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 increasing demand for energy from 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, in the Lok Sabha, India is expected to account for over 40% of the global increase in oil demand between 2024 and 2035. Additionally, the country is projected to contribute around 8% to the growth in natural gas demand during the same period.
This significant increase in energy demand is primarily driven by India’s rapid economic growth, urbanization, and industrialization. As the country continues to develop and expand its infrastructure, the demand for energy is expected to rise exponentially. The government has recognized the importance of meeting this growing energy demand and has set ambitious targets to enhance domestic exploration and production of oil and natural gas.
The estimates shared by the Minister of Petroleum and Natural Gas are based on projections by reputable international energy agencies, including the International Energy Agency (IEA). According to the IEA, India’s oil demand is expected to grow from 5.2 million barrels per day in 2022 to 7.5 million barrels per day by 2035. This represents a growth rate of over 40% in just 13 years, making India the largest contributor to global oil demand growth during this period.
The growth in natural gas demand is also expected to be significant, with India’s gas demand projected to increase from 64 billion cubic meters in 2022 to 120 billion cubic meters by 2035. This represents a growth rate of over 80% during the same period. The government has set a target to increase the share of natural gas in the country’s energy mix to 15% by 2030, up from the current level of around 6%.
To meet the growing energy demand, the government has launched several initiatives to enhance domestic exploration and production of oil and natural gas. These include the introduction of new exploration licensing policies, the development of new gas infrastructure, and the promotion of renewable energy sources. The government has also set a target to reduce the country’s dependence on imported oil by 10% by 2025.
The increasing demand for energy in India presents both opportunities and challenges. On the one hand, it provides a significant opportunity for domestic oil and gas companies to expand their operations and increase production. On the other hand, it also poses significant challenges, including the need to ensure energy security, reduce dependence on imported oil, and mitigate the environmental impact of energy production and consumption.
To address these challenges, the government has launched several initiatives to promote sustainable energy development. These include the promotion of renewable energy sources, such as solar and wind power, and the development of new energy-efficient technologies. The government has also set a target to reduce the country’s greenhouse gas emissions by 33-35% below 2005 levels by 2030.
In conclusion, India’s energy demand is expected to play a significant role in shaping the global energy market in the coming years. The country’s growing economy, urbanization, and industrialization are driving up energy demand, and the government has set ambitious targets to enhance domestic exploration and production of oil and natural gas. While there are challenges to be addressed, the opportunities presented by India’s energy demand growth are significant, and the government is taking steps to promote sustainable energy development and reduce the country’s dependence on imported oil.
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