US drillers cut oil and gas rigs for 10th week in a row, says Baker Hughes
energy firms
this week cut the number of oil and natural
gas rigs
operating for a 10th week in a row for the first time since July 2020, energy services firm Baker Hughes said in its closely followed report on Thursday.
Baker Hughes released the report a day earlier than usual on Thursday due to the US July Fourth holiday on Friday.
This week's decline puts the total rig count down 46 rigs, or 8 per cent below this time last year, Baker Hughes said.
Oil rigs
fell by seven to 425 this week, their lowest since September 2021, while gas rigs fell by one to 108.
The
oil and gas rig count
declined by about 5 per cent in 2024 and 20 per cent in 2023 as lower US oil and gas prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.
Even though analysts forecast US spot crude prices would decline for a third year in a row in 2025, the US Energy Information Administration (EIA) projected crude output would rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.4 million bpd in 2025.
On the gas side, the EIA projected an 84 per cent increase in spot gas prices in 2025 would prompt producers to boost drilling activity this year after a 14 per cent price drop in 2024 caused several energy firms to cut output for the first time since the COVID-19 pandemic reduced demand for the fuel in 2020.
The EIA projected gas output would rise to 105.9 billion cubic feet per day (bcfd) in 2025, up from 103.2 bcfd in 2024 and a record 103.6 bcfd in 2023.
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Time of India
36 minutes ago
- Time of India
From Free Power to EVs: Punjab's power demand set to soar to 1.26 LMU by 2036.
With box attached in CCI Chandigarh: Electricity demand in Punjab is projected to soar to 1,26,347 million units (MU) by financial year 2036, driven by industrial expansion, increased household consumption, and a sharp rise in electric vehicle (EV) adoption. A new study urges the state to undergo a major energy transition — cutting dependence on fossil fuels, ramping up renewables, and upgrading infrastructure — to avoid power shortages and environmental setbacks. State's industrial ambition are still tied to old-school energy. The report, 'Punjab Roadmap 2036: Clean Energy Transition', published by the Centre for Study of Science, Technology and Policy (CSTEP), projects a 68% increase from the state's current demand of 75,316 MU in FY 2025. Peak power demand is expected to rise from 16,058 MW in 2025 to 27,040 MW by 2036. Punjab has already experienced power deficits in FY 2022 and 2023 — 404 MU and 330 MU respectively — following a post-Covid industrial revival and the rollout of the Aam Aadmi Party (AAP) govt's 300-unit free power scheme for households. Despite having an installed generation capacity of 14,861 MW, the state heavily depends on thermal power, which accounts for 56% of its energy mix. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo Solar and wind make up just 18%, while hydro contributes 23%. Nuclear and other non-conventional sources remain marginal. The study calls for capacity additions of 26,372 MW by the 2036 fiscal, including 7,451 MW of energy storage through pumped hydro and battery systems to handle the intermittency of renewable energy sources. Electric vehicles are expected to further reshape Punjab's energy landscape. From just 75 EVs registered in 2017, the number rose to 25,492 in 2023, and is projected to reach 51 lakh by 2036. EV adoption is forecast to push electricity demand up by 9,087 MU. By 2030, EVs are expected to account for 30% of all new vehicle registrations, rising to 60% by FY 2036. The roadmap calls for grid infrastructure upgrades to accommodate this shift, along with public and private EV charging networks. Renewable shift, nuclear support To reduce dependence on fossil fuels, the report recommends a 67% renewable energy share by 2036 under a 'clean energy scenario', up from 46% in the 'business-as-usual' model. This shift could cut carbon emissions by 41%, reduce power purchase costs by 7.7%, and eliminate the need for about 7% of new power plants. The state is also advised to procure 2,637 MW of nuclear power to ensure consistent supply, during peak demand periods or low renewable output particularly. Land, rooftop solar, & farming Punjab's reliance on agriculture and its limited availability of non-fertile land pose challenges for large-scale renewable projects. To address