India is predicted to surpass China as the largest driver of global oil demand, according to the International Energy Agency (IEA).
IEA’s Chief, Fatih Birol, made the announcement at a G20 event in New Delhi, citing the “rapidly growing” electrification of cars and buses in China as one of the reasons. Birol expressed hope that India, which he said has abundant renewable energy capacity, will “move closer [to China] in terms of electrification.”
“One of the reasons why we say this is that electrification of cars and buses in China is growing rapidly,” the IEA chief said. “I very much hope India will move closer in terms of electrification.”
The IEA’s oil market outlook report, released on the same day, indicates that about three-quarters of the 2022-2028 demand growth increase will come from Asia, with India surpassing China as the main source of growth by 2027.
The report notes that India’s oil consumption is expected to grow at an annual rate of 3.7% through 2026, compared to China’s 2.5%.
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India’s growing population, expanding economy, and rising middle class are driving its increasing demand for oil. However, India has set a target to achieve 450 GW of renewable energy capacity by 2030, which will help to reduce its reliance on fossil fuels.
The IEA’s report highlights the importance of India as a driver of global oil demand and the need for India to transition to cleaner energy sources. As India continues to pursue its renewable energy targets, it would be interesting to see how this impacts its demands for oil and its role in the global energy landscape.
Editor’s Note: The opinions expressed here by the authors are their own, not those of Impakter.com — In the Featured Photo: ONGC Oil and Gas Processing Platform, Bombay High, South Field, India, March
