It’s time oil producers listened to consumers, says Pradhan as prices rebound
Pradhan said the country’s share of total global primary energy demand will nearly double to 11% by 2040
NEW DELHI: Amid a rebound in global crude prices and OPEC considering extending production cuts, petroleum minister Dharmendra Pradhan on Wednesday called for “reasonable and responsive” oil pricing, saying it is time the producers also listened to the consumers as the days of monopoly are over.
For heft and to underline India’s position in the global energy architecture, Pradhan said the country’s share of total global primary energy demand will nearly double to 11% by 2040 on the back of strong economic growth and its energy consumption will rise at 3% annually till then — the fastest among major economies.
India currently accounts for only 6% of the world’s primary energy consumption and the per capita consumption of energy is still a third of the global average. “But all that is changing rapidly,” he said, adding that despite the transition to renewables and other alternate energy sources, India’s oil demand would double and gas demand would treble by 2040.
OPEC is currently debating whether to roll over the historic production cut of nearly 8% of daily global demand into 2021. Oil prices have over the past fortnight risen to their highest since March on hopes of OPEC extending the production cut deal and an early return of demand because of the success of Covid-19 vaccine candidates.
Pradhan said India is in the midst of a major transformative shift in its energy sector to end energy poverty in India. “While doing so, our twin objectives are to enhance availability and affordability of clean fossil and green fuels and to reduce the carbon footprint through a healthy mix of all commercially viable energy sources,” he said.
“Our Government is also committed to reducing the emissions’ intensity of the GDP by 33% to 35% from 2005 levels. We are consistently taking energy policy initiatives. We are developing next-generation infrastructure based on five guiding enablers of energy availability, accessibility, affordability, efficiency and sustainability to fight climate change and mitigate global uncertainties,” he said.