Tech
India’s rapid take-up of electric vehicles prompts rethink about long-term fuel needs
The rapid take-up of electric vehicles in India’s fledgling market has prompted a major rethink about the country’s long-term fuel needs as refiners in Asia’s third-largest economy hasten their shift away from oil production.
India, one of the world’s fastest-growing oil markets, has lagged behind major economic peers in Europe and Asia in the adoption of EVs but sales are now picking up and investment in the production of new autos and energy infrastructure is accelerating.
The faster-than-anticipated industry growth means India’s gasoline consumption will peak sooner than previously thought, some analysts and industry participants say, forcing top oil firms to expedite transition plans to alternative business lines, notably increased petrochemical manufacturing.
“We were anticipating that peak gasoline demand will be around 2040-2045 earlier, but going by the trend and the speed with which we are developing the ecosystem around EVs, the peak demand would be the mid-2030s,” Debasish Mishra, Partner, energy, resources and industrials, Deloitte India told Reuters. He expects diesel demand to peak around the same time as petrol.
Slowing fuel demand will be quite visible by around 2030 as EV technologies stabilise, compared with an earlier projection of the 2040s, an industry source at an India-based refinery told Reuters, adding that the heavy trucking sector will see changes a little later.
“Refiners are already investing in petrochemical integration to cope with the potential loss in fuel demand,” said the source who declined to be named because he is not authorised to speak to the media.
Currently, around 90% of Indian petrochemical demand is met by China, he said, so a shift by Indian refiners towards domestic chemical needs could dramatically change supply dynamics.
Indian refiners are investing billions of dollars to raise petrochemical capacity. Indian Oil Corp (IOC.NS), the country’s top refiner, is raising the petrochemical capacity at its Panipat refinery by 13% and building new plants linked to its Paradip and Gujarat refineries.
Reliance Industries Ltd (RELI.NS), operator of the world’s biggest refining complex, plans to invest 750 billion rupees ($9.38 billion) to expand its chemical business, while Essar Group plans to set up a 400 billion rupee petrochemical complex in east India.
Nayara Energy (ESRO.M3) expects 15-20 new integrated petrochemical plants will start in the next decade.
EVs, TRUCKS
China currently dominates global EV production and domestic adoption of new energy vehicles is well advanced. The China Passenger Car Association expects sales of new energy cars, mainly EVs, to hit 8.5 million units this year, or 36% of all new sales.
Despite new momentum in India, the question for the country is whether it will be enough to ultimately shake its fossil fuel dependency.
“Limited charging infrastructure, low domestic EV production and high EV battery costs remain some of the key hurdles in maintaining strong EV uptake in the long run,” said Dylan Sim, oil market analyst at FGE.
India’s progress is modest by global comparisons, however, last year registered EVs tripled to 1.01 million from 2021, most of them two- and three-wheelers.
While EVs make up just 1% of the 3 million cars sold each year, New Delhi wants to grow this to 30% by 2030 and has introduced a range of policies to get there, including tax breaks for consumers.
India’s state refiners, which dominate fuel retailers, plan to set up EV charging facilities at more than 22,000 fuel stations and highways by 2024.
The private sector is also providing EV bulls hope.
Gurugram-headquartered ride-hailing service Blusmart, which owns a fleet of 3,000 EVs, has seen brisk growth.
Its co-founder Punit Goyal told Reuters it now provides 500,000 monthly trips, up from about 35,000 when it started in 2019.
Local automakers like Tata Motors and Mahindra & Mahindra have made big investments while foreign players like Kia and BYD have announced premium models for the Indian market.
About 40% of India’s fuel demand is for diesel, which is mostly used by trucks.
Chetan Maini, chairman of Sun Mobility, which provides electric mobility solutions, said India’s smaller trucks, including three-wheelers, are likely to be early adopters in the transition given the cost advantage for e-commerce and delivery firms.
His company currently has 80 battery swapping stations in Delhi for two- and three-wheelers and plans to set up 200 by March.
“A large opportunity by 2030 is going to be on the trucking side because the cost economics will work out really well,” Maini said.
Tech
AI with reasoning power will be less predictable
Former OpenAI chief scientist Ilya Sutskever, one of the biggest names in artificial intelligence, had a prediction to make on Friday: reasoning capabilities will make the technology far less predictable.
An idea that his team had explored a decade ago, that scaling up data to “pre-train” AI systems would send them to new heights, was starting to reach its limits, he said. More data and computing power resulted in ChatGPT which OpenAI launched in 2022, to the world’s acclaim.
