Trump announces historic $300 billion oil refinery deal with Reliance | The math behind $300 billion

Описание: Reliance is NOT investing $300 billion into a US oil refinery.

Hear me out!

Reliance’s total cash balance last financial year was around $11–12 billion.
Even if you add liquid assets, it comes to roughly $25 billion.

Now think about this.

Reliance’s current market cap itself is about $205 billion.

So how can a company worth $205 billion invest $300 billion?

They obviously can’t.

Trump likes to talk big numbers, and many Indian news headlines simply picked up that number without explaining the math behind it.

So people in India are left wondering-

Is this Make in India or Make for other countries?

According to America First Refining, the US company building the refinery, they have received a “nine-figure investment at a ten-figure valuation” from an unnamed global supermajor.

Which simply means the investment is under $1 billion.

The initial construction cost of the refinery is around $1.2 billion.

Reports from Gulf News suggest the total cost to build the refinery could be around $4–6 billion. Nowhere close to $300 billion.

So then where did the $300 billion number come from?

Here’s the math.

Reliance has committed to buy 1.2 billion barrels of US shale oil over 20 years, valued at about $125 billion.

This oil will then be refined into petrol, diesel and jet fuel.

The value of these refined products is estimated at another $175 billion.

So $125 billion of crude + $175 billion of refined products = $300 billion total economic value over 20 years.

Not a $300 billion investment.

And as of now, Reliance has not issued any official statement yet.

Most headlines are based only on Trump’s Truth Social post, which is absolutely misleading.

Hope this clears the confusion :)

Source- Sahi.com

#trump #reliance #oilrefinery #truthsocial #finance #stockmarket #trumptariffs #texasdebate #trumptownhall #twitterdeal