Mar 6, 2009|
Oil exploration in India cooling off
As per a leading business daily, several oil explorers with projects in India are looking to sell their stakes. GAIL, Australia based Santos and Canada based Canoro are among the companies seeking to farm out their interests.
It is a well known fact that commodity industries behave in a cyclical manner. High prices for a commodity pull the profits in the sector upwards. As a result fresh investment gets attracted, thereby increasing supply. Prices moderate. These low prices for a commodity push the profits in the sector downwards. As a result fresh investments into the sector dry up. Hence, it should come as no surprise that the crash in crude prices will lead to lower investment in oil exploration. Of course, the global liquidity crunch has only worsened the situation by making it difficult to raise money for investments.
It also doesn't help that there is uncertainty over the taxation of new production. The Indian government must recognise these developments as a fresh auction of oil blocks, NELP VIII, is around the corner.
Dow falls further
Worries over GM and Citigroup in pushed the US Dow Jones Industrial Index and S&P 500 to new 12-year lows yesterday. The Dow fell 281 points, or 4.1%, to close at 6,594, the lowest since April 15, 1997. The Dow has now declined in 14 of the last 18 sessions.
Narayana Murthy's urban legend
Amar Chitra Katha, the publisher of illustrated Indian epics and legends has decided to pick up a contemporary story. That of Infosys founder, N. R. Narayana Murthy. The publication will also publish the stories of APJ Abdul Kalam, Sachin Tendulkar, Homi Bhabha and Vikram Sarabhai. At a time when business leaders are attracting attention for all the wrong reasons, this comes as a welcome reminder that there are exemplary people in the other India that exists.
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