India pressed for assessing the impact of COVID-induced disruptions to global energy sector supply chains and said oil cartel OPEC needs to address anomalies in the crude price differential for different regions. Speaking at the 4th high-level meeting of the India-OPEC Energy Dialogue, Petroleum Minister Dharmendra Pradhan said OPEC meets 78% of India’s crude oil demand, 59% of its LPG needs and nearly 38% of LNG consumption. India imported USD 92.8 billion worth of hydrocarbons from OPEC countries in 2019-20. The pandemic has impacted the global oil and gas industry by a significant impact on both oil demand as well as the supply side, creating an unprecedented global oil price volatility.
“We are already seeing the signs of a second spell of lockdowns in several countries in Europe, and their immediate impact on crude prices. In my view, it is essential for India and OPEC to take a deep look at the rapidly changing global energy landscape, particularly in oil and gas sector, and revisit the ongoing exchanges so that we can jointly address the energy challenges during the ongoing and in the post-COVID scenario. There is a need to assess the impact of COVID-induced disruptions to the global energy sector supply chains and calibrate our approach towards revival of energy sector.” he said.
Pradhan said India expects OPEC Secretariat to increase its advocacy among its member countries to address the anomalies prevalent in the crude price differential declared by them for different geographical regions.
OPEC has projected India to emerge as the leading energy consumer over the long term. In its recent World Oil Outlook 2020, they projected India to account for 16% of the global economy by 2045, double that of today. India’s oil demand is forecast to rise from 4.7 million barrels per day in 2019 to 10.7 million bpd by 2045, with its global share rising from 5.2% to 10.8% by 2045.