“But pre-training as we know it will unquestionably end,” Sutskever declared before thousands of attendees at the NeurIPS conference in Vancouver. “While computing is growing,” he said, “the data is not growing, because we have but one internet.”
Sutskever offered some ways to push the frontier despite this conundrum. He said technology itself could generate new data, or AI models could evaluate multiple answers before settling on the best response for a user, to improve accuracy. Other scientists have set sights on real-world data.
But his talk culminated in a prediction for a future of superintelligent machines that he said “obviously” await, a point with which some disagree. Sutskever this year co-founded Safe Superintelligence Inc in the aftermath of his role in Sam Altman’s short-lived ouster from OpenAI, which he said within days he regretted.
Long-in-the-works AI agents, he said, will come to fruition in that future age, have a deeper understanding, and be self-aware. He said AI will reason through problems like humans can.
From a Nobel Prize winner’s prediction to Google’s new generation quantum chip,
There’s a catch.
“The more it reasons, the more unpredictable it becomes,” he said.
Reasoning through millions of options could make any outcome non-obvious. By way of example, AlphaGo, a system built by Alphabet’s DeepMind, surprised experts of the highly complex board game with its inscrutable 37th move, on a path to defeating Lee Sedol in a match in 2016.
Sutskever said similarly, “The chess AIs, the really good ones, are unpredictable to the best human chess players.”
AI as we know it, he said, will be “radically different.”
Tech
Data portal to help Pakistan in key sectors
Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal says data is more valuable than oil in today’s world.
“Data is more valuable than oil as its role in decision-making can significantly enhance productivity and drive economic and social progress,” the minister said at a symposium on Thursday.
In his keynote address at the inaugural ceremony of the two-day Data for Development (D4D) Symposium, an initiative by UNFPA, in partnership with Sustainable Development Policy Institute (SDPI) in the first year of initiative with the support of the Government of the Netherlands, Iqbal applauded the initiative and remarked that data had evolved beyond a mere tool and become a cornerstone for development and transformative change.
He highlighted that despite its potential, Pakistan faces challenges in ensuring widespread internet access, particularly in the fields of education, health, and governance.
The minister referenced a United Nations report that revealed 68pc of the Sustainable Development Goals (SDGs) rely on high-quality data. However, developing countries like Pakistan continue to struggle with data management and infrastructure, he added.
He also shared examples of how data had been effectively utilised in Pakistan, such as using satellite data to monitor glacial melt in Gilgit-Baltistan and implementing social protection initiatives like the Benazir Income Support Program (BISP) that successfully disbursed cash relief to over 2.7 million families based on data during the 2022 floods.
“We are embedding AI ethics to ensure transparency and fairness in algorithmic models,” he explained, highlighting the government’s efforts to design systems that prioritise equity and inclusivity.
Dr Luay Shabaneh, UNFPA Country Representative, Pakistan said data collection must translate into actionable knowledge, particularly in sectors like education, nutrition, and maternal health.
He called for increased openness in data collection and sharing, and greater capacity for transforming raw data into quality insights.
Ambassador Shafqat Kakakhel, Chairman SDPI Board of Governors who opened the symposium, commended the D4D initiative for strengthening government agencies’ capacities at both federal and provincial levels.
The project aims to foster a culture of evidence-based decision-making, enhance the national statistical system, and bolster data collection processes across public entities.
Ahsan Iqbal, along with others, launched Pakistan’s first D4D Portal, designed to centralise critical data on demographics, health, gender, education, and beyond.
Tech
Canada proposed 15bn dollars incentive to boost AI green data centre investment
Canada’s federal government has considered making up to $15 billion available as an incentive to encourage major domestic pension funds to invest in AI data centres powered by green energy, the Globe and Mail reported on Thursday.
Ottawa floated the proposal in private consultation with pension funds as part of a suite of potential measures in consideration to be included in its fall economic statement, the report added citing sources with knowledge of the discussions.
Artificial intelligence tools such as OpenAI’s ChatGPT depend on chips and energy. But a $1 trillion rush to build data centres faces constraints on planning and power globally.
Last month, utilities, power regulators and researchers in a half-dozen countries told Reuters the surprising growth in power demand driven by the rise of AI and cloud computing is being met in the near-term by fossil fuels like natural gas, and even coal, because the pace of clean-energy deployments is moving too slowly to keep up.
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