India to account for over 40% of global oil demand growth by 2035
The world’s energy landscape is undergoing a significant transformation, and India is set to play a crucial role in shaping the future of global energy demand. 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. This staggering figure highlights the country’s growing energy needs and its potential to drive global energy trends.
The data, shared in response to a starred question in the Lok Sabha, also reveals that India will contribute around 8% to the growth in natural gas demand during the same period. These estimates underscore the government’s efforts to enhance domestic exploration and production, which are critical to meeting the country’s burgeoning energy requirements.
The rapid growth in oil demand is primarily driven by India’s expanding economy, increasing population, and rising standards of living. As the country continues to urbanize and industrialize, its energy needs are expected to soar, making it one of the largest energy consumers in the world. The International Energy Agency (IEA) has already predicted that India will surpass China as the largest growth market for energy by 2025.
The government’s focus on enhancing domestic exploration and production is a step in the right direction. By increasing domestic production, India can reduce its reliance on imported oil and gas, which currently accounts for a significant portion of its energy mix. This not only helps to mitigate the impact of price volatility but also enhances the country’s energy security.
To achieve this goal, the government has implemented various policies and initiatives aimed at promoting exploration and production activities. These include the introduction of the Hydrocarbon Exploration and Licensing Policy (HELP), which provides a uniform licensing framework for both conventional and unconventional hydrocarbon resources. Additionally, the government has launched the Discovered Small Field (DSF) policy, which aims to monetize small and marginal fields that were previously unviable due to high operational costs.
Furthermore, the government has also taken steps to improve the investment climate in the energy sector. The introduction of the Open Acreage Licensing Policy (OALP) has provided investors with greater flexibility to choose their own exploration blocks, rather than being limited to pre-designated areas. This has led to a significant increase in investment in the sector, with several major international oil companies (IOCs) expressing interest in exploring and producing oil and gas in India.
However, despite these efforts, India still faces significant challenges in meeting its energy demands. The country’s energy infrastructure is still in the process of development, and there are concerns about the environmental impact of increased energy production and consumption. Moreover, the global energy landscape is becoming increasingly complex, with rising concerns about climate change, energy security, and sustainability.
To address these challenges, the government will need to adopt a multi-faceted approach that balances the country’s energy needs with environmental and social considerations. This includes investing in renewable energy sources, such as solar and wind power, which can help reduce the country’s reliance on fossil fuels and mitigate the impact of climate change. Additionally, the government will need to implement policies and regulations that promote energy efficiency, reduce waste, and encourage sustainable consumption practices.
In conclusion, India’s energy demands are set to play a significant role in shaping the global energy landscape over the next decade. With the country expected to account for over 40% of global oil demand growth by 2035, the government’s efforts to enhance domestic exploration and production are critical to meeting these needs. While there are challenges to be addressed, the government’s policies and initiatives provide a solid foundation for promoting investment, improving energy security, and reducing the country’s environmental footprint.
As the world’s energy landscape continues to evolve, India’s energy story will be one to watch. With its growing economy, expanding population, and rising energy demands, the country is poised to play a significant role in shaping the future of global energy. As the government continues to navigate the complex energy landscape, it is essential to prioritize sustainability, energy security, and environmental considerations to ensure that India’s energy needs are met in a responsible and sustainable manner.
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