this, the report urges the identification of barren or unused land for solar and wind farms. As of April 2025, the state had only 454 MW of installed rooftop solar capacity — far below potential. The roadmap suggests accelerating rooftop solar programmes, deploying smart meters, and enforcing Energy Conservation Building Codes. In the agriculture sector, the study recommends replacing 22% of inefficient irrigation pump sets with energy-efficient, star-rated alternatives by 2036, supported by a buy-back and subsidy scheme. Solarisation of pump sets is also highlighted as a key strategy to reduce the state's energy burden. Officials say the clean energy path requires higher initial investment but promises long-term economic, environmental, and energy security benefits. Punjab's energy transformation, experts say, will depend not only on technology and investment — but on political will and public participation to power the shift toward a cleaner, more resilient grid. For in the end, it's not just wires and will, but politics, people, and the power bill. box Two Pathways, One Decision The study outlines two scenarios for Punjab's energy future:- >> Business-as-Usual | 46% renewables, 54% fossil fuels, with demand reaching 1,26,347 MU and emissions at 41 MtCO2 >> Clean Energy Scenario | 67% renewables, 33% fossil fuels, with demand moderated to 1,22,271 MU and emissions cut to 30 MtCO2 — a 4% annual decline box Key Recommendations >> Identify non-fertile land for solar/wind projects >> Invest in 7,451 MW of energy storage (pumped hydro + battery) >> Procure 2,637 MW of nuclear energy >> Scale rooftop solar, smart metering, and green building codes >> Introduce green finance, buy-back of inefficient farm pumps MSID:: 122251659 413 |
The Hindu
6 hours ago
- The Hindu
Cease the cess: on the GST and reforms
The eighth anniversary of the Goods and Services Tax (GST) in India, on July 1, coincided with the poorest tax collections the indirect tax system has seen in some time, highlighting the need for structural changes in the system. The latest GST collections stood at ₹1.85 lakh crore in June 2025, the lowest in four months. This amount was just 6.2% higher than the collections in June 2024, the slowest growth rate in four years. Looking past the gross collections, the data show that once refunds are accounted for, the growth in the government's actual collections was just 3.3%. Further, the revenue from domestic transactions, excluding imports, was an anaemic 4.6% higher than in June last year — barely faster than the average rate of inflation since then. Being a consumption tax, a dip in GST collections reflects a dip in economic activity. But it also reflects inefficiencies in the system, which must now suitably be addressed eight years on. A common demand is for fuel to be included in GST. There is, however, strong resistance to this from State governments, since fuel and alcohol are the few sources of revenue States have with them that are independent of the Centre. However, this cannot be reason enough to perpetually keep these items excluded. It is 'one nation, one tax' after all, and it is high time that the goal was achieved in full. As for the revenue hit to States, the Centre must accede to their request for a higher share in central taxes. The Centre must also stop increasingly relying on non-shareable cesses for its revenue. For their part, States must resist the temptation to use this higher amount on election-oriented untargeted freebies. Trust goes two ways. The other popular reform is a reduction in the number of GST rates. This, too, is overdue, and the GST Council's fitment and rate-setting committees are examining the issue. Connected to this is the question of what is to be done with the GST Compensation Cess, which is levied over and above the 28% slab. It was originally intended to compensate States for any losses arising out of GST implementation for a period of five years. It was then extended until March 2026 to repay the loan taken by the Centre to pay this compensation since the COVID-19 pandemic had disrupted revenues. The Centre should avoid the temptation to subsume this cess into the broader GST rates. Instead, with its job done, the cess must be removed. Taxation is not just a covenant between the Centre and the States. It is also one with the people. Removing a cess that is no longer needed will not only garner public praise but could also spur some sorely needed urban consumption.
