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 expected 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 staggering projection highlights the country’s growing importance in the global energy market and underscores the need for the government to enhance domestic exploration and production to meet the rising demand. The data was shared by the Minister in response to a starred question in the Lok Sabha, providing valuable insights into the country’s energy requirements and the government’s plans to address them.
The estimate that India will account for over 40% of the global increase in oil demand is a significant one, indicating that the country’s energy needs will continue to drive the global oil market. This is not surprising, given India’s rapid economic growth, urbanization, and increasing population. As the country continues to industrialize and urbanize, its energy demand is likely to rise, driven by the growing need for transportation, industrial power, and consumer goods.
The government’s estimate that India will account for about 8% of the growth in natural gas demand is also noteworthy. Natural gas is a cleaner-burning fuel than oil, and its increasing demand reflects the country’s efforts to transition to a more sustainable energy mix. The government has set ambitious targets to increase the share of natural gas in the country’s energy mix, and the growing demand for the fuel is expected to drive investment in the sector.
The government’s plans to enhance domestic exploration and production are critical to meeting the country’s rising energy demand. India has significant potential for oil and gas discoveries, particularly in the eastern and western offshore regions. However, the country’s exploration and production activities have been hindered by various challenges, including regulatory issues, infrastructure constraints, and geological complexities.
To address these challenges, the government has launched several initiatives aimed at boosting domestic exploration and production. These include the introduction of new policies and regulations, such as the Hydrocarbon Exploration and Licensing Policy (HELP), which aims to simplify the process of awarding exploration contracts and increase transparency. The government has also launched the Discovered Small Fields (DSF) policy, which aims to monetize small and marginal fields that were previously unviable.
In addition to these initiatives, the government is also promoting the use of new technologies, such as artificial intelligence and machine learning, to improve the efficiency and effectiveness of exploration and production activities. The use of these technologies is expected to help reduce costs, improve discovery rates, and increase the overall productivity of the sector.
The growth in India’s energy demand also presents significant opportunities for foreign investors and companies. The government has launched several initiatives to attract foreign investment in the energy sector, including the introduction of new policies and regulations that provide a more favorable business environment. The country’s growing energy demand is also expected to drive the growth of related industries, such as petrochemicals, fertilizers, and power generation.
In conclusion, the estimate 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 is a significant one, highlighting the country’s growing importance in the global energy market. The government’s plans to enhance domestic exploration and production are critical to meeting the country’s rising energy demand, and the use of new technologies and initiatives to attract foreign investment are expected to play a key role in driving growth in the sector.
As the country continues to grow and develop, its energy needs will remain a critical challenge. However, with the right policies and initiatives in place, India can meet its energy demands while also reducing its dependence on imported fuels and promoting a more sustainable energy mix. The government’s estimate is a timely reminder of the need for continued investment and innovation in the energy sector, and the opportunities that exist for companies and investors to participate in the country’s energy growth story.
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