take it to 600 million tonnes from today’s 230 million tonnes.
The ministry argues that even if the world demand for oil products slumps, the resultant surplus can be converted to petrochemicals. Yes, but only part of the refined liquids are ideal for conversion into chemicals, and the rest can be converted only at a relatively high cost. Besides, if world demand for oil falls, every refinery in the world will try to convert its surpluses into petrochemicals, creating a huge petrochemical glut that makes everybody unprofitable. It will force massive refinery closures.
The ministry must abandon the illusion that petrochemicals offer a simple way out if the oil market collapses.

Me, "Or does he?"


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