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 growing demands of emerging economies. India, in particular, is set to play a crucial role in shaping the global energy market, with its oil demand expected to surge 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. This staggering projection underscores the country’s rapidly growing energy needs and its increasing reliance on oil to fuel its economic growth.
The data, which was shared in response to a starred question in the Lok Sabha, also reveals that India will be responsible for about 8% of the growth in natural gas demand during the same period. These estimates are a testament to the country’s rising energy consumption, driven by its expanding economy, growing population, and increasing urbanization. As the world’s third-largest energy consumer, India’s energy demands are expected to continue rising, with oil and natural gas being the primary drivers of this growth.
The Indian government has acknowledged the need to enhance domestic exploration and production to meet the country’s growing energy demands. The government has set ambitious targets to increase domestic oil and gas production, with a focus on reducing dependence on imports. This strategy is aimed at improving energy security, reducing the trade deficit, and promoting economic growth. To achieve these goals, the government has implemented various policies and initiatives, including the introduction of new exploration and production contracts, the development of new oil and gas fields, and the promotion of investment in the energy sector.
The growth in oil demand is expected to be driven by the transportation sector, which accounts for the largest share of oil consumption in India. The increasing demand for passenger vehicles, commercial vehicles, and aviation fuel is expected to drive oil demand, with the country’s vehicle population projected to grow significantly in the coming years. Additionally, the industrial sector, which includes industries such as petrochemicals, fertilizers, and power generation, will also contribute to the growth in oil demand.
The estimates shared by the Minister of Petroleum and Natural Gas also highlight the importance of natural gas in India’s energy mix. Natural gas is expected to play a crucial role in reducing the country’s dependence on oil and coal, with the government aiming to increase the share of natural gas in the energy mix to 15% by 2030. The growth in natural gas demand will be driven by the power generation, industrial, and transportation sectors, with the government promoting the use of liquefied natural gas (LNG) as a cleaner and more efficient fuel.
The Indian government’s efforts to enhance domestic exploration and production are critical to meeting the country’s growing energy demands. The government has introduced various policies and initiatives to promote investment in the energy sector, including the Hydrocarbon Exploration and Licensing Policy (HELP), which aims to simplify the process of awarding oil and gas blocks to private companies. The government has also introduced the Open Acreage Licensing Policy (OALP), which allows companies to bid for oil and gas blocks on a continuous basis.
In addition to these initiatives, the government has also promoted the use of alternative energy sources, such as solar and wind power, to reduce the country’s dependence on fossil fuels. The government has set ambitious targets to increase the share of renewable energy in the energy mix, with a focus on reducing greenhouse gas emissions and promoting sustainable development.
In conclusion, India’s oil demand is expected to surge in the coming years, with the country accounting for over 40% of the global increase in oil demand between 2024 and 2035. The government’s efforts to enhance domestic exploration and production, promote investment in the energy sector, and reduce dependence on imports are critical to meeting the country’s growing energy demands. As the world’s energy landscape continues to evolve, India’s role in shaping the global energy market will become increasingly important, with the country’s energy demands driving growth and investment in the sector.
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