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 Indian government, the country is expected to account for over 40% of the global increase in oil demand between 2024 and 2035. This staggering projection highlights India’s growing importance in the global energy market and underscores the need for the country to enhance its domestic exploration and production capabilities.
The data, which was shared by Minister of Petroleum and Natural Gas Hardeep Singh Puri in response to a starred question in the Lok Sabha, also reveals that India will account for about 8% of the growth in natural gas demand during the same period. These estimates are based on the government’s analysis of global energy trends and India’s rapidly growing economy, which is expected to drive up energy demand in the coming years.
The Indian government’s estimates are consistent with projections made by international energy agencies, which have consistently highlighted the country’s growing importance in the global energy market. According to the International Energy Agency (IEA), India will be the largest contributor to global energy demand growth between 2020 and 2025, accounting for about 25% of the increase in global energy consumption.
The government’s estimates also underscore the need for India to enhance its domestic exploration and production capabilities to meet the growing demand for energy. Currently, India relies heavily on imports to meet its energy needs, with about 80% of its crude oil requirements being met through imports. The government has set a target of reducing the country’s dependence on imports by 10% by 2025, which will require significant investments in domestic exploration and production.
To achieve this goal, the government has announced a series of initiatives aimed at enhancing domestic exploration and production. These include the introduction of new policies and regulations to encourage investment in the sector, as well as the allocation of additional funds for exploration and production activities. The government has also announced plans to conduct more frequent auctions of oil and gas blocks, which is expected to attract more investment in the sector.
The growth in energy demand is expected to be driven by a combination of factors, including rapid urbanization, industrialization, and economic growth. The Indian government has set ambitious targets for economic growth, aiming to become a $5 trillion economy by 2025. This will require significant investments in energy infrastructure, including power plants, transmission lines, and distribution networks.
The transportation sector is also expected to play a major role in driving up energy demand, with the number of vehicles on Indian roads expected to increase significantly in the coming years. The government has announced plans to promote the use of electric vehicles, which is expected to reduce the country’s dependence on fossil fuels and lower greenhouse gas emissions.
In addition to the growth in energy demand, the Indian government is also focusing on reducing the country’s carbon footprint and promoting the use of renewable energy sources. The government has set a target of generating 40% of the country’s electricity from non-fossil fuels by 2030, which will require significant investments in renewable energy sources such as solar and wind power.
In conclusion, the Indian government’s estimates of the country’s energy demand growth highlight the need for the country to enhance its domestic exploration and production capabilities. The government’s initiatives to promote investment in the sector and reduce the country’s dependence on imports are welcome steps, but more needs to be done to achieve the target of reducing imports by 10% by 2025. The growth in energy demand also underscores the need for the country to promote the use of renewable energy sources and reduce its carbon footprint.
As the world’s third-largest energy consumer, India has a critical role to play in shaping the future of global energy demand. The country’s energy policy will have significant implications not only for its own economy but also for the global energy market. As the country continues to grow and develop, it is essential that it balances its energy needs with its environmental and social responsibilities.
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