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 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. Additionally, the country is also projected to contribute about 8% of the growth in natural gas demand during the same period.
This staggering projection underscores India’s rapidly growing economy, which is driving up energy demand across various sectors, including transportation, industry, and residential. As the country continues to urbanize and industrialize, its energy needs are expected to rise significantly, making it a critical player in the global energy market.
The government’s estimates are based on the country’s robust economic growth, which is expected to average around 7-8% per annum over the next decade. This growth will be driven by various factors, including a growing middle class, increasing urbanization, and a rising demand for consumer goods and services. As a result, the country’s energy demand is expected to rise exponentially, with oil and natural gas being the primary drivers of this growth.
The Minister’s statement highlights the government’s focus on enhancing domestic exploration and production to meet the growing energy demands. The government has already taken several initiatives to boost domestic oil and gas production, including the introduction of new exploration and production policies, such as the Hydrocarbon Exploration and Licensing Policy (HELP) and the Discovered Small Fields (DSF) policy.
These policies aim to attract investment in the upstream sector, improve the ease of doing business, and enhance the overall investment climate in the country. The government has also announced plans to invest heavily in the development of new oil and gas fields, as well as the expansion of existing ones, to increase domestic production and reduce dependence on imports.
The significance of India’s growing energy demand cannot be overstated. As the country continues to drive global energy demand, it will play a critical role in shaping the future of the global energy market. The government’s focus on domestic exploration and production will not only help reduce the country’s dependence on imports but also create new opportunities for investment, job creation, and economic growth.
However, the challenge of meeting India’s growing energy demand is not without its hurdles. The country will need to navigate complex geopolitical relationships, manage the impact of climate change, and balance the need for economic growth with the requirement to reduce greenhouse gas emissions.
To address these challenges, the government will need to adopt a multi-pronged approach that includes increasing domestic production, improving energy efficiency, and promoting the use of renewable energy sources. The government has already set ambitious targets for the adoption of renewable energy, including a goal of achieving 40% of its installed power capacity from non-fossil fuels by 2030.
In conclusion, India’s projected contribution to global oil demand growth over the next decade is a testament to the country’s rapid economic growth and rising energy needs. As the government works to enhance domestic exploration and production, it will be critical to balance the need for economic growth with the requirement to reduce greenhouse gas emissions and promote sustainable development.
The future of India’s energy sector is complex and multifaceted, with many challenges and opportunities ahead. However, with the right policies and investments in place, the country can navigate the transition to a more sustainable energy future, while also driving economic growth and development.
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