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 was shared by Minister of Petroleum and Natural Gas Hardeep Singh Puri in response to a starred question in the Lok Sabha, the lower house of the Indian Parliament. The estimates suggest that India will not only drive a significant portion of global oil demand growth but also contribute about 8% of the growth in natural gas demand during the same period. These projections are based on the country’s rapidly growing economy, increasing population, and rising energy consumption patterns.
India’s energy demand has been on an upward trajectory, driven by rapid urbanization, industrialization, and a growing middle class. The country’s oil demand has been rising steadily, with the transport sector being the primary driver of this growth. The increasing demand for petroleum products, such as gasoline, diesel, and jet fuel, has put pressure on the country’s refineries and import infrastructure. To meet this growing demand, India has been relying heavily on imported crude oil, which has significant implications for the country’s trade deficit and energy security.
The government’s estimates of India’s contribution to global oil demand growth are in line with projections made by international energy agencies, such as the International Energy Agency (IEA). The IEA has consistently highlighted India’s growing importance in the global energy market, with the country expected to become the world’s third-largest energy consumer by 2030. The agency has also emphasized the need for India to diversify its energy mix, improve energy efficiency, and enhance domestic production to reduce its dependence on imported fuels.
To address the challenges posed by rising energy demand, the Indian government has been taking steps to enhance domestic exploration and production. The government has introduced several policies and initiatives aimed at increasing oil and gas production, including the Hydrocarbon Exploration and Licensing Policy (HELP) and the Discovered Small Fields (DSF) policy. These initiatives have led to an increase in the number of oil and gas blocks being explored and developed, with several major discoveries being made in recent years.
The government has also been promoting the use of alternative fuels, such as renewable energy, biofuels, and electric vehicles, to reduce the country’s dependence on fossil fuels. India has set ambitious targets for the adoption of electric vehicles, with the aim of having 30% of new vehicle sales being electric by 2030. The government has also introduced policies to promote the use of biofuels, such as ethanol and biodiesel, to reduce the country’s reliance on imported fuels.
In conclusion, India’s growing energy demand and its expected contribution to global oil demand growth pose significant challenges and opportunities for the country. While the government’s estimates highlight the need for India to enhance its domestic exploration and production capabilities, they also underscore the importance of promoting alternative fuels and improving energy efficiency. As the world’s energy landscape continues to evolve, India’s role in shaping the future of global energy demand will only continue to grow.
The Indian government’s efforts to promote domestic exploration and production, along with its initiatives to promote alternative fuels and improve energy efficiency, will be crucial in determining the country’s energy future. As the world’s third-largest energy consumer, India has a significant opportunity to shape the global energy market and promote sustainable energy practices. With the right policies and initiatives in place, India can reduce its dependence on imported fuels, improve its energy security, and contribute to a more sustainable energy future.
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