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 poised to play a crucial role in shaping the future of global energy consumption. According to recent estimates shared by the Minister of Petroleum and Natural Gas, Hardeep Singh Puri, 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 highlights the country’s rising energy needs and its potential to influence global energy markets.
The data, which was shared in response to a starred question in the Lok Sabha, underscores the government’s efforts to enhance domestic exploration and production. As India’s economy continues to grow, its energy requirements are expected to surge, driving up demand for fossil fuels. The country’s oil demand is projected to increase significantly, with India accounting for more than 40% of the global growth in oil consumption. This trend is expected to have far-reaching implications for the global energy industry, as India’s rising demand will likely impact oil prices, production, and trade.
The government’s estimates also suggest that India will play a significant role in driving growth in natural gas demand. With the country aiming to increase the share of natural gas in its energy mix, India is expected to account for about 8% of the global growth in natural gas demand between 2024 and 2035. This shift towards natural gas is in line with the government’s objective of reducing the country’s dependence on fossil fuels and promoting cleaner sources of energy.
To meet its growing energy needs, the Indian government is focusing on enhancing domestic exploration and production. The government has implemented various policies and initiatives aimed at increasing oil and gas production, including the introduction of the Hydrocarbon Exploration and Licensing Policy (HELP) and the Discovered Small Fields (DSF) policy. These initiatives aim to attract investment, enhance transparency, and streamline the exploration and production process.
The government’s efforts to boost domestic production are also driven by the need to reduce India’s dependence on imported fossil fuels. The country currently imports a significant portion of its oil and gas requirements, which not only burdens the trade deficit but also exposes the economy to price volatility. By increasing domestic production, the government aims to reduce the country’s reliance on imports and enhance energy security.
The projected growth in India’s oil and gas demand also presents opportunities for foreign investors and companies. As the country seeks to expand its energy infrastructure and increase production, there will be a growing need for investment, technology, and expertise. International companies can play a crucial role in helping India achieve its energy goals, whether through partnerships, joint ventures, or direct investment.
However, the growth in energy demand also poses significant challenges for India. The country will need to balance its energy requirements with the need to reduce greenhouse gas emissions and promote sustainable development. As the world transitions towards a low-carbon economy, India will need to navigate the complex landscape of energy policy, environmental concerns, and economic growth.
In conclusion, India’s projected growth in oil and gas demand highlights the country’s rising energy needs and its potential to influence global energy markets. The government’s efforts to enhance domestic exploration and production, reduce dependence on imports, and promote cleaner sources of energy will be critical in shaping the country’s energy future. As India continues to grow and evolve, its energy requirements will play a significant role in determining the trajectory of the global energy industry.
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