India’s oil demand will expand by 120% by 2035, according to BP Energy Outlook and will leave China behind. The data suggest that the demand for oil in India will grow exponentially in coming years and the country will bring largest growth market for oil and oil-related products by 2035. Currently, India imports 80% of its total oil requirements.
The UK Oil analyst also said that oil will become a dominant fuel source with a 93% market share in 2035. While it estimates India’s oil demand to grow by 120%, India’s oil imports will grow by 165% and will account for 56% of the increase in total energy imports.
Meanwhile, a report by Thomson Reuters Oil Research & Forecasts said that India’s imports in January to a record high of 4.93 million barrels of oil per day (bpd) to meet the rising domestic demand. India is world’s third largest importer of crude oil in the world, and its January bill surged 42.6% to $11.66 billion compared to a year ago.
The January oil import was 13.6% higher than December, which analysts say is garnering the attention of Organization of the Petroleum Exporting Countries (OPEC). While OPEC and non-OPEC members have vowed for oil production cuts to lift the prices, Iraq is shifting its focus to India as a big market.
In a written reply to Lok Sabha, oil minister Dharmendra Pradhan said that Iraq dethroned Saudi Arabia as India’s top oil source in the April-October period of 2017-18 for the first time with oil share of 25.8 million metric ton of the total import. While Saudi Arabia slid to the second spot with 21.9 million metric ton, Iran continued at the third spot.
Meanwhile, India is also exploring the United States as the oil producer. The first shipment of crude oil from the US worth $100 million reached the Indian shores last year. 42.6 percent from a year ago to $11.66 billion.