India to account for over 40% of global oil demand growth by 2035
The world’s energy landscape is undergoing a significant transformation, with emerging economies like India playing a crucial role in shaping the future of global energy demand. According to recent estimates shared by the Indian government, the country is expected to account for over 40% of the global increase in oil demand between 2024 and 2035. This staggering projection underscores the rapid growth of India’s economy and its increasing reliance on oil to meet its energy needs.
The data, which was shared by Minister of Petroleum and Natural Gas Hardeep Singh Puri in response to a starred question in the Lok Sabha, also reveals that India will contribute around 8% of the growth in natural gas demand during the same period. These estimates are based on the government’s analysis of global energy trends and India’s own energy requirements, which are expected to rise significantly in the coming years.
The Indian government’s projections are consistent with the country’s rapid economic growth, which has been driven by a combination of factors, including urbanization, industrialization, and a growing middle class. As the economy continues to expand, the demand for energy is expected to rise, with oil and natural gas being the primary sources of fuel. The government’s estimates suggest that India’s oil demand will grow at a rate of around 3.5% per annum between 2024 and 2035, outpacing the global average.
The implications of these projections are significant, both for India and the global energy market. On the one hand, India’s increasing reliance on oil imports will make it more vulnerable to fluctuations in global oil prices, which could have a major impact on the country’s trade deficit and overall economy. On the other hand, the government’s efforts to enhance domestic exploration and production of oil and natural gas could help reduce the country’s dependence on imports and mitigate the risks associated with price volatility.
To address these challenges, the Indian government has launched a series of initiatives aimed at boosting domestic oil and gas production. These include the introduction of new policies and regulations, such as the Hydrocarbon Exploration and Licensing Policy (HELP), which is designed to attract more investment in the sector. The government has also announced plans to auction off new exploration blocks, both onshore and offshore, in an effort to increase the country’s oil and gas reserves.
In addition to these measures, the government is also promoting the use of alternative fuels, such as ethanol and biofuels, to reduce the country’s dependence on fossil fuels. The government has set a target of 20% ethanol blending in petrol by 2025, which is expected to help reduce the country’s oil imports and decrease greenhouse gas emissions.
The growth in India’s oil demand is also expected to have a significant impact on the global energy market. As the world’s third-largest oil consumer, India’s increasing demand will help drive global oil prices, which could have far-reaching implications for the global economy. The country’s rising demand will also create new opportunities for oil-producing countries, such as Saudi Arabia and the United States, which are likely to benefit from India’s growing imports.
In conclusion, India’s projected growth in oil demand is a significant development that will have far-reaching implications for the country’s economy, energy security, and the global energy market. The government’s efforts to enhance domestic exploration and production, promote alternative fuels, and reduce dependence on imports are all critical steps towards mitigating the risks associated with rising oil demand. As the world’s energy landscape continues to evolve, India’s role as a major energy consumer will only continue to grow, making it an important player in shaping the future of global energy.
About the Author
