India’s end-use energy consumption is set to grow 90% by 2050 — one of the fastest growth rates in the world — said Igor Sechin, chief executive officer of Rosneft, Russia’s biggest oil producer.
Addressing a gathering at the Energy Panel of the 27th St. Petersburg International Economic Forum, Sechin further highlighted the rapidly growing Indian economy and noted that the country is projected to continue its strong economic momentum.
“Over the next five years, India is projected to continue its strong economic momentum and become one of the top three largest economies in the world with a GDP of $5 trillion, and by 2050 will overtake the US in terms of the size of the economy,” he said.
The CEO further stated that OPEC+ agreement seems to have little impact on the oil market, as observed by the stockpiling of reserves by both Western and West Asian companies, potentially anticipating significant market changes.
“These ‘phantom barrels’ could offset the effects of voluntary production cuts by major OPEC members, evidenced by market quotations declining after recent ministerial decisions,” he said.
Sechin also pointed out that the looming uncertainty surrounding the upcoming US presidential elections, where public sentiment is influenced, among other things, by fluctuations in gasoline prices, implies a heightened level of market volatility.
The possibility of regulatory changes, he noted, underscores emerging risks, prompting major players to explore alternative strategies.
According to the Rosneft CEO, developing countries will be the main drivers of oil consumption in the coming decades. “By 2030, demand growth in this group of countries is expected to account for 95% of global consumption growth in aggregate,” Sechin said. “The highest growth in oil demand is expected in Asian countries, which are Russia’s main trading partners.”
Even as the world is moving towards adoption of renewable energy, Sechin said that the consumption of oil, gas, and coal has continued to rise. The company has recently signed a term agreement with India’s state-owned Indian Oil to increase oil supplies. Indian companies — ONGC Videsh Ltd., Oil India Limited, Indian Oil Corporation, and Bharat Petroresources — have been owners of 49.9% of Rosneft’s subsidiary JSC Vankorneft since 2016.
