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Showing posts from June, 2019

We are near the peak world oil consumption-data and projections from 1950 to 2050

According to BP's Statistical Review of World Energy, world primary energy consumption reached 13,147 million tons of oil equivalent in 2015 (BP 2016). From 2010 to 2015, world primary energy consumption grew at an average annual rate of 1.5 percent. World oil consumption (including biofuels) was 4,331 million tons in 2015, accounting for 33 percent of the world energy consumption. From 2010 to 2015, world oil consumption grew at an average annual rate of 1.2 percent. World natural gas consumption was 3,135 million tons of oil equivalent in 2015, accounting for 24 percent of the world energy consumption. From 2010 to 2015, world natural gas consumption grew at an average annual rate of 1.7 percent. World coal consumption was 3,840 million tons of oil equivalent in 2015, accounting for 29 percent of the world energy consumption. From 2010 to 2015, world coal consumption grew at an average annual rate of 1.1 percent. World consumption of nuclear electricity was 583 millio

Don’t shun debt funds but choose carefully

Last week, the unthinkable happened for debt fund investors. Most of the 165 mutual fund schemes across 24 asset management companies (AMCs) that were exposed to debt issued by DHFL group as of 30 April had to write down the value of their holdings by 75%. As a result, the value of several of these schemes fell sharply, with one of them, DHFL Pramerica Medium Term Fund, falling by more than half, 52.99%. Investors fleeing debt funds for the safety of fixed deposits (FDs) due to ongoing market worries may be overreacting. The total assets under management (AUM) of debt funds is ₹13.24 trillion, about 51% of the total mutual fund industry AUM of₹25.93 trillion. The debt fund AUM figure will go up if we include the debt portfolio of hybrid funds (which hold equity and debt). Mint estimates that mutual fund exposure to NBFCs and HFCs is ₹3.12 trillion (as of 30 April), down 17.6% from₹3.79 trillion in September 2018. Only a few of these NBFCs and HFCs are facing difficulty making debt repa