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. This staggering projection highlights the country’s growing importance in the global energy sector.
The data, which was presented in response to a starred question in the Lok Sabha, also reveals that India will contribute around 8% of the growth in natural gas demand during the same period. These estimates are a testament to the rapid industrialization and urbanization that India is experiencing, which is driving up the demand for energy. As the country continues to grow and develop, its energy needs are likely to increase exponentially, making it a critical player in the global energy market.
The government’s estimates are based on a comprehensive analysis of the country’s energy requirements, taking into account factors such as population growth, economic development, and urbanization. The projections also reflect the government’s efforts to promote the use of cleaner fuels, such as natural gas, and to reduce the country’s dependence on imported energy sources.
The Minister of Petroleum and Natural Gas, Hardeep Singh Puri, emphasized the government’s commitment to enhancing domestic exploration and production to meet the growing energy demands. The government has implemented various policies and initiatives aimed at increasing the production of oil and gas, including the introduction of the Hydrocarbon Exploration and Licensing Policy (HELP) and the Discovered Small Fields (DSF) policy.
These initiatives have led to a significant increase in the number of oil and gas blocks being explored and developed in the country. The government has also encouraged private sector participation in the energy sector, which has resulted in increased investment and activity in the exploration and production of oil and gas.
The growth in oil demand is expected to be driven primarily by the transportation sector, which accounts for the largest share of oil consumption in India. The increasing demand for personal vehicles, as well as the growing need for freight and logistics, will continue to drive up the demand for oil. Additionally, the government’s plans to develop new infrastructure, such as roads and highways, will also contribute to the growth in oil demand.
On the other hand, the growth in natural gas demand is expected to be driven by the power and industrial sectors. The government has set ambitious targets for the use of natural gas in the power sector, with plans to increase the share of gas-based power generation to 10% of the total power generation capacity by 2025. The industrial sector, particularly the fertilizer and petrochemical industries, will also drive up the demand for natural gas.
The estimates shared by the Minister of Petroleum and Natural Gas highlight the significant opportunities and challenges that India faces in the energy sector. While the country’s growing energy demands present a significant challenge, they also offer opportunities for investment, innovation, and growth.
To meet the growing energy demands, the government will need to continue to promote policies and initiatives that encourage domestic exploration and production, as well as the use of cleaner fuels. The private sector will also play a critical role in meeting the country’s energy needs, through investment in exploration and production, as well as the development of new technologies and infrastructure.
In conclusion, the estimates shared by the Minister of Petroleum and Natural Gas highlight the significant role that India is expected to play in the global energy market in the coming years. With the country expected to account for over 40% of the global increase in oil demand and around 8% of the growth in natural gas demand, the government and private sector will need to work together to meet the growing energy demands. The opportunities and challenges presented by India’s growing energy needs will require a coordinated and sustained effort to promote domestic exploration and production, as well as the use of cleaner fuels.
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