India to account for over 40% of global oil demand growth by 2035
The world’s energy landscape is undergoing a significant transformation, and India is poised to play a crucial role in shaping the future of global energy demand. According to recent estimates shared by the Indian government, the country is expected to account for over 40% of the global increase in oil demand between 2024 and 2035. This projection is based on data presented by Minister of Petroleum and Natural Gas Hardeep Singh Puri in response to a starred question in the Lok Sabha.
The data highlights the rapid growth of India’s energy needs, driven by its large and growing population, urbanization, and industrialization. As the country continues to experience rapid economic growth, its energy consumption is expected to rise significantly, with oil and natural gas being key components of its energy mix. In fact, India is also expected to account for about 8% of the growth in natural gas demand between 2024 and 2035, underscoring the country’s increasing reliance on cleaner and more efficient energy sources.
The government’s estimates are significant, as they underscore the importance of India’s role in global energy markets. With the country’s energy demand expected to grow at a rapid pace, it will have a major impact on global energy trends, influencing prices, production, and investment decisions. The government’s projections also highlight the need for India to enhance its domestic exploration and production capabilities, to reduce its dependence on imported energy sources and mitigate the impact of price volatility on its economy.
To achieve this goal, the government has announced plans to increase domestic oil and gas production, through a combination of policy reforms, investment incentives, and technological advancements. The government has also launched several initiatives aimed at promoting energy efficiency, renewable energy, and sustainable development, to reduce the country’s carbon footprint and mitigate the impact of climate change.
The growth in India’s energy demand is driven by several factors, including its rapid urbanization, industrialization, and economic growth. The country’s population is expected to continue growing, with an estimated 1.4 billion people by 2025, and its urban population is projected to increase from 377 million in 2015 to 583 million by 2030. This rapid urbanization will drive up energy demand, as cities require more energy to power homes, industries, and transportation systems.
India’s industrial sector is also expected to play a major role in driving energy demand, as the country seeks to become a major manufacturing hub. The government’s “Make in India” initiative, launched in 2014, aims to promote domestic manufacturing and attract foreign investment, which is expected to drive up energy demand. The country’s transport sector, which is dominated by diesel and petrol-powered vehicles, will also continue to drive up energy demand, although the government is promoting the adoption of electric vehicles and alternative fuels to reduce dependence on fossil fuels.
The government’s estimates of India’s energy demand growth are in line with projections made by international energy agencies, such as the International Energy Agency (IEA). The IEA has forecast that India’s energy demand will grow by 3.5% per annum between 2020 and 2030, driven by its rapid economic growth and urbanization. The agency has also highlighted the need for India to diversify its energy mix, by promoting the adoption of renewable energy sources, such as solar and wind power, and improving energy efficiency.
In conclusion, India’s energy demand is expected to grow significantly over the next decade, driven by its rapid economic growth, urbanization, and industrialization. The government’s estimates, which suggest that the country will account for over 40% of the global increase in oil demand between 2024 and 2035, underscore the importance of India’s role in global energy markets. To meet its growing energy needs, the government must enhance domestic exploration and production, promote energy efficiency, and invest in renewable energy sources, to reduce its dependence on imported energy sources and mitigate the impact of climate change.
About the Author
