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. According to recent estimates shared by the Indian government, the country is set to play a pivotal role in shaping the global energy market in the coming years. In a response to a starred question in the Lok Sabha, Minister of Petroleum and Natural Gas Hardeep Singh Puri revealed that India will account for over 40% of the global increase in oil demand and about 8% of the growth in natural gas demand between 2024 and 2035.
This projection is a testament to India’s rapid economic growth and its increasing dependence on energy to fuel its development. As the country’s economy continues to expand, its energy needs are expected to rise significantly, driving up demand for oil and natural gas. The government’s estimates suggest that India’s oil demand will grow at a rapid pace, accounting for over 40% of the global increase in oil demand between 2024 and 2035. This is a significant increase from the current levels and underscores the importance of India in the global energy market.
The growth in oil demand is expected to be driven by the increasing use of vehicles, industrial activity, and other economic sectors. As the country’s middle class continues to grow, the demand for personal vehicles, air travel, and other energy-intensive activities is expected to rise, leading to an increase in oil consumption. Additionally, the government’s initiatives to promote economic growth and development, such as the “Make in India” campaign, are also expected to drive up energy demand.
In addition to oil, India is also expected to play a significant role in the growth of natural gas demand. According to the government’s estimates, the country will account for about 8% of the growth in natural gas demand between 2024 and 2035. This is a relatively smaller share compared to oil, but still significant, given the country’s growing emphasis on cleaner sources of energy. The government has set a target to increase the share of natural gas in the country’s energy mix to 15% by 2030, up from the current level of around 6%.
To meet the growing demand for energy, the government is aiming to enhance domestic exploration and production. The country has significant reserves of oil and natural gas, but production has been declining in recent years due to various factors, including aging fields and lack of investment. The government has launched several initiatives to boost domestic production, including the introduction of new policies and regulations to attract investment in the sector.
One of the key initiatives is the Hydrocarbon Exploration and Licensing Policy (HELP), which aims to simplify the process of exploring and producing oil and natural gas. The policy allows for easier access to data, reduced regulatory hurdles, and more flexible terms for investors. The government has also launched the Discovered Small Fields (DSF) policy, which aims to auction off small and marginal fields to private players to boost production.
In addition to these initiatives, the government is also focusing on increasing the use of renewable energy sources, such as solar and wind power. The country has set a target to generate 40% of its electricity from non-fossil fuels by 2030, up from the current level of around 20%. The government has launched several schemes to promote the use of renewable energy, including the Solar Park scheme and the Wind-Solar Hybrid Policy.
In conclusion, India is set to play a significant role in shaping the global energy market in the coming years. The country’s rapid economic growth and increasing dependence on energy are expected to drive up demand for oil and natural gas, with India accounting for over 40% of the global increase in oil demand and about 8% of the growth in natural gas demand between 2024 and 2035. To meet this growing demand, the government is aiming to enhance domestic exploration and production, while also promoting the use of renewable energy sources.
As the country continues to grow and develop, its energy needs will become increasingly important. The government’s initiatives to boost domestic production and promote renewable energy are critical to meeting these needs and reducing the country’s dependence on imported energy. With the right policies and investments in place, India can ensure a sustainable and secure energy future, while also contributing to the global effort to reduce greenhouse gas emissions and mitigate the impacts of climate change.
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