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Demand security equally important for oil firms: Pradhan in Istanbul

Says rising middle-class in emerging Asian countries will drive demand for energy sector

Amritha Pillay  |  Mumbai 

Minister of State for Petroleum and Natural Gas Dharmendra Pradhan
Minister of State for Petroleum and Natural Gas Dharmendra Pradhan

In wake of weak crude prices and subdued demand, now looks to highlight that demand security will be equally important for producing companies. The country’s minister once again pushed for ‘responsible pricing’ at the Congress in
“He underlined that in today’s oversupplied market, it is important for producers to understand the perspective of consumers and demand centres and the changes that have taken place in these centres. As the is an important factor for consumers, security of demand is equally important for producers,” said a statement from the Press Information Bureau (PIB) on Wednesday.
“A 17 per cent decline in global since 2014 has not yet raised major concerns about near-term supply adequacy, which have been eased by excess capacity in global supply and generation in some markets, as well as cost deflation,” International Agency (IEA) said in its World Report for 2017. The report further highlighted a 9 per cent increase in spending on efficiency and a 6 per cent increase in networks were more than offset by a continuing drop in in upstream and gas, which fell by over a quarter in 2016.
“Addressing the plenary session, Pradhan said that rising middle-class of emerging Asian countries like will drive the demand for both in terms of electricity, cooking and fuel. Giving example of he said that the consumption is expected to grow to almost double by 2035. is the only country where the demand will continue to rise for more than a decade,” the PIB statement said. Pradhan was the chairperson for the Ministerial Session and Plenary Session on Supply and Demand Challenges for Oil, Gas and Products at 22nd World Congress in
“Emerging account for almost all of the forecast global increase in demand in 2018, as demographic factors are supportive of rapid growth from a base of far lower per-capita consumption levels. and combined contribute two-thirds of the non-Asian gain. Furthermore, so important are these two countries to global demand that they will contribute 44 per cent of the global growth forecast in 2018,”said in its market report in June this year.
The minister also launched an event on India’s Hydrocarbon Exploration & Licensing Policy (HELP) in order to promote the upcoming & gas bidding rounds in The ministry has been promoting the policy with domestic and foreign potential bidders in order to improve in upstream facilities in

First Published: Wed, July 12 2017. 14:46 IST