India to be hub of oil demand growth after 2020: IEA
As per Paris-based International Energy Agency (IEA), India will become the largest single source of global oil demand growth after 2020.
Key predictions of IEA published in its World Energy Outlook:
- The global oil demand is projected to touch 101 million barrels per day (mbpd) by year 2035 from today’s around 87 mbpd.
- The centre of energy demand is shifting decisively in favour of emerging economies, particularly China, India and the Middle East, which drive global energy use 33% higher.
- India’s oil consumption will exceed 8 mbpd by 2035, which is more than current consumption of Japan, Korea and Australia put together.
- Currently, within Asia, China dominates the region, before India replaces it from 2020 as the principal engine of oil demand growth.
- India’s energy demand are estimated to double by 2035 on back of economic growth and population increase.
- By 2035, India is likely to be the largest importer of coal and will be second largest importer of oil next to China and will be number four in importing gas after European Union, China and Japan.
- Although the energy demand will be two-fold, the consumption per capita in India will still be 1/4th of the OECD average.
- China is predicted to become the largest oil-importing country by replacing US and India will become the largest importer of coal by the early 2020s.
- India’s coal imports will surge primarily because India uses the fossil fuel for generation of electricity and 68% of electricity in India is generated from coal.
International Energy Agency (IEA)
The International Energy Agency was established by the Organization for Economic Cooperation and Development (OECD) as a response to the oil shock of 1973-74. IEA advises its 24 member countries on issues related to energy security.