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 highlights India’s growing importance in the global energy market and underscores the need for the country to enhance its domestic exploration and production capabilities.
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 account for about 8% of the growth in natural gas demand during the same period. These estimates are based on projections by international energy agencies and reflect the country’s rapid industrialization and urbanization, which are driving up energy demand.
The Indian government has been working to enhance domestic exploration and production, with a focus on increasing the country’s energy self-sufficiency. The government has implemented various policies and initiatives aimed at promoting investment in the energy sector, including the introduction of the Hydrocarbon Exploration and Licensing Policy (HELP) and the Discovered Small Field (DSF) policy. These policies aim to simplify the process of exploring and producing oil and gas, and to attract more investment into the sector.
India’s energy demand is expected to grow significantly in the coming years, driven by rapid economic growth, urbanization, and industrialization. The country’s population is projected to reach 1.5 billion by 2030, and its economy is expected to grow at a rate of over 7% per annum. This growth will drive up energy demand, with oil and gas expected to remain the primary sources of energy for the foreseeable future.
The government’s estimates suggest that India’s oil demand will grow from around 5 million barrels per day (mb/d) in 2024 to over 7 mb/d by 2035. This growth will be driven by the transportation sector, which accounts for the majority of the country’s oil demand. The government is working to promote the use of alternative fuels, such as electric vehicles and biofuels, but oil is expected to remain the dominant fuel for the transportation sector in the near future.
In addition to oil, India’s natural gas demand is also expected to grow significantly, driven by the power and industrial sectors. The government has set a target of increasing the share of natural gas in the country’s energy mix to 15% by 2030, up from around 6% currently. This will require significant investment in natural gas infrastructure, including pipelines, import terminals, and distribution networks.
The government’s estimates highlight the need for India to enhance its domestic exploration and production capabilities. The country currently imports over 80% of its oil and around 50% of its natural gas, which makes it vulnerable to price volatility and supply disruptions. Increasing domestic production will help to reduce the country’s dependence on imports and improve its energy security.
To achieve this goal, the government is working to promote investment in the energy sector, particularly in exploration and production. The government has introduced various policies and initiatives aimed at simplifying the process of exploring and producing oil and gas, and to attract more investment into the sector. These policies include the introduction of the Open Acreage Licensing Policy (OALP), which allows companies to bid for blocks of their choice, and the National Data Repository (NDR), which provides access to data on the country’s hydrocarbon resources.
In conclusion, India’s energy demand is expected to grow significantly in the coming years, driven by rapid economic growth, urbanization, and industrialization. The government’s estimates suggest that the country will account for over 40% of the global increase in oil demand between 2024 and 2035, and around 8% of the growth in natural gas demand. To meet this demand, the government is working to enhance domestic exploration and production, with a focus on increasing the country’s energy self-sufficiency. This will require significant investment in the energy sector, particularly in exploration and production, and the government is introducing various policies and initiatives to promote investment and simplify the process of exploring and producing oil and gas.
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