The future of Oil & Gas’s supply and demand scenario may remain uncertain in the short and medium future, the industry at a delicate cross-road: Dharmendra Pradhan
Dharmendra Pradha, Minister for Petroleum and Natural Gas, while chairing the plenary session on supply and demand challenges for Oil, Gas and products at the 22nd World Petroleum Congress (WPC) in Istanbul said the world is at a stage like never before, where the future of oil and gas’s supply and demand may remain uncertain in the short and medium term.
He added that India is the only country where demand for oil and gas will be robust for the next decade.
While speaking at the plenary session Pradhan highlighted how disruptive innovation will impact the demand of oil and gas in the world and how renewable has the potential to replace conventional energy sources.
“Disruptive innovation will impact the demand of oil and gas in the world. Falling cost of renewable in general and falling cost of solar in particular. Most of Asia and Africa are now discovering solar tariffs at less than four cents per kilowatt, significantly cheaper than conventional power,” Pradhan said.
“For India which is leading the solar and renewable revolution, we need to realise that the oil industry is at a delicate cross-road, where higher crude prices will give a further push to renewable. We are told that there is going to be a breakthrough in battery technology and renewable source may take over conventional source in the near future,” Dharmendra Pradhan added.
Pradhan also emphasised that the growth in e-vehicles may also have a far reaching impact on the world’s oil and gas demand.
“The rate at which e-vehicles will be adopted will depend on a lot of factors like the price of power, storage, utility network factors etc… but if estimates are to be believed, it may make considerable impact on the oil and gas sector, ” Pradhan said.
Pradhan is representing India at the WPC and has conducted several bi-lateral meetings with ministers and presided over plenary sessions.
The Minister will also launch an event on Hydrocarbon Exploration and Licensing Policy (HELP) as a part of the process of promoting the upcoming oil and gas bidding rounds in India.