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, particularly India. According to recent estimates shared by the Indian government, the country is expected to play a crucial 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, urbanization, and industrialization, which are driving up the country’s energy needs. As the world’s third-largest consumer of oil, India’s energy demand is expected to continue to rise, driven by the growing transportation sector, increasing industrial activity, and rising household incomes. The country’s oil demand is projected to increase from approximately 5 million barrels per day (mb/d) in 2022 to over 7 mb/d by 2035, representing a growth of over 40% during this period.
The Indian government has recognized the importance of meeting this growing energy demand and has set ambitious targets to enhance domestic exploration and production. The government aims to increase the share of natural gas in the country’s energy mix to 15% by 2030, up from around 6% currently. To achieve this goal, the government is promoting the development of new gas fields, improving the efficiency of existing fields, and investing in gas infrastructure, including pipelines and liquefied natural gas (LNG) terminals.
In addition to increasing domestic production, the government is also exploring new sources of energy to meet the country’s growing demand. India has set a target of generating 40% of its electricity from non-fossil fuels by 2030, up from around 22% currently. The country is investing heavily in renewable energy sources, such as solar and wind power, and is also promoting the use of biofuels and other alternative energy sources.
The growth in India’s energy demand is expected to have significant implications for the global energy market. As the country’s oil demand increases, it will drive up global oil prices, making it more challenging for other countries to meet their energy needs. Furthermore, India’s increasing reliance on imported oil will also pose significant challenges for the country’s trade balance and energy security.
To mitigate these risks, the Indian government is exploring new ways to diversify its energy mix and reduce its dependence on imported oil. The government is promoting the use of electric vehicles, improving the efficiency of existing vehicles, and investing in alternative energy sources, such as hydrogen fuel cells. The government is also exploring new partnerships with other countries to secure stable and reliable energy supplies.
In conclusion, India’s energy demand is expected to play a significant role in shaping the global energy market in the coming years. With the country 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, the Indian government is taking steps to enhance domestic exploration and production, promote the use of alternative energy sources, and diversify its energy mix. As the world’s energy landscape continues to evolve, India’s growing energy demand will pose significant challenges and opportunities for the country and the global energy market.
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