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Oil and Gas in India

The Future of Oil and Gas in India

How rising demand, EVs, ethanol, gas expansion and climate goals will shape India's oil and gas future, and a recap of the module.

India’s oil demand is expected to keep growing for years.

Demand drivers

  • More vehicles and trucks.
  • Aviation growth.
  • Petrochemicals.

Moderating factors

  • EVs and ethanol blending.
  • Public transport.
  • Efficiency.

Global role

The IEA expects India to be the largest source of global oil demand growth in coming years.

Energy security

  • Diversifying suppliers.
  • Building reserves.
  • Boosting domestic production.

Module recap

  • India imports around 85 percent of its crude.
  • ONGC leads upstream production.
  • Bombay High was discovered in 1974.
  • Taxes make up a large share of fuel prices.
  • Ujjwala expanded LPG, but refills lagged.
  • Strategic reserves cover about 9 to 10 days.
  • India bought discounted Russian oil after 2022.
  • City gas networks expanded.
  • Domestic gas prices follow formulas.
  • OMCs often froze prices.
  • HELP and OALP aimed to attract exploration.
The balancing act

India's planners must meet rising fuel demand while cutting imports and emissions, using EVs, ethanol and gas.

Thinking India's oil demand will fall soon

Demand is expected to grow for years.

Key takeaways
  • India's oil demand will keep growing.
  • EVs and ethanol moderate growth.
  • India will drive global oil demand growth.
  • Energy security needs diversification and reserves.
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