New Delhi: The Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, has with confidence asserted that the nation is adequately equipped to fulfill its escalating energy requirements, boasting a diverse array of oil sources.
In an interview on the global oil market's oil availability, Puri highlighted India's broadening procurement base, transitioning from a previous 27 suppliers to 39.
"We are now sourcing from 39 suppliers, a significant increase from our previous 27. There is an ample supply of oil available, and this diversification of our sources affords us a wide array of options," Puri stated, underscoring India's strategic role within the global oil supply network.
Concerning potential disruptions in the oil market, the minister minimized any immediate concerns. He emphasized that the global oil supply currently exceeds consumption levels, ensuring market stability.
Puri remarked, "Our energy demand has been steadily increasing. Today, there is more oil available than there is consumption. Should any parties restrict supply, there are new suppliers entering the market. In the short to medium term, I see no shortage of oil in the global market."
Puri's remarks are made at a juncture when the global oil markets are under scrutiny, with various geopolitical and economic factors influencing supply chains.
However, India's proactive approach to oil marketing is evident, with Russian crude oil accounting for a record high of 44 percent of India's total imports in July 2024, marking an all-time high of 2.07 million barrels per day (bpd).
This represents a 4.2 percent increase from June and a 12 percent rise from the same period the previous year, according to data from trade and industry sources on Indian shipments.
India's oil marketing companies (OMCs) are anticipated to enhance the nation's crude oil refining capacity by 35-40 million tonnes (MT) by the fiscal year 2030, Crisil Ratings has projected.
This expansion is expected to increase the total installed refining capacity to 295 million tonnes by 2030. The impetus for this growth is the rising domestic demand, with existing refineries operating at capacities ranging from 100 to 103 percent.
The project is projected to require a capital investment of approximately Rs 1.9 to 2.2 trillion, with the majority of the new capacity being developed through brownfield expansions.
Over the past decade, India's refining capacity has expanded by 42 million tonnes (MT), reaching a total of 257 million tonnes in fiscal 2024. This expansion has been primarily driven by the surge in domestic demand, while exports have remained steady at an average of 60-65 million tonnes annually over the same period.
The domestic consumption of petroleum products has seen a compound annual growth rate (CAGR) of 4 percent over the last ten years.