Time of India
10 hours ago
- Time of India
$425K debt/family: How Trump's bill could gut US - Wall Street waves red flag
AI image for representation only. President Donald Trump's newly passed $3.4 trillion tax and spending package - dubbed by supporters as 'One Big Beautiful Bill' - is being denounced by Wall Street figures, economists, and bond market analysts as a fiscal time bomb. Among the most vocal: Ray Dalio, founder of Bridgewater Associates, who says the bill will lead to 'big, painful disruptions' for American families and the global financial system if not urgently reversed. Why it matters The legislation, passed with razor-thin margins in Congress, is expected to add $3.4 trillion to the national deficit over the next decade, according to the Congressional Budget Office. It comes at a time of relative economic stability - not a war, recession, or pandemic. Critics argue that deficit spending without crisis justification marks a dangerous shift in American fiscal policy. Dalio breaks it down in stark terms: annual federal spending will balloon to around $7 trillion, while revenues will hover near $5 trillion. 'The debt... is now about 6x of the money taken in, 100 percent of GDP, and about $230,000 per American family,' Dalio wrote. In ten years, those numbers could rise to '7.5x the money taken in, 130 percent of GDP, and $425,000 per family.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo The big picture This isn't just theoretical. Rising federal debt will demand more borrowing, and that means higher interest and principal payments. Dalio estimates that those costs will soar from $10 trillion today to $18 trillion - with annual interest alone doubling to $2 trillion. What happens next, he warns, could be one of three scenarios: A politically unpopular slashing of spending. A massive increase in taxes. Or a monetary intervention involving printing more money and lowering interest rates - which would 'devalue the dollar and hurt bondholders.' Between the lines The bond market - where the US borrows money - has already begun sending distress signals. Yields on long-term Treasurys jumped in May, nearing their highest levels in two decades, reflecting unease over the government's fiscal trajectory. Bill Gross, founder of Pimco and one of the bond market's most respected voices, likened the US to 'a teenager with a credit card that has no limits.' He warned that the payment is coming - not via default, but through 'a weak dollar and higher interest rates.' Zoom in The Wall Street Journal, in an in-depth analysis, highlighted the extraordinary nature of the moment: a historic deficit without a national emergency. Typically, large-scale federal borrowing is reserved for times of crisis - like the 2008 financial collapse or the Covid pandemic. This time is different. 'The market has been willing to tolerate spikes in borrowing during crises... What stands out now... is that America is bingeing on debt when there's no such emergency requiring it,' the WSJ noted. Moody's projects that the deficit, already at $1.8 trillion (6% of GDP), will climb to nearly 9% by 2035. That would push the national debt from just under 100% of GDP today to more than 130% - surpassing even World War II-era highs. What they are saying Dalio sees systemic risk not just for America, but for the global economy: 'The US Treasury market is the backbone of all capital markets, which are the backbones of our economic and social conditions.' If confidence in US debt erodes, the entire financial architecture could wobble. Ken Rogoff, former chief economist of the IMF, agrees: 'It's not clear markets will tolerate' further borrowing sprees when a real crisis hits. He warned that the US is leaving itself without fiscal headroom to respond to future emergencies. Even the dollar - long considered a safe haven - is starting to reflect these jitters. It just posted its worst first-half performance since 1973, a signal that foreign investors may be losing confidence in the US fiscal trajectory. The Trump administration's view President Trump and Republican lawmakers say the bill's $4.5 trillion in tax cuts will supercharge economic growth. They argue that cuts to Medicaid, food stamps, and green energy subsidies are essential to "rightsizing" government. 'For all cost-cutting Republicans, of which I am one, REMEMBER, you still have to get reelected,' Trump posted online. 'We will make it all up, times 10, with GROWTH, more than ever before.' They also tout provisions such as new deductions for tips and overtime, a hike in the child tax credit, and business incentives to spur investment. Trump calls the bill 'a phenomenal victory' and plans to sign it on July 4th. The math doesn't add up - at least not for Dalio Dalio doesn't buy the growth-will-save-us logic. He warns that the exploding interest burden will force the Fed to either crush the economy with higher rates or suppress rates artificially - triggering inflation and dollar devaluation. The scenario he paints is bleak: 'Unless this path is soon rectified to bring the budget deficit from roughly 7% of GDP to about 3%... big, painful disruptions will likely occur.' That includes a potential bond market revolt, skyrocketing borrowing costs for households and businesses, and a shrinking safety net just as economic headwinds build. Catch up quick Congress passed the bill 218–214 after weeks of internal GOP wrangling. The Senate version was made law with Vice President JD Vance casting the tie-breaking vote. The CBO estimates 11.8 million Americans will lose health coverage and 3 million will lose food stamp eligibility by 2034. Some Republicans expressed discomfort with the deficits - then voted yes anyway. What's next Markets are watching closely. The Fed, already navigating post-pandemic economic turbulence, may have to intervene if long-term rates spike. That could limit its ability to fight inflation or support growth. Foreign investors, who hold nearly one-third of US public debt, may start reallocating to other safer assets. As Harvard economist Jeremy Stein puts it, 'I wouldn't be surprised... if they start shifting that reinvestment more towards, say, Europe or German bonds.' The cost of Trump's 'big, beautiful' bill may not be fully visible today - but Dalio and Wall Street are betting we'll all feel it tomorrow. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
