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 growing demand from emerging economies, particularly India. According to recent estimates shared by the Minister of Petroleum and Natural Gas, Hardeep Singh Puri, in the Lok Sabha, India is expected to play a crucial role in driving global energy demand in the coming years. The data reveals 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.
This staggering projection underscores the country’s rapidly growing energy needs, driven by its large and expanding population, urbanization, and economic growth. As the world’s third-largest consumer of oil, India’s energy demand is expected to continue rising, driven by the increasing use of vehicles, industrial activities, and other sectors. The government’s estimates suggest that India’s oil demand will grow at a rate of 3.3% per annum between 2024 and 2035, outpacing the global average.
The significant contribution of India to global oil demand growth is a result of several factors. Firstly, the country’s population is projected to continue growing, with an estimated 1.4 billion people by 2025. This will lead to an increase in energy consumption, as more people will require access to transportation, housing, and other energy-intensive services. Secondly, India’s economy is expected to continue growing, driven by government initiatives to promote manufacturing, infrastructure development, and urbanization. This will lead to an increase in industrial activity, which will, in turn, drive up energy demand.
Furthermore, the Indian government’s efforts to enhance domestic exploration and production are expected to play a crucial role in meeting the country’s growing energy needs. The government has launched several initiatives to promote oil and gas production, including the introduction of the Hydrocarbon Exploration and Licensing Policy (HELP) and the Discovered Small Fields (DSF) policy. These policies aim to attract investment, enhance transparency, and streamline the regulatory framework to promote exploration and production activities.
The growth in natural gas demand is also expected to be significant, with India accounting for about 8% of the global increase between 2024 and 2035. Natural gas is considered a cleaner-burning fuel compared to coal and oil, and its use is expected to increase as the country transitions towards 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 the current level of around 6%.
To meet the growing demand for oil and gas, the government is working to enhance domestic production. The state-owned oil and gas companies, such as Oil and Natural Gas Corporation (ONGC) and Indian Oil Corporation (IOC), are investing heavily in exploration and production activities. The government is also promoting private sector participation in the oil and gas sector, with several private companies, including Reliance Industries and Vedanta, already operating in the sector.
In addition to domestic production, India is also looking to import oil and gas from other countries to meet its growing demand. The country has already signed several agreements with major oil-producing countries, including the United States, Saudi Arabia, and Russia, to import oil and gas. The government is also exploring new sources of energy, including renewable energy, to reduce its dependence on imported fossil fuels.
In conclusion, India’s energy demand is expected to play a significant role in driving global energy trends in the coming years. The country’s growing population, urbanization, and economic growth will drive up energy demand, with oil and gas being the primary sources of energy. The government’s efforts to enhance domestic exploration and production, promote private sector participation, and import oil and gas from other countries will be crucial in meeting the country’s growing energy needs. As the world’s energy landscape continues to evolve, India’s energy demand is expected to remain a key driver of global energy trends.
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