In wake of weak crude prices and subdued demand, India
now looks to highlight that demand security will be equally important for oil
producing companies. The country’s oil
minister Dharmendra Pradhan
once again pushed for ‘responsible pricing’ at the Petroleum
Congress in Istanbul.
“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 security of supplies
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 energy investment
since 2014 has not yet raised major concerns about near-term energy
supply adequacy, which have been eased by excess capacity in global fossil fuel
supply and electricity
generation in some markets, as well as cost deflation,” International Energy
Agency (IEA) said in its World Energy Investment
Report for 2017. The report further highlighted a 9 per cent increase in spending on energy
efficiency and a 6 per cent increase in electricity
networks were more than offset by a continuing drop in investment
in upstream oil
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 India
will drive the demand for energy
both in terms of electricity, cooking and transportation
fuel. Giving example of India
he said that 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,” 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 Petroleum
Congress in Istanbul.
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. China
combined contribute two-thirds of the non-OECD
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,”IEA
said in its oil
market report in June this year.
minister also launched an event on India’s Hydrocarbon Exploration & Licensing Policy (HELP) in order to promote the upcoming oil
& gas bidding rounds in India.
The ministry has been promoting the policy with domestic and foreign potential bidders in order to improve investment
in upstream facilities in India.