According to the 'Indian Oil Market Outlook to 2030' report, what factors are driving India to become the largest source of global oil demand growth by 2030, and which segment is expected to be the single largest source of oil demand growth in the country?

Solution

•     According to ‘Indian Oil Market Outlook to 2030’ report by International Energy Agency released at the India Energy Week 2024 in Goa, India would become the largest source of global oil demand growth by 2030, while growth in developed economies and China initially would slow and subsequently reverse. •     Urbanisation, industrialisation, emergence of a wealthier middle-class keen on mobility and tourism and efforts to improve access to clean cooking, would spur expansion in oil demand. •     India is on track to post an increase of almost 1.2 mb/d (million barrels/day), accounting for more than one-third of the projected 3.2 mb/d global gains, to reach 6.6 mb/d by 2030. •     Massive industrial expansion would see diesel continuing to remain the single largest source of oil demand growth, accounting for almost half of the rise in India’s demand and more than one-sixth of total global oil demand growth through to 2030. •     Jet kerosene demand is set to grow at about 5.9% per year on an average, but from a low base compared with other countries. •     Gasoline would grow by 0.7% on average, as electrification of the vehicle fleet dampens demand. Learn Along: About Interntional Energy Agency •     The IEA was founded in 1974 to ensure the security of oil supplies. •The IEA’s founding members were Austria, Belgium, Canada, Denmark, Germany, Ireland, Italy, Japan, Luxembourg, The Netherlands, Norway, Spain, Sweden, Switzerland, Türkiye, United Kingdom, and the United States. •     In 2021, the IEA published Net Zero by 2050: A Roadmap for the Global Energy Sector, setting out a narrow but achievable pathway for the global energy sector to reach net zero emissions by mid-century, and establishing a benchmark for national and international climate goals in line with the Paris Agreement target of limiting global temperature rise to 1.5C. •     Executive Director: Dr Fatih Birol