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 driving growth in demand for fossil fuels. According to recent estimates shared by the Indian government, the country is poised to play a major role in shaping the global energy market in the coming years. 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 data was shared by Minister of Petroleum and Natural Gas Hardeep Singh Puri in response to a starred question in the Lok Sabha.
The estimates highlight the rapid growth of India’s energy needs, driven by its large and growing population, urbanization, and economic expansion. As the country continues to industrialize and develop its infrastructure, its energy requirements are expected to rise significantly. The government has acknowledged the need to enhance domestic exploration and production to meet this growing demand and reduce the country’s reliance on imports.
The Indian government has set ambitious targets to increase domestic oil and gas production, with a focus on exploring new fields and enhancing recovery from existing ones. The government has also introduced policies to promote investment in the energy sector, including the introduction of the Hydrocarbon Exploration and Licensing Policy (HELP) and the Open Acreage Licensing Policy (OALP). These policies aim to simplify the process of allocating exploration blocks and provide more flexibility to operators.
The growth in oil demand is expected to be driven by the transportation sector, which accounts for the majority of India’s oil consumption. The country’s vehicle population is growing rapidly, with an increasing number of cars, buses, and trucks on the roads. While the government is promoting the use of alternative fuels such as electric vehicles and biofuels, oil is expected to remain the dominant fuel for the transportation sector in the coming years.
The growth in natural gas demand is expected to be driven by the power and industrial sectors. Natural gas is a cleaner-burning fuel than coal and oil, and its use is expected to increase as the country transitions to a more sustainable energy mix. The government has set a target to increase the share of natural gas in the energy mix to 15% by 2030, up from around 6% currently.
The Indian government’s estimates are in line with global forecasts, which predict that energy demand will continue to grow in the coming years, driven by emerging economies such as India and China. The International Energy Agency (IEA) has forecast that global energy demand will increase by 30% by 2030, with India and China accounting for around 50% of this growth.
While the growth in energy demand presents opportunities for economic growth and development, it also poses significant challenges. The Indian government will need to balance the need to meet growing energy demand with the need to reduce greenhouse gas emissions and mitigate the impacts of climate change. The government has set a target to reduce the country’s carbon intensity by 33-35% by 2030, and is promoting the use of renewable energy sources such as solar and wind power.
In conclusion, India’s energy landscape is undergoing a significant transformation, with the country poised to play a major role in shaping the global energy market in the coming years. 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. While this growth presents opportunities for economic growth and development, it also poses significant challenges, including the need to reduce greenhouse gas emissions and mitigate the impacts of climate change. The government will need to balance these competing demands and promote a sustainable energy mix that supports the country’s economic growth while protecting the environment.
About the Author
