Addressing the ministerial session on ‘Current Economic Strategies in the Indian Oil and Gas Sector’ and a plenary session on ‘Supply and Demand Challenges for Oil, Gas and Products’ at the t the 22nd World Petroleum Congress here, Union Minister of State for Petroleum and Natural Gas Dharmendra Pradhan said Monday that India would be the only country for the next decade or more where the demand for energy would not subside, but continue to rise.
“Presently India’s per capita energy consumption is .55 tons of oil equivalents, which is far below the global average of 1.9 tons of oil equivalent. The energy consumption is expected to grow to almost double by 2035. India is the only country where the demand will continue to rise for more than a decade. Some part of the liquid fuel demand in the interim will shift towards the gas. There will be ample gas available throughout the world and increasing LNG trade will make natural gas a true global commodity like oil.” he said.
“Refineries in India have found way to import crude oil from the U.S. and Canada in cost effective ways. This last week, Indian Oil, the largest refinery in India ordered two million barrels crude from the East Coast of the USA. This stand is going to continue, giving more flexibility to Indian refineries in terms of their sourcing of crude oil,” he added.
He expressed his concern over the falling cost of renewable power and solar power, which he warned would affect the demand for oil and gas throughout the world.
“India is leading the solar and renewable revolution, but will need to realize that the oil industry is at a delicate crossroad and higher crude price will give a further push to the renewable. We are told that there is going to be breakthrough in battery technology and renewable source can magnificently and sustainably take over conventional energy source in near future.” Pradhan said.
Pradhan met with U S Secretary of State Rex Tillerson and energy ministers of other nations on the sidelines of the event on Monday.
In May, at a meeting of the Organization of the Petroleum Exporting Countries (OPEC), Pradhan had raised the issue that OPEC should work towards responsible pricing, which would allow major consuming countries to provide energy to the common people.
Further, in the sessions he stated the importance of market and said the producers need to understand the prospective of consumers and demand centers and change that have taken place in these demand centers.
During his visit, Pradhan will also launch an event on Hydrocarbon Exploration and Licensing Policy (HELP) as a part of promoting upcoming oil and gas bidding rounds in India.