US to lead global recovery, bullish on India, says Mukesh Ambani

Discussion in 'Americas' started by anoop_mig25, Feb 12, 2013.

  1. anoop_mig25

    anoop_mig25 Senior Member Senior Member

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    US to lead global recovery, bullish on India, says Mukesh Ambani

    MUMBAI: Billionaire Mukesh Ambani expects the United States to lead a recovery in the global economy this year and is bullish about the Indian growth story despite the recent glitches. "I am more optimistic than most and my view is that this year we will see the beginning of the recovery, particularly in the US," Ambani said in an interview to a private television.

    He said US initiatives in energy would help the entire world. "For many decades we have heard that the US will be independent of the foreign imports of energy. Realistically, it is my judgement this will happen in the next five-seven years. The US has truly found non-conventional energy in shale oil and gas, which will really bring in benefits not only for the people in the US but for (everyone) across the world," Ambani said.

    Reliance itself has invested $5.2 billion in the shale business in the US and has set up joint ventures with Chevron, Pioneer Natural Resources and Carrizo Oil & Gas and a midstream joint venture with Pioneer. RILBSE 0.42 %, which operates the world's largest refining complex at Jamnagar, plans to invest 1 lakh crore in the next five years in energy and retail businesses to double its operating profit. The company has diversified into solar power business and expects solar power to become price competitive as compared with power generated from fossil fuel.
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    So basically what some poster are saying here and what i have read from other news source is correct

    And i have hread that for most of its oil and gas consumption USA was dependent upon candana rather them gulf. Am i correct
     
    Last edited: Feb 12, 2013
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  3. Damian

    Damian Defence Professionals Defence Professionals

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    As far as I know USA mostly imported oil and gas from Canada, Venezuela etc. + their own resources.

    Middle East is a bit different kind of story, they have impact on global market prices, and even if USA do not use them as main source, they have impact on USA indirectly.

    It will change when USA will start to use their own resources on big scale.
     
  4. anoop_mig25

    anoop_mig25 Senior Member Senior Member

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    Can u elborate on bolded part
     
  5. spikey360

    spikey360 Crusader Senior Member

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    He said that because he'd invested a lot of money in US shale gas. This is an attempt to put his mouth where his money is.
     
  6. Damian

    Damian Defence Professionals Defence Professionals

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    It is simple, the whole resources market is a one big organism, even if USA alone do not import most of oil and gas from middle east, other countries, many of them also USA's allies do this. Middle eastern countries like Saudi Arabia, are then also influential when it comes to the market prices, and because as I said, this market is one huge organism, what Saudi Arabia do, indirectly affects also USA. This is of course example only. But it shows that USA have vital interests in middle east even if events that happen there are not directly affecting USA. These are probably consequences of the global market.

    However it isallready obvious that USA alone have bigger reserves of shale gas and oil than Saudi Arabia, Russia and several other countries have conventional resources of oil and gas.

    This will effect in several things, first new competitor on market, second USA will be independent on this resources, which means it will not be directly affected, third USA will be capable to pay it's debts and kick forward their economy thanks to exports, forth USA thanks to improving it's economy will be again capable to increase funds for their military.

    There are many examples of how natural resources helped to rebuild economy of countries where situation was tragic, for example Russia, and remember that their economy was in ashes, USA is nowhere close to such point.

    Money from natural resources will be usefull in any aspect, for example it can be better spent on education.

    However I hope that Obama won't be in charge when income from natural resources will be significant enough, he will not use it for investitions but mostly likely wasted by him on inproductive and useless part of society in form of social support, that is allways inefficent.
     

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