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 expected 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 will account for over 40% of the global increase in oil demand between 2024 and 2035. Additionally, the country is expected to contribute around 8% to the growth in natural gas demand during the same period.
This projection is a testament to India’s rapid economic growth and its increasing reliance on energy to fuel its development. As the country continues to urbanize and industrialize, 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 rate that is significantly higher than the global average, making it one of the largest contributors to global oil demand growth.
The implications of this trend are far-reaching. On the one hand, it highlights the need for India to enhance its domestic exploration and production (E&P) of oil and natural gas. The government has already taken steps in this direction, with the aim of reducing the country’s dependence on imported fossil fuels. The recent discoveries of oil and gas reserves in various parts of the country, including the Krishna-Godavari basin and the Mumbai offshore, are a positive development in this regard.
On the other hand, the projected growth in oil demand also underscores the need for India to diversify its energy mix and promote the use of cleaner fuels. The country has set ambitious targets for renewable energy, with a goal of generating 40% of its electricity from non-fossil fuels by 2030. However, the pace of transition to renewable energy will need to accelerate significantly if India is to meet its climate commitments and reduce its dependence on fossil fuels.
The government’s estimates also highlight the importance of investing in energy infrastructure, including refineries, pipelines, and storage facilities. As oil demand grows, the need for efficient and reliable energy infrastructure will become increasingly critical. The government has already announced plans to invest in various energy infrastructure projects, including the development of new refineries and the expansion of existing ones.
In addition to investing in energy infrastructure, the government will also need to promote energy efficiency and conservation. This can be achieved through a range of measures, including the implementation of fuel-efficient standards for vehicles, the promotion of public transport, and the use of energy-efficient appliances. By promoting energy efficiency and conservation, India can reduce its energy consumption and minimize the environmental impact of its growing energy needs.
The growth in oil demand is also expected to have significant implications for India’s trade balance. As the country’s oil imports increase, its trade deficit is likely to widen, putting pressure on the rupee and the overall economy. To mitigate this risk, the government will need to take steps to promote domestic production of oil and natural gas, as well as to diversify its energy mix.
In conclusion, the projected growth in oil demand in India is a significant trend that will have far-reaching implications for the country’s energy sector, economy, and environment. While the government’s estimates highlight the need for India to enhance its domestic E&P of oil and natural gas, they also underscore the importance of promoting energy efficiency and conservation, investing in energy infrastructure, and diversifying the country’s energy mix. By taking a comprehensive and integrated approach to energy policy, India can meet its growing energy needs while minimizing the environmental impact and promoting sustainable development.
About the Author
