India Becoming A Key Driver In Global Energy Demands With The Positive Growth In Oil & Gas Industry

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Team Industry Outlook | Wednesday, 29 January 2020

According to a research by RESEARCH AND MARKETS, major factors driving the growth of Indian Oil & Gas market is the increase in the demand from the transportation industry, modern developments of oil and gas exploration, production activities, and recovering prices. With advancements in technologies, innovations are further being witnessed that will provide robust infrastructure to bring required market growth for Oil & Gas Industry in India. Undoubtedly, this niche industry is seeing rapid transformation across the globe; as per the research.

Dharmendra Pradhan, Minister of Petroleum & Natural Gas speaking at the India Energy Forum of CERAWeek conference last year said, "Today India is sixth largest economy in the world and third largest energy consumer after US and China. India

will be the key driver of global energy demand in coming decades."

"Growing presence of global oil and gas majors like Saudi Aramco, ADNOC, BP, Shell, Total, Rosneft and ExxonMobil in India is a testimony to the faith and confidence of global investors on promising India's growth story. Our fuel standards are comparable to the best in world and pan India BS-VI complaint fuel will be available in India from April 1, 2020," he added.

Also, if we refer to IBEF report, it states that India’s stands third in the global energy consumption, and similarly the demand is India is expected to increase threefold to 1,516 million tonnes of oil by 2035.

Moreover, Governments has also provided with Supportive FDI guidelines that permits 100 percent FDI (Foreign Direct Investment) in upstream and private sector refining projects, as per the report. Enacting various policies such as OALP and CBM policy to encourage investments, Government has been playing a crucial role in the further growth of this industry.

Some of the future trends which are set to further disrupt this market is the incorporation of Smart Drilling, Blockchain Technology, efficient renewable energy technology and sources, dawn of ‘Gig Economy’, Smart oilfield technology, and digital transformation offshore. Furthermore technology trends in Oil & Gas Industry including Artificial intelligence and automation, Big Data and Data Analytics, IoT and Electronic Monitoring, 3D Virtual Modeling and Drone Technology, have been a game-changer for industry players.