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 poised to account for over 40% of the global increase in oil demand between 2024 and 2035. This staggering figure 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 projections by international energy agencies and underscore the country’s rising energy needs, driven by rapid economic growth, urbanization, and industrialization.
India’s energy consumption has been rising steadily over the years, driven by the country’s growing economy and increasing demand for transportation, industrial, and household energy. The country’s oil demand, in particular, has been growing at a rapid pace, with the Indian government estimating that oil demand will increase from approximately 5 million barrels per day in 2022 to over 7 million barrels per day by 2035. This represents a growth rate of over 40%, which is significantly higher than the global average.
The Indian government has recognized the need to enhance domestic exploration and production to meet the country’s growing energy needs. The government has implemented several policies and initiatives aimed at increasing domestic oil and gas production, including the introduction of the Hydrocarbon Exploration and Licensing Policy (HELP) and the Discovered Small Fields (DSF) policy. These policies aim to attract investment, improve efficiency, and increase transparency in the upstream oil and gas sector.
In addition to these initiatives, the government has also announced plans to increase investment in the energy sector, including the development of new oil and gas fields, the construction of new refineries, and the expansion of existing infrastructure. The government has also set a target to reduce the country’s dependence on imported oil and gas, which currently accounts for over 80% of the country’s energy needs.
The growth in India’s energy demand is not limited to oil; the country’s natural gas demand is also expected to rise significantly over the next decade. Natural gas is seen as a cleaner and more environmentally friendly alternative to oil and coal, and the Indian government has set a target to increase the share of natural gas in the country’s energy mix to 15% by 2030.
To meet this target, the government has announced plans to increase investment in the natural gas sector, including the development of new gas fields, the construction of new pipelines, and the expansion of existing infrastructure. The government has also introduced policies aimed at promoting the use of natural gas in the transportation sector, including the introduction of compressed natural gas (CNG) and liquefied natural gas (LNG) as alternative fuels.
In conclusion, India’s energy demand is poised to play a significant role in shaping the global energy landscape over the next decade. The country’s growing oil and natural gas demand presents both opportunities and challenges, and the government’s initiatives to enhance domestic exploration and production are crucial to meeting the country’s energy needs. As the world’s third-largest energy consumer, India’s energy policies will have a significant impact on global energy markets, and the country’s growth will be closely watched by energy investors, producers, and consumers around the world.
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