India to account for over 40% of global oil demand growth by 2035
The world’s energy landscape is undergoing a significant transformation, driven by the growing demands of emerging economies. India, in particular, is poised to play a crucial role in shaping the global energy market in the coming years. According to recent estimates shared by the Minister of Petroleum and Natural Gas, Hardeep Singh Puri, India will account for over 40% of the global increase in oil demand and about 8% of the growth in natural gas demand between 2024 and 2035. This projection highlights the country’s growing energy needs and its potential to influence the global energy market.
The data, shared by the Minister in response to a starred question in the Lok Sabha, underscores the importance of India’s energy sector in the global context. The country’s rapid economic growth, coupled with its large and growing population, is driving up energy demand. As the world’s third-largest oil consumer, India’s energy needs are expected to continue rising in the coming years, with oil and natural gas being the primary sources of energy.
The government’s estimates suggest that India’s oil demand will grow at a significant pace, driven by the increasing demand for transportation fuels, industrial growth, and rising household incomes. The country’s growing middle class, in particular, is expected to drive up demand for oil and natural gas, as they increasingly adopt modern lifestyles and technologies. Furthermore, the government’s initiatives to promote economic growth, such as the “Make in India” program, are also expected to contribute to the rising energy demand.
In addition to oil, India’s natural gas demand is also expected to grow, driven by the government’s efforts to promote the use of cleaner fuels. The country has set ambitious targets to increase the share of natural gas in its energy mix, with a focus on reducing greenhouse gas emissions and improving air quality. The growth in natural gas demand is expected to be driven by the power, industrial, and transportation sectors, with the government promoting the use of liquefied natural gas (LNG) as a cleaner alternative to traditional fuels.
To meet the growing energy demand, the government has announced plans to enhance domestic exploration and production. The Minister of Petroleum and Natural Gas has emphasized the need to increase domestic oil and gas production, with a focus on reducing dependence on imports. The government has launched several initiatives, including the “Hydrocarbon Exploration and Licensing Policy” (HELP), to promote exploration and production activities in the country. The policy aims to simplify the process of awarding oil and gas blocks, with a focus on attracting foreign investment and promoting private sector participation.
The government’s efforts to promote domestic exploration and production are expected to have a significant impact on the country’s energy security. By increasing domestic production, India can reduce its dependence on imports, which currently account for over 80% of its oil needs. This, in turn, can help reduce the country’s trade deficit and mitigate the impact of price volatility on the economy. Furthermore, the growth of the domestic energy sector is expected to create new job opportunities and stimulate economic growth in the country.
The estimates shared by the Minister of Petroleum and Natural Gas also highlight the need for India to diversify its energy mix and promote the use of alternative fuels. The country has set ambitious targets to increase the share of renewable energy in its energy mix, with a focus on reducing greenhouse gas emissions and improving air quality. The government has launched several initiatives, including the “National Solar Mission” and the “Faster Adoption and Manufacturing of Electric Vehicles” (FAME) scheme, to promote the use of renewable energy and electric vehicles.
In conclusion, India’s energy sector is poised to play a significant role in the global energy market in the coming years. The country’s growing energy demand, driven by its rapid economic growth and large population, is expected to drive up demand for oil and natural gas. The government’s estimates suggest that India will account for over 40% of the global increase in oil demand and about 8% of the growth in natural gas demand between 2024 and 2035. To meet this growing demand, the government has announced plans to enhance domestic exploration and production, with a focus on reducing dependence on imports and promoting energy security. As the country continues to grow and develop, its energy sector is expected to play an increasingly important role in shaping the global energy landscape.
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