The New Year began with three Headlines grabbing my attention. And all of them were good news depending on which side one was looking at. In my favoured news paper DNA Money section were these lines –
The USA postpones Armageddon; The US Senate, controlled by Democrats, finally agreed on a deal to neutralise a double whammy of tax hikes across the board and spending cuts, which kicked in as the New Year rang in, hours past a self-imposed deadline for action. Negotiations to avoid going off the cliff have been on for months, the tension building as D-day drew closer. The final details came together hours after President Barack Obama said Congress was making progress on a short-term deal to avert the fiscal cliff..
Boost for oil cos as diesel off-take growth dips; Oil marketing companies, burdened with under-recoveries on the fuel sold by them, have got a much-needed breather as growth in diesel consumption moderated for the third month on the trot in November. Consumption for the month came in at 5.8 million metric tonne (mmt) as against 5.7 mmt in November 2011, a growth of a mere 1.7%, according to data from the Petroleum Planning and Analysis Cell, a statistical body under the petroleum ministry.That’s the slowest pace of growth this fiscal and brings down the cumulative growth rate in consumption to below 10%. Diesel accounts for the bulk of the sales of oil companies. The fuel finds widespread usage, ranging from transportation, mobile towers and power generators. Hence, any change in its consumption pattern has a direct bearing on the financials of these companies…
“This is good for the country as this will not only help in bringing down the under-recovery of companies, but also reduce the subsidy bill of the government and also have a positive impact on inflation,” said a senior oil & gas expert from an international consultancy firm, requesting anonymity.…
Car sales fall despite sops; December stayed slow for the auto manufacturers as most of the companies reported decline in sales despite heavy discounts on offer. Sales are traditionally lean in December as customers prefer to postpone purchases to the new year. After a subdued 2012, the industry is hoping for some corrective measures by the government for boosting sales in 2013.Hyundai Motor India, the second-largest car manufacturer, reported a 9.6% year-on-year decline in sales in the domestic market as it sold 26,697 units in December. Sales of Toyota Kirloskar Motor dropped 24% in December. The company sold 12,071 units in December 2012 as compared to 15,948 units a year ago. Sales of General Motors (GM) dropped 21% to 7,067 vehicles in December as against 9,039 units sold last year.
While to many these are unrelated events happening in the USA and India, to me they seem connected. The reason is whatever happens in the United States of America, it has a direct bearing in the markets of the World. And slow growth in the other markets finally reaches the shores of the USA to compound the gloom further. And this is precisely where I would advocate that the USA, which lost yet again the chance at the UNFCCC Doha, to regain leadership position with a re-think on their global approach towards Climate Change. And in the process drive the Economy in an all new Avatar. An Economy driven by the KP-2 agenda and the other declarations which if infused with practical approach can cause a sea-change in the economic scenario with minimal disruptions to Climate. And more importantly the practical approach would be more welcome by the vulnerable Nations than the last 20 years of legal text which perhaps killed more trees for the paper than saving them.
As one notices that while the Car-makers mourn, the Oil Co’s party in India. Thus a complex chain of advantage and disadvantage from seemingly unrelated events start to unravel. But what we need are solutions which all benefit from.
A Green Business Idea can take off from these seemingly unrelated information posted above and adding a few more to this as we progress.
In my earlier post Save Petroleum form Extinction – Save Earth ! the ways to take advantage of petroleum while containing the GHG has been explained in greater detail. We could perhaps call the suggestions therein as a “Carbon Capture” program and look for an CDM advantage in KP2. Most importantly, as long as we are not burning up the fossil-fuel but converting its properties into products, we still have a chance to contain the 3°C rise in Global temperature. This suggestion must merit some attention to the Indian Oil Co’s who can thus finally see some profits form what it does. Because in India, this would directly translate in the Union Government saving some vital petro-dollars its gives away in form of fuel subsidy. Having saved on that, it could go into a public – private partnership and fund the auto-makers to create Hybrid or perhaps more efficient Electric & Bio-fuel Cars.
One of the primary reason for low Auto sales are the runaway cost of fuel. With the Urban centres nearly saturated, it was the rural markets which was feeding them. But, an average Indian is extremely cost conscious and is not driven by glib advertisements. The high operation & maintenance costs with every rise in fossil fuel cost would only drive down the sale of Auto-mobiles in India. An alternative fuel car could change that. And when we speak of leading technology, the USA holds sway over many. Thus the full circle across Nations gets completed.
- Obama’s EPA Seeks 56.2 MPG By 2025 (motortrend.com)
- Oil Ministry mulls hike in prices of diesel, kerosene (thehindu.com)
- Diesel price may go up by Rs 10/litre in next 10 months (ibnlive.in.com)
- Everything Petroleum Does, Hemp Does Better (wakingtimes.com)
- The Carbon Contained in Global Oils (carnegieendowment.org)