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, 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 staggering projection highlights the country’s growing energy needs, driven by its rapid economic growth, urbanization, and industrialization. As the world’s third-largest consumer of oil, India’s energy demand is expected to continue to rise, driven by the increasing demand for transportation, industrial, and residential energy. The government’s estimates suggest that the country’s oil demand will grow at a rate of 3.5% per annum, outpacing the global average of 1.5%.
The data, shared by the Minister in response to a starred question in the Lok Sabha, underscores the importance of enhancing domestic exploration and production to meet the country’s growing energy needs. The government has set an ambitious target to reduce the country’s dependence on imported oil by 10% by 2025. To achieve this goal, the government is focusing on increasing domestic oil and gas production, improving energy efficiency, and promoting the use of alternative energy sources.
India’s energy sector has undergone significant reforms in recent years, aimed at increasing production, improving efficiency, and promoting investment in the sector. The government has introduced policies such as the Hydrocarbon Exploration and Licensing Policy (HELP) and the Discovered Small Fields (DSF) policy, aimed at increasing domestic exploration and production. Additionally, the government has announced plans to invest over $20 billion in the development of new oil and gas fields, as well as in the expansion of existing fields.
The growth in India’s oil demand is expected to be driven by the transportation sector, which accounts for over 50% of the country’s oil consumption. The increasing demand for passenger vehicles, commercial vehicles, and two-wheelers is expected to drive the growth in oil demand. Additionally, the government’s plans to promote the use of liquefied natural gas (LNG) as a fuel for transportation, particularly for long-haul trucking, is expected to drive the growth in natural gas demand.
The government’s estimates also highlight the importance of increasing domestic gas production to meet the country’s growing energy needs. India’s gas demand is expected to grow at a rate of 4.5% per annum, driven by the increasing demand from the power, industrial, and transportation sectors. The government has set a target to increase the share of natural gas in the country’s energy mix to 15% by 2030, up from the current level of around 6%.
To achieve this goal, the government is focusing on increasing domestic gas production, as well as promoting the use of imported LNG. The government has announced plans to invest over $10 billion in the development of new gas fields, as well as in the expansion of existing fields. Additionally, the government has introduced policies such as the Gas Grid project, aimed at promoting the use of natural gas as a fuel for transportation and industry.
In conclusion, India’s energy sector is expected to play a crucial role in shaping the global energy market in the coming years. The country’s growing energy needs, driven by its rapid economic growth, urbanization, and industrialization, are expected to drive the growth in oil and gas demand. The government’s estimates suggest 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. To meet these growing energy needs, the government is focusing on increasing domestic exploration and production, improving energy efficiency, and promoting the use of alternative energy sources.
As the world’s energy landscape continues to evolve, India’s energy sector is expected to play an increasingly important role in shaping the global energy market. The government’s policies and initiatives aimed at promoting domestic exploration and production, improving energy efficiency, and promoting the use of alternative energy sources are expected to drive the growth in the sector. As the country continues to grow and develop, its energy needs are expected to continue to rise, driving the growth in oil and gas demand.
The government’s estimates and policies highlight the importance of increasing domestic energy production to meet the country’s growing energy needs. The development of new oil and gas fields, as well as the expansion of existing fields, is expected to drive the growth in domestic production. Additionally, the promotion of alternative energy sources, such as solar and wind power, is expected to play an increasingly important role in shaping the country’s energy mix.
In the coming years, India’s energy sector is expected to continue to evolve, driven by the growing demand for energy and the government’s policies and initiatives aimed at promoting domestic exploration and production, improving energy efficiency, and promoting the use of alternative energy sources. As the country continues to grow and develop, its energy needs are expected to continue to rise, driving the growth in oil and gas demand.
